The Washington times., 1917-12-31
M 'ADOO TORAISE
PAY OF 100000
R. R. EMPLOYEES

Continued, from First Page.)
shipyarda While the new rates VIII
d be paid. through the present railroad
offices, the Government will supply
the additional money because the
guaranteed average net railroad in
come OF the past three years cannot.
IN most cases. cover the raise.
VIII BE Fairly Treated.
The amount Of the increase has
not been determined, but President
Wilson has assured the men their
requests will be fairly dealt with"
The mediation board asked McAdoo
to be permitted to represent him in
conference with brotherhood leaders
The railroads will not figure in the
conferences, unless as a tolerant
third party, because only the public
and the employees are directly con-.
cerned. The railroad security holders
are protected by the Governments net
income guarantee.
McAdoo may act personally for
speed. without awaiting mediation, al
though the brotherhood leaders were
reconciled at their recent conferences
with President Wilson to sixty days
delay. They will learn McAdoo's de-
cision regarding mediation At a meet
ing with him scheduled for later this
week.
improvements Next.
His order No. 1, pooling equipment
and terminals in one national system
disregarding corporate advantage, re-
mains to be worked out II did not
increase roISing stock. Railroad ex-
perts say trying to handle all avail
able freight today with the present
equipment Is like trying to crowd. .
quart into a pint bottle.
McAdoo is already turning his at
tention to financing improvements in
terminals and equipment. Some OF
the ], 800 locomotives under order In
American plants by foreign govern
ments will be requisitioned- Some
lines will be stripped Of engines and
freight cars. which will be placed
into service in congested territory.
Many passenger coaches will be con-
verted into freight cars.
Additional terminal facilities and
storehouses will be constructed at
tidewater ports and at the big inland
railway centers.- It will be weeks
probably months, before the common
use OF present terminals at New
York, Jersey City. and Chicago can
be worked out
Public Patience Asked
Government officials today asked
the public to be patient with Federal
control. New tracks, engines. freight
cars, and terminals must be built
Priorities must be revised Rerout-
ing will require careful thought To
do away with present congestion in
the East will take weeks. McAdoo's
organization must be completed and
10 male ffa Mans
Many steps must wait on Con
gressional sanction This legislation
Is being framed today to cover the
finances and intricate legal problems
from the change to Govern
ment control
This legislation will include=
Congressional authorization to COM
pensate the railroads annually on =
basis or the net operating income q
the last three years.
, Many Appropriations
Appropriations for new warehouses
and other needed improvements. Au-
for steps the Government
must take to unity the systems fur
ther than McAdoo has yet gone or to
legal ize some steps he may take In
the emergency.
Laws to protect the travelling and
Snlppl0B PUBIC from losses now
borne by the railroads themselves.
1t Is the belief OF constitutional law
years that travellers and shippers to-
day have no recourse for damages
suffered in railroad accidents or de-
lays. The Government, having leased
the railroads, they say, Is liable for
such damages. but under the laws OF
the country the Government cannot
be sued.
Fight On Compensation.
While the President will get ex-
actly what he wants from Congress
there will be a spirited fight against
mis- plan for compensating the rail-
roads on a basis OF their last three
years net operating income. A group
Df Senators, led by Cummins OF Iowa,
think the compensation should be
based on a fat 6 per cent OF the aver
age market value OF stocks during
the last five years. Such basis, they
would save the Government
millions and fairly compensate the
railroads.
But the President and McAdoo VIII
have their way. all agree.
Aside from this point there is no op-
position to the Government railroad
plan and opposition party leaders who
nave studied the railroad problem and
.alked with McAdoo as to his plans
iay he shows "a remarkable grasp OF
he work" 49,