Arizona republican., 1917-12-27

Direct management Of the roads will remain in the hands of railroad off cials and the railroads war board, comprised of five railroad heads, will continue to direct acutaL operation under Secretary McAdoo's general su- pervision.
 The chief practical effect of govern ment operation will be to permit a complete unification of all rail sys- tems, impossible under private opera tion because of statutes prohibiting pooling of rail traffic and earnings. The roads themselves had gone as far as they dared in this direction, and it became known only today that they had been warned by Attorney General Gregory that a violation of anti-pool- ing laws could not be permitted.
 This situation was fully realized by President Wilson who in his statement declared the roads had gone as far as they could and that already some sys- tems were endangering their earnings in attempting unification.
 Although the proclamation applies to all electric lines engaged in general transportation local interurban sys- tems 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 30. 1917. Railroad experts estimate that this will cost the government next year in the neighborhood of S100 0000,- 900, which can be raised in large part by increased freights if the interstate commerce commission grants the roads application for the 15 per cent increase now pending. Otherwise it will be paid | largely out of the general government 1 funds
 The interstate commerce commis- sion and other government agencies which have to do with the railroads | will continue to perform their func- tions as heretofore, except that they will be subject to orders of the director of railroads.
 The president makes it clear that his decision was not made because of any | failure on the part of the railroads to perform their whole duty insofar as they could while hampered as they were by legal restrictions.
 The plan of control as outlined in the proclamation and statement leaves much unsaid as to details. but the gen. eral scheme appears to follow closely the British system. In England, how ever, government freight is carried free and the guaranteed earnings re- l quire an enormous amount of money
 
 United States the government will pay for it's freight as in the past and will stand its part of increased freight tar | ifs if they are found to be necessary. Aside from the presidents statement ! there was no comment in the capital tonight on the governments move. Secretary McAdoo declined to be quot ed and members of the railroads war board said they would have no state !
 'I have exercised the powers over the transportation systems of the country which were granted me by the act of congress of August 1916 because it has become imperatively necessary for me to do so This is war of re- sources no less than of men, perhaps even more than of men and it is neces- sary for the complete mobilization of our resources that the transportation systems of the country should be or ganized and employed under a sllgle authority and a simplified method of CO., ordination which have not proved possible under private management and control. The committee of railway ex- ecutives who have been cooperating with the government in this all inn portant matter have done the utmost that it was possible for them to GO: have done it with patriotic zeal and ; with great ability, but there were diff faculties that they could neither escape l nor neutralize. Complete unity of ad- ministration in the present circum
 (Continued on Page Two)