White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1917-12-30
ALLRA|LROADST To
Be OPERATED
AS ONE

to bring about uniform operation for
the war was assumed by the govern
ment at noon Friday. with Secretary
McAdoo still retaining his cabinet
post, In charge as director-genera of
railroads.
This decision, the government So
luton for the difficulties of the pres
ent transportation situation, was an
nounced Wednesday in a proclama-
ion by President Wilson, effective at
noon, Friday, December 2S, and TAX
Ing over every railroad engaged in
general transportation in continental
United States. with its appuretnanees
including all steamship lines. All
lines VIII be operated as a single sys-
tenn under Director McAdoo.
One Of the first acts of the gov
ernment in beginning operation of
railroads will be to reduce large sal
aries now being paid to the railway
executives and increase in some meas
ure the wages of the railway workers.
Securities to be issued while the
government is in control will be at
interest rates not less than four per
cent and the issues will be made
under Joint authority 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 be empowered
to buy any quantity of new railroad
securities. All dividends over and
above an amount to be agreed upon
will go to the government.
Congress will be asked also to ap-
propriate a large fund-probably
5000 900. .000-for the immediate
supply of rolling stock to handle
the flood of traffic which has swamp
ed the roads. The director-general
will have authority to decide whether
the government shall also assume op-
Grafton and con troll of the express
companies.
Every railroad engaged In general
transportation, with its appurtenan-
ces. including steamship lines, Is
taken over. and all systems will be
operated as under the director gem
eral.
In a statement accompanying his
proclamation. the president announ-
ced that as soon as congress reas-
sembled he would recommend legis-
lation guaranteeing pre-war earnings
and maintenance of railroad proper
ties In good repair.
Government backing will be given
to new issues of railroad securities
that ready market may be found.
The presidents move, although
forecast for weeks, came at this time
as a great surprise to nearly every
body in Washington, including rail-
road officials. 1t had been generally
believed he would await the reassem-
bling of congress before taking any
step. He acted through Secretary of
War Baker under authority conferred
In the army appropriation act.
Direct management of the roads
will remain In the hands of railroad
officials and the railroad war board,
comprised of five Of the roalroad
heads, will continue to direct actual
operation under Secretary McAdoos
general supervision.
The chief practical effect of gov
ernment operation will be to permit
a complete unifcation of all rail sys-
tens. impossible under private opera
ton because of statutes prohibiting
pooling of rail traffic and earnings.
The roads themselves had gone as
far as they dared in this direction.
and II became known only today that
they had been warned by attorney
General Gregory that a violation OF
anti-pooiing laws could not be per- /
mitted.
This situation was fully realized
by President Wilson, who In mis-
statement. declared the roads had
gone as far as they could and that
already some systems were endans-
ering their earnings In attempting
uniflcation.
Although the proclamation applies
to all electric lines engaged In gen-
eral transportation, local interuros
systems are specifically exempted.
Congress will be asked to guar 1-
tee earnings equivalent to the avs'-
age net operating income OF eteN
railroad In the three-year period d .
ing June 30. 1917. Railroad espe Is
estimate this will cost the goveTa-
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