The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1917-12-29

Government control at the present
time was an absolute necessity. And
they have buckled too to help in every
way.
Mr.. McAdoo today was considering
the makeup OF his executive staff.
While he expects to continue for some
time the Railroad War Board, 1t must
Of necessity confine its work to rec
concentrations as to operation and
the like. The new director, however,
expects to have a staff OF competent
advisers who will keep him posted
in a disinterested manner as to de-
velopments. On the questions OF
finance he will have as two of his
most prominent advisers Frank w.
Yanderlip, now connected with the
Treasury for the period OF the war,
and Comptroller OF the Currency John
Shelton Williams.
1t was suggested today that one OF
the early moves in the financial plan
will be to take the new issues of rail-
way securities out of the hands of
Wall Street when they are needed and
float them through the Federal Re-
serve Banks as fiscal agents. This
would save to the Government the
commissions which the various Wall
Street men have retained as their
they have done. However. this is a
question that will not come up for
decision until after Congress has
acted.
Others Assisting.
John Barton Payne, counsel for the
Shipping Board, and Stuart Gibboney
of New York are assisting Mr.. Nc
Adoo in the various matters of detail
that are cropping up from time to
time. 1t is accepted that they are to
be members of his staff.
The first real problem to be settled
after the roads are running smoothly
under the new plan is that OF con-
struction. Terminals must be i'm
proved. For years Government Off
Gals and railway executives have
agreed that the crying need OF the
American railway system is for en-
HANGED terminal facilities.
The first job to be tackled along
this line will be the clearing OF the
congestion at the port of New York
by increasing terminal facilities. By
ron n. Newton, collector OF the port
of New York. will be Director Nc
Adoo's chief lieutenant in this work.
Mr. Newton is on the port war board
in New York, and has for some
months been working on comprehen-
sive plans for clearing congestion at
New York. His plans will fit in with
McAdoo's new ones. When Mr.. New
ton took the collectorship last fall
il became known that his platform in
his new office Nyas increasing New
York shipping and railroad terminal
facilities. ell has been working along
IL -, NJ
Adoo will find much of the solution
OF the New York problem well on its
way to being worked out.
Takes Up Rates.
The question of freight rates is be-
fore Mr.. McAdoo today. In all prob
ability he will grant the Eastern rail-
roads a substantial rate increase in
the near future. This appears to be
certain in the light of his assertion
that he will not Immediately ask Con-
gress for an appropriation to better
railroad conditions. Railroad condi-
tions must Immediately be betteTed
money is requisite; McAdoo has power
TO grant increased rates and make
betterments; the result of this equa-
ton here is read in no other way than
a general rate INCREASE for the East
ern lines. Passenger fares are prac-
tically certain to be increased, pos
sibly 80 per cent, as in England at the
outbreak OF the war. This will be
done to discourage passenger traffic,
leaving locomotives free to haul more
freight.
Government ownership OF public
utilities today is beginning the big
gest test il ever has undergone.