Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-12-27

Washington, Dec. 26.-Gov-
ernment possession and opera
tion of the nations railroads for
the war was proclaimed by Presi-
dent Wilson tonight to become
effective at noon Friday, Decem-
ber %. William G. McAdoo, re-
tanning his place in the cabinet
as secretary of the treasury, is
placed in charge as director-gen-
eral Of railroads.
Every railroad engaged in
general transportation with it's
appurtenances, including steam
ship lines, is taken over and all
systems will be operated as one
under the director-general.
In a statement accompanying
his proclamation the President
announced that as soon as Con-
gress reassembles he will rec
ommend legislation guaranteeing
pre-war earnings and mainte-
nance of railroad properties in
good repair.
Government backing will be
given to new issues of railroad
securities that a ready market
may be found.
The Presidents move, al
though forecast for weeks, came
at this time as a great surprise
to nearly everybody in Washing
ton including railroad officials.
It had been generally believed
he would await the reassembling
of Congress before taking any
step. He acted through Secre-
tary of War Baker under au-
thority conferred in the army
appropriation act.
Direct management of the
roads will remain in the hands of
railroad officials and the rail-
roads war board, comprised of
five railroad heads, will continue
to direct actual operation under
Secretary McAdoo's general su-
pervision.
| Inc CHIeI pTdCtlCdI eIeCI ot government
operation will be to permit complete
uhJfcation of all rail systems. impossible
under private operation by reason of
statutes prohibiting pooling Of rail traffic
ana eafSnings. The roads themselves had
gone as 1her as they dared in this direc-
tioT. an Iecame known only to-day
~-that t6eyUlad been warned by Attorney
General Gregory that violation Of anti
pooling laws could not be permitted.
This situation was fully realized by
President Wilson. who IN his statement
endangering their earnings in attempting
unification.
Although the proclamation applies to al
electric lines engaged in general trans
portation, local interurban systems are
specifically exempted.
Congress will be asked to guarantee
earnings equivalent to the average net
operating income of each railroad IN
the three-year period ending June 80
1917. Railroad experts estimate that
this will cost the government next year
in the neighborhood of 100000, 900
which can be raised in large part by
Increased freights II the interstate
commission grants the roads applica
tion for the fifteen per cent. rate in
crease now pending. Otherwise 1T viii
be paid largely out of the general gov
ernment funds.
The Interstate commerce commission
and other government agencies. which
have to do with the railroads will con
tinue to perform their functions a.
heretofore, except that they will b'
subject to orders of the director o.
railroads,
The President makes 1t clear that hi
decision was not made because of an!
failure on the part Of any railroads Il
perform their whole duty insofar as the!
could while hampered as they were b.
legal restrictions
The plan of control as outlined leave
much unsaid as to details. but the genera
scheme appears to follow closely thu
British system except the United State
government will pay for it's freight as II
.hA past. Aside from the Presidents state