Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-12-27
PRESIDENT TAKES POSSESSION
OF TRANSPORTATION LINES
OF COUNTRY.
NAMES M'ADoo DIRECTOR
GENERAL OF LINES
Secretary Of Treasury to Hold Two
Positions-pireetion to Be Taken
Over on Frday-Acton Authorized
by Congress Last Ausust-To Ask
Congress For Guarantees.

Washington. Dec a7.-President
Wilson announced Wednesday night
that he will assume possession and OPP
Grafton of every railroad in the conti-
mental United States at noon Friuay,
Dec. IS. and that he had appointed Sec
reiary McAdoo director general of rail-
roads
Secretary McAdoo, whose appoint
ment is made by formal proclamation
i expected TO direct the uniicatton and
ouera,ion Of the roads thru their pres
emf nanagements. He Will retain mis-
plaCe in the ca binet as secretary or the
treasury.
In u statement accompanying his
proclamation, the president announced
that when congress re-assemoieo ne
would ask that definite guara-.ees 10
given that the railroad propertes VIII
be maintained in as good repair ana as
complete equipment as when taken
over, and that the net operating IN
come in each case shall equal the ave-
rage net income OF three years pre-
ceding June. 1917.
The railroads will be taken over un-
der authority already granted by con-
gress, thru the secretary Of war.
Presidents Statement.
The presidents statement follows:
7 have exercised the powers over
the transportation systems OF the
country which were granted me by the
act Of congress of August 1915 because
il 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 Il is nee.
essary for the complete mooi!izaUon
OF our resources that the transporta-
ton systems OF the country should be
organized and employed under single
authority and s:nplified method or
coordination which have not proved
possible under private management
and control. The committee Of rail-
way executives who have been CO.
operating with the government in this
all-important matter have done the
utmost that 1t was possible for them
TO do: have done It with patriotic zeal,
and with great ability; but there were
difficulties that they could neither
escape nor neutralize. Complete unity
Of administration in the present cir
cumstances involves upon occasion and
at many points serious dislocation OF
earnings, and the committee was. OF
course, without power or authority to
re-arrange charges or effect proper
compensations and adjustments OF
earnings. Several roads which were
willingly, and with admirable pubic
spirit, accepting the orders Of the COM
| mtttee have already suffered from
these circumstances and should not be
required to suffer further In mere
fairness to them the full authority OF
the government must be substituted.
The government itself will thereby
gain an immense increase Of efficiency
in the conduct Of the war and Of the in
Vulnerable activities upon which its
successful conduct depends.
Must Serve Public.
The public interest must be first
served, and. in addition, the financial
interests Of the government and the
financial interests OF the railways
must be brought under a common d.
rection. The financial operations OF
the railways need not then interfere
with the borrowings Of the govern
ment. and they themselves can be con-
Quoted at q greater advantage. In
vestors in railway securities may rest
| assured that their rights and interests
| will be as scrupulous!y looked after
| by the government as they could be by
the directors OF the several railway
systems. Immediately upon the as
sembling OF congress I shall recon-
mend that these definite guarantees be
! given: first, Of course. that the railway
properties Will be maintained during
| the period Of federal control in as
| good repair and as complete equip
ment as when taken over by the gov
eminent and second that the roads
shall receive net operating income
| equal IN each case to the average net
! income OF the three years preceding
June 30, 1917; and am entirely con.
| fdent that the congress will be dis
posed in this case as in others, to see
that Justice Is done and full security
assured to the owners and creditors
! of the great systems which the govern
ment must now use under it's own d.
rection or else suffer serious embar-
| rassment.
MeAdoo Well Qualified.
| THE secretary of war and ! are
| agreed that, all the circumstances be-
ing taken into consideration, the best
| results can be obtained under the i'm
mediate executive direction Of the Sec
i Rotary OF the treasury William G. NC
Adoo, whose practical experience pc
| culiariy fits him for the service and
! whose authority as secretary of the
treasury will enable him to co-ord.-
nate as no other man could, the many
financial interests which will be in
volved and which might, unless sys.
tematically directed, suffer very EN-
barrassing entanglements.
The government Of the United
States is the only great government
now engaged in the war which ha.
not already assumed <ontroi Of thh
sort. 1t was thought to be in tn,
spirit Of American institutions to ut
tempt to do everything that was nee
essary thru private management, ant
If zeal and ability and patriotic mot.v,
could have accomplished the necessar.
unification OF administration 1t woult
certainly have been accomplished
but no zeal or ability could overcom
insuperable obstacles and hav
} deemed 1t my duty to recognize tina
fact in all candor, now that it Is demon
strated. and to use without reserve tn
great authority reposed in me.
, great national necessity dictated tn
action and was therefore not at lib
erty to abstain from It.