Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-12-30
MR.. M'ADOO GIVES
RAIL ORDER NO. /;
NAMES ASSISTANTS
Director General Takes First
Unification Steps, Providing
That Traffic Be Pooled.
TERMINALS AND ROLLING
STOCK FOR COMMON USE
Reasonable Notice Expected When
Employees Quit; W. D. Hines and
A. II. Smith to Assist.

Employees Quit; W. D. Hines and
A. Il. Smith to Assist.
William G. McAdoo, director general
of railroads. last night took first def
mite steps toward the program of ma
tional unifeation of all railroad systems
of the country, made possible by the
Presidents proclamation for federal
railroad control.
Director General McAdoo named two
assistants to aid him in directing the ad-
ministration of the railroads, and he is
sued his first orders, termed "Order No.
l." in which fhe sets forth specific in
structions about absolute pooling of all
traffic, common utilization of terminals,
rolling stock and other facilities, haul
ing of freight by shortest routes, and
retention of all present officers and EN-.
ployes.
Railroad Executives View.
Railroad executives in Washington
yesterday expressed their belief that
the transportation system never will 60
back into private hands. and gave two
reasons for this feeling: First. they do
not believe the stockholders will agree
to 1T with revenues guaranteed under
government operation. and. second, they
believe that the formation of cone
tinental railway combination will make
it impossible to go back to the old com.
petitive system,
In the light Of railroad employees de.
mands for q 40 per cent increase, effec-
tive January 1,1s1S. one paragraph OF
Mr.. McAdoo's order No. attracted wide
attention. It stated:
Any officer. agent or employe desir-
Ing to retire from his employment shall
give the usual and reasonable notice to
the proper officer. to the end that there
may be no interruption or impairment
of the transportation service required
for the successful conduct OF the war
and the needs Of general commerce.
Selection of Assistants.
] Special instructions were issued for
the clearing aS congestion in New York
and Chicago fkronxh pooling of ter-
minAle And other traffic facilities, assd
Aifred Il. Smith. president OF the New
York Central was named temporary
special assistant to supervise transpor-
of the Mississippi and north Of the Ohio
rivers, where congestion is greatest
Walker d. Hines Of New York. a rail-
road lawyer and for many years a spe-
cial student Of government operation.
was appointed assistant director gem
eral. pending the forma ton of a per-
manent staff. The Interstate CcAnmercs
Commission was drafted for an imInedi-a
ate investigation by it's inspectors Of
general freight conditions on eastern
trunk lines.
Roads Refuse Wage Increase.
While the director general was con-.
ferring yesterday with a number Of
railroad heads, Interstate Coplmerce
Commissioners and members of Com
gress, and planning immediate action
to remedy faults of transportation, it
became known that the demands of the
four railway brotherhoods for 40 per
cent wage increase had been denied
by the railroads, and that consequent-
ly the labor men had decided to post
entation of their case to the govern-
ment. 1t was thought probable that
President Wilson would take up the
labor situation in his address to Con-
gress next Thursday or Friday.
The railroad brotherhood chiefs al
ready have assured President Wilson
that under no circumstances would
they tie up transportation while the
wage question was at issue.
To Handle Securities.
A corporation to handle railroad se-
curities probably will be provided in
legislation the President will suggest
to Congress. 1t would pass on all Sc
curities proposed and would buy them
as offered, holding them for sale when
market conditions were good. The cor
poration also might be called on to
6p raj ant =,
suggested that it might be capitalized
at billion dollars. since that is the
sum the railroads estimate will be need
ed next year for the purchase of new
equipment and for bond issues.
Congressional agencies went to work
on the new railroad situation The
Senate interstate commerce COMMITTEES
at a special hearing drew from Chair
man Hall of the Interstate Conlmerce
the statement that the gov
ernment's failure to centralize priority
administration was largely responsible
for freight congestion.
Cummins Expects Speedy Action.
Senator Cummins. ranking republican
of the Senate interstate COM
merce committee, in conference with
Mr. McAdoo. expressed the opinion that
legislation to prescribe the basis of gov
ernment compensation to the roads
would be passed speedily, though not
without some opposition to the Presi-
dents suggestion of guaranteeing to the
the average earnings for the
last three years
The railroad war board. whose sery-
ices have been solicited temporarily by
the director general, presented recom-
menda tions for speedy moving of freight
IN the Chicago congested center and
made a number of other suggestions for
economies and efficiency under the new
plan.