The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1917-12-27
BIC RAILROAD
SALARIES, WILL
Be CUT down
OFFICIALS TO BE PAID LESS AND
EMPLOYEES MORE UNDER FED
EKAL OPERATION.
u. 5. BUY SECURITIES
Paper Will Draw Four Per Cent, and
All Earnings Over An Amount TO BE
Agreed On Will Go Into the Govern
ment Treasury.

Washington. Dec 27.-One of the
first acts of the government in defining
operation OF railroads will be to reduce
large salaries now paid the railway ex-
ecutives and increase, in some measure,
wages of the railway workers.
The presidents of many large lines
now receive largesalaries, ranging from
$50 900 to sl50.00o year. and one of
the first acts of the director general
probably will be to cut these sharply.
Ten thousand dollars a year Is being
discussed as maximum. although there
is no tendency to under estimate their
worth to the government in the war
emergency. Some railroad men pre-.
dicted that the officers would accept
these reductions willingly, i'm view of
the fact that they are virtually drafted
for war work.
The saving in salaries would be APP
Piled to raising the pay OF members
of the four railway brotherhoods. whose
officers conferred today with President
Wilson. and also of other railway eni'
ployes- -unorSanized. -tp.f. rr
Securities to be issued while the gov
ernment is in control will be at interest
rates DOI TESS IMAM lOui pei ttHbs anu
the issues will be made under Joint ac'
tion of the director general and the
Interstate Commerce commission.
President Wilson. when he outlines
the governments plans, in his forth
coming address to congress, will ask
that the government he empowered to
buy any quantity of new railroad Sc
curities All earnings over and above
an amount to be agreed upon VIII go 10
the government.
Congress will be asked to appropriate
large fund-probably two hundred
million dollars-for the immediate sup
ply of rolling stock TO handle the flood
of traffic which has swamped the roads.
As To Express Companies.
The director general will have att
thority to decide whether Nhe govern
ment shall also assume operation ana
control of the express companies.
President Wilson will recommend to
congress that the railroads be guaran-
teed the average net income of tie
three years ending June 80. 1917, but
any railroad may abide by its constitu-
tional right and accept this basis of
compensation. In that case the ques-
ton will pass to an arbitrating body,
the precise nature of which is to be de-
termined by congress.
The equipment fund will also be used
to pay any deficit Of earnings this year
under the pre-war average, or the
amount agreed upon. but officials who
have given the situation close study
believe il NAV be unnecessary to eX-
pend any great sum in this way. They
believe that the government. by elimi
mating wasteful competition and un-
necessary expenses under common
control can save hundreds Of millions
of dollars. Some officials even estimate
that the saving would be a billion dol
lars a year, and that the government
will be able to garner revenue from
the government operation plan in addi-
ton TO insurlng railroad securities hold
ers against loss.
To Compensate Losing Roads.
Although in most cases earned divi-
dends exceeding the guarantee will re-
vert TO the government. congress Will
be asked TO make provision for railroads
whose pre-war earnings were abnormal
ly low, by authorizing the payment of
dividends in excess OF these amounts on
approval of the Interstate Commerce
commission.
Railroads will continue to provide
for their own issues of securities. but
will be compelled to obtain the APP
proval of the director general before
going to the Interstate Commerce COM
mission for final sanction. The COM
mission will pass on the size OF the
issue. and the director general will de-
terminte the interest rate. which could
not be less than four per cent under
the proposed plan.
In his dual position of secretary of
the treasury and director general OF
railroads. Mr.. McAdoo will be in the
best position to pass on questions OF
interest rates for securities
Wall Street l. Pleased.
New York, Dec. g7.-Almost without
exception leading bankers and execu-