Arizona republican., 1917-12-28

LIE AlolLJAN h- ltJI C DIII> a thoroughly unified system is of fun l damental importance to the success of | the war. Without it we cannot get the effective use of our resources. The | supreme test in this war will probably come in the year 191S.- Victory will depend upon our speed and efficiency. We can get neither speed nor eff cincy unless the railroads are equal to the demands of the situation.
 T can only say at the moment that the problem will be taken hold of viz orously and that plans and policies will be announced from time to time as rapidly as it is possible to mature them. Meanwhile the business will be conducted through existing railroad or ganzations with all the support and power of the government asserted in behalf of more efficient and satisfac- | tory operation.
 The director general of railroads, upon invitation of the interstate com merce commission, has accepted offices | in the interstate commerce building. The commission has also placed at the | disposal of the director the entire fa- cilities of the commission"
 May Retain Judge Lovett
 It is thought probable that MT. Me | AdOO will retain the services of Judge Robert $. Lovett, director of priority for the war industries board with whom he conferred at length today, and that railroads will he instructed to continue to receive orders from that source. Another priority question to be settled soon is that of CO., ordinating the preferential shipment instructions now issued by the fuel and food ad- ministrations and army quarterma sters through single government transpor- tation director to supervise only gov ernment shipments.
 The director generals advisors have recommended the creation of such an agency, emphasizing that the govern ment railroad administration must jus tlfy itself Immediately by providing for speedier transportation of coal MT McAdoo is known to have given serious thought to the coal situation, and tC have received suggestions that rep resentative of the fuel administration be included in his staff.
 Mr. McAdoo does not expect to ask an appropriation for administering , government operation and his staff probably will be composed largely of men already on the government oi railroad payrolls. He will receive nc additional salary for acting in th< dual capacity of director general o1 railroads and secretary of the treas ury. It is expected he also will re. 7 tam the services of the railroads f committee which has been admins. \ tering the equipment pool with head. hquarters at Pittsburg.
 The pending demand of the foul
 railway brotherhOods for forty pel [, cent wage increase will be considered z probably in a month or two, alons . with the more sweeping question O
 higher wages for all employees. Tn,
 director generals advisers will sug r gest that board of managers b, 6 appointed to thresh out general wag, Q matters for his final consideration. 4
 sharp reduction in high salaries nov
 paid railroad presidents may help il
 small way to provide funds fo . wage increases.
 V Plan of the President
 If congress follows President Wil f. sons recommendations concerning tn
 guarantee of the average pre-wa earnings, it will obligate the govern
 ment to the extent of s9lS,424.Ss: a the average annual earnings of a Q railroads for the three years endin |. last June 30. Figures compiled b 70 the bureau of railways economies. a " agency of the companies, show ne l. operating Income for the year endin II June 30, 1915, as s695, ,931,S61; fo S. 1916, s1O05, ,192,794, and for 1917, s1, if 054 100, ,790.
 Congress might establish this bas
 of compensation, virtually the leas
 rate for the period of governmer s operation, but it could not comp, ii any road to accept the terms, and n company would have recourse to tf e courts if it considered the rate to J. low. This course is not looked fC ie rom many roads, however.
 l. Under the bill which officials hay 70 drawn for presentation to congress. Id would be provided that earnings e1 If ceeding this basis would revert = the government for general expend
 ture, or as a special fund for raj ,e road improvements. Dividend pa, l. ments would be subject to supervisiC ir and approval of the interstate con T. merce commission. Roads would nal
 their own improvements under il st plan, and provide for their own bor Id issues. but both would be under go, as erhment supervision. The size al l- interest rate on securities issu ld would be subject to the intersta ,p commerce commissions approval al g. the rate would be- limited to a min he mum Of four per cent and max to mum of 612 per cent. The preside
 would be authorized to buy on go
 mernent account any or all futu
 railroad bond issues, most of whi, ne would be to provide additional equi an ment ands improvements. Thus fl nt. necessary legal means would be pr
 vided for government financing
 improvements. Such a plan wou
 automatically give the governme
 power to regulate improvements al
 to prevent extraordinary and unne TT essary expenditures for such pu poses.
 1t is understood to be Mr. M
 Adoos intention to resort to co
 struction of new lines wherev II" II" needed for efficient prosecution of t ne economic forces behind the war, as Shortest and Most Direct IT. Under the traffic pooling plan to GIT worked out by Secretary McAdoo director general of railroads, freis ls- Will move over the shortest and m HIS convenient routes regardless of the
 dividual interests of the roads. Sir as earnings as well as facilities will - pooled, this system can be pursued
 an extreme limit, officials point out
 day, without 'endangering the revenl
 of any line. Earnings will be poo
 and paid out on the basis of pre-
 returns regardless of how much frei,
 railroad actually moves.
 Railroad experts admit there i
 great loss of efficiency in competiti
 Freight often is billed over parti,
 lar line when it might be handled ml
 more expeditiously over another.