The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-12-28
THE GREAT
AMERICAN RAILWAY
(Continued from page u

| buffer between TdllTOdu lAtSlCSss
and the director general. John Skel
ton Williams, former president OF the
Seaboard Air Line, and present con
troller OF the currency, is mention
ed for this post
Three chiefs, on whose shoulders
will fall the actual operation.
These will be director of opera
tons, director of traffic and direc-
tor Of finance.
The director of operations will be
| a man told to get cars rolling IN
most efficient, economical and prac-
| teal manner, regardless Of any in
terests except those of the public
the war. He will enforce the vast
pooling Of rolling stock. terminals
and other equipment made possible
by government administration. In
short all problems of actual physical
operation will be up to this man,
subject, of course, to direction OF
Director General McAdoo. In view OF
| his duties, this man it was regarded
certainty will be some prominent,
broad-visioned railroad operator. Sew
i eral, including Daniel Willard, presl-
dent OF the Baltimore and Ohio, Hale
Holden, president of the Burlington,
and Fairfax Harrison, president Of
the Southern, are mentioned.
| The director of traffic, it is pre-
/ sumed, will regulate priority and
direct movement of all freight, CO.
ordinating with the director OF oper-
ations.
! The director of finance will handle
the fiscal adjustments between the
road owners and the government.
icfo Of he Ell "a
congress will pass at the presidents
request. In addition to working out
| the equitable compensation or rent
al' the government will pay the
road; 1t in presumed he will also
attend to the payroll of the million
road workers who will have new
boss in the government. Matters OF
investment of government moneys
, in road improvements and adding
rolling stock and disposing of any ex-
cess earning the government may
make, also are expected to come
under him.
Below these three sub-heads, high
| ly centralized working organizations
will gradually be evolved, utilizing
present railroad organization as far
as is compatible with the plan of
divorcing private interest from the
| management.
This plan given today as the prob
able and logical arrangement, ii
was emphasized, may not be wholly
adopted at the outset.
Director General McAdoo announc-
| ed first steps will be taken cautious
! ly to avoid sudden DISBURSEMENT of
traffic. Existing organizations, too,
must be weighed, that every positive
force may be utilized in the recon
struction.
Legislation to be asked Of con-
gress Immediately after the recess,
besides defining the fiscal relation
ship of the plan, will provide for
transferring to Uncle Sans pay roll
the one million odd railroad workers,
or creating a wage adjustment board
Of directors, and probably for the
prevention of strikes, it was stated
today.
| McAdoo's plan to compensate rail-
roads on basis of the average net in
come of the last three years, the gov
/ eminent to retain all over this sum
for maintenance, new projects. and
reasonable dividends to stockholders.
will constitute the crux of the confer
ence between railroad officials and
McAdoo today.
| Congress also will talk itself hoarse
on the governments decision to COM
pensate the railroads on a basis of the
maximum earnings OF the past three
years instead of the pre-war period.
/ The railways regard the govern
ment's Intervention primarily as fin
ancial relief. The war board at to-
days meeting with McAdoo made
Ipointed inquiries regarding the ex-
tent to which they can now count on
his aid in obtaining needed funds to
finance improvements. A government
loan is not wanted, they stated, nor
any appropriation from congress for
equipment.
If McAdoo will appeal to the public
Ito buy railroad securities as they buy
Liberty bonds, or if the government
roads will finance themselves, the
board stated.
The railroads predict that advancing
expenses will necessitate the govern
ment making good a deficit on most of
the roads. Diversion of freight, pool
ing Of equipment and other war eff
cheney measures will make some lines
prosperous and reduce the revenues
of others. The guarantee Of net in
come, will protect all roads. In Eng
land the government takes the sur
plus Of the prosperous lines and uses
1t to make up the deficits on lines
stripped Of commercial freight for
moving troops and munitions free
McAdoo has power to order divid.
ends cut. AS the guarantee merely
serves net income, the division of this
Income may be varied to provide more
for improvements than in past years,
just as stockholders have enjoyed diff
ferent dividends in the past.
By general or special orders, the
presidents proclamation provides,
McAdoo may do most anything he
deems necessary to run the railroads
as war machine solely for efficiency
and victory.
The only guarantee the roads have
that he will not supersede the present
individual manag ements with a gro<t
lgovernm ent bureau occupying several
buildings here, with branches every
where, is the assurance they are re-
| rs h., Ell