Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-12-28

if 1t considered the rate too low. This
course is not looked for from many
roads however.
Under tho bill which officials have
would be provided that earnings cx-
cecding this basis would revert TO tho
government. for general expenditure.
or as n special fund for railroad i'm
provcmcnt3. Dividend payments would
be subject to supervision and approval
Of the Interstate Commerce Commits
| sion.
Roads would make their own i'm
provements under the plan. aud pro-
vide for their own bond issues, but
both would be under government SUI
pcrvision.
The President would be authorized
/ to buy on government account any or
all future railroad bond issues, most
of which would be to provide equip
mcnt or improvements. 1t is UNDER
stood to be Mr.. McAdoo's intention to
| resort to construction OF new lines or
additional tracks on trunk lines, If
! this proves desirable to relieve congcs-
ton. The Administrations policies arc
expected to be vigorous in extending
| lines wherever there Is need for prose-
cutting the economic forces behind tho
war.
Reports were circulated to-day that
the Interstate Commerce Commission
might decide 10 postpone indefinitely
decision OF the 10 per cent rate case,
and other important rate questions. un-
til it can be ascertained whether gov
crnment operation will result in ma
| terially lowering of operation costs
through elimination or competitive
waste.
The Association OF State Railroad
; Commissioners Will give full support
to the new plan SO long as their func-
lions are not -educed materially, but
they arc expected to protest against
beins deprived OF adjusting minor
questions OF rates and rules within
their territories.
STATUS OF EMPRESS
COMPANIES NOT FIXED
Until Mr.. McAdoo outlines his plans.
the ctatus OF express companies will
not be fully determined. Rolling stock
OWNED by the express companies. which
is comparatively little. will pass auto
matically under direct government
supervision tomorrow when the Pres
idcnts proclamation goes into effect,
and eventually It may be necessary for
Mr.. McAdoo 10 take them over to pro-
| tcc' their own rights as we'll as to pro-
vide the proper measure II -o-ooera-
ton with railroads and will, each
other.
The status os.the railroads war
board also is dependent on the direc-
, tor-Ecncrars plan OF organization. II
| has been the medium OF transmitting
government orders to all the roads,
but this function now will be assumed
by the drector-general.
The presidents of many large lines
now receive salaries ranging from
$4,000 20 $4,000 a year. and one OF
the first acts OF the director general
probably will be TO cut these sharply
! Ten thousand dollars year is being
discussed as maximum, although
, there is no tendency to underestimate
their worth 10 the government In the
war emergency. Some railroad men
predict that the officers would acccp,
these reductions willingly. in view OF
the fact that they are virtually drafted
for war work.
piled TO raising the pay OF members
! Of the four railway brothcrhoods, whose
officers conferred to-day with Presi-
dent Wilson. and also OF other railway
employees. The President was e1-
pectcd to ask the brotherhood heads to
give the fullest measure Of support to
government operation, and to leave
their pending demand for higher wages
for determination in the future
SOME EMPLOYEES ARE
CERTAIN TO he CUT OFF
Under government control, every
effort will be made to interfere as lit
tie as possible with the personnel Of
the companies, but 1t is considered
inevitable that some employees will be
cut off. This applies particularly to the
large staffs maintained by many roads
soliciting traffic. These reductions
probably will be more than offset by
the employment Of more men for
operating.
The effect of government. operation
on drafting railroad employees for
army duty is a question to be worked
out, but it seems probable that under
the new draft regulations recently put
into effect by Provost-Aiarshal-Gcn
ployccs will be considered too VAL
liable In their present work to be
drafted for fighting.
One OF the immediate effects of the
new plan will be tho rcrou.ing OF
much freight now passing over con-
Ecstcd lines, particularly In the East
The railroad war board has sought TO
divert traffic to lines least ovcrbur-
dened. but antipoolinE regulations
have hampered It.
MFR. McAdoo is expected to deyeIop a
staff Of assistants soon, but probably
will use tho existing agencies of tho
Interstate Commerce Commission TO
large extent.
The name OF John Skclton williams
now Comptroller OF the Currency. and
tenants in the Treasury, is being men
tenants in the Treasury Is being men
toned to-day as chief executive d.
rector under Mr.. McAdoo. He for
Inerly was railroad financier.
DRIVER IS EXONERATED