Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-12-27


portation traffic is dependent on rail-
roads.
Rolling stock owned by the express
companies. which is comparatively lit
tie, will pass automatically under direct
government supervision tomorrow.
when the Presidents proclamation goes
into effect and eventually II may be
necessary for Mr. McAdoo to take them
over to protect their own rights as well
as to provide the proper measure of CO.
operation with railroads and with each
other.
The status of the railroads war board
also is dependent on the director gen.
erals plan of organization. 1t has been
the medium of transmitting government
orders to all the roads. but this func-
ton now will be assumed by the di-
rector general
The presidents of many large lines
now receive salaries ranging from $780,
900 to $4,000 a year. and one Of the
first acts OF the director general prob
ably will be to cut these sharply.
Ten thousand dollars a year is being
discussed as maximum, although
there is no tendency to underestimate
war emergency. Some railroad men
predicted that the officers would &C.
cept these reductions willingly IN view
Of the fact that they are virtually
drafted for war work.
The saving in salaries would be ap-
piled to raising the pay OF members OF
the four railway brotherhoods whose
officers conferred today with President
- Wilson. and also other railway employ
es unorganiZed.
The President was expected to ask
the brotherhood heads to give the full
est measure of support to government
demand for higher wages for deter
minatio- in the future when the di-
rector general untangles many Of the
~ complications now developing.
Under government contret. every ef-
fort will be made to interfere as lit
tie as possible with the personnel OF
the companies. but ii is considered in
evitabls that sope employees will be
cut Off This applies rai t.cnlarly to the
large STATS maintained by many roads
for soliciting traffic. The reductions
probably will be more than offset by the
employment Of more men for operating.
Considered Too Valuable.
The effect of the government opera
tton on drafting railroad employees for
Army duty is question to be worked
out. but it seems probable that under
the new draft regulations recently put
into effect by Provost Marshal General
Crowder. a large proportion of the en-
ployes will be considered too valuable
in their present work to be drafted for
fighting.
One Of the immediate effects of the new
plan will be the rerouting OF much freight
ticularly in the east. The railroad war
board has sought to divert traffic to lines
least oyerburdened. but anti-pooling regu-
lations have hampered II.
Mr.. McAdoo is expected to develop q
staff of assistants soon, bat probably will
use the existing agencies OF the Inter
state Commerce Commission to large
extent The name OF John Shelton VIII
liams, now controller of the currency and
one of Mr.. McAdoo's principal iieutenants
in the Treasury, is being mentioned today
as chief executive director under Mr.
4IeAdoo. He formerly was railroad
Secretary McAdoo worked today on the
principal problems confronting him at the
outset and planned 10 make some an
nouncement later of his policies.
In a statement issued with the formal
proclamation President Wilson de-
clared he would ask Congress, as soor
as 1t reassembled. for legislation guar
anteeing:
To Guarantee Income.
First. that the railroad properties
will be maintained during the period o
federal control IN as good repair ant
as complete equipment as when taker
over by the government, and second
that the roads shall receive a net oper
ating income equal in each case to tn.
average income of the three years pre-
ceding June 80. 1917
Government backing also will b,
given new issues of railroad securities
so that a market may be readil.
found.
Railroad officials will retain direc
management of the roads. and the rail
roads war board. composed of fiv
railroad heads. will continue actua
operation under Director McAdoo's su
pervision.
The Presidents action. taken through
Secretary of War Baker under author
ity of the Army appropriations act O
m a q q rfSA L.
time. as II was believed he would avail
the reassembling of Congress and max
known his decision in an address Z
that body. Eventual government con
troll of railroads had been forecast
however. since the Interstate Com
meree Commission in special repor
to Congress recommended either gov
eminent operation or repeal of tn
antf-pooling laws and a federal loar
Commissioner McChord in g. supple
mental report declared for outrigh
government control as the only solu
ton. and many congressional leader
recently have concurred in this opiu