The Hartford republican. (Hartford, Ky.) 18??-1926, 1917-12-28
new SYSTEM no BE EFFECTIVE
w Ar NOON ON THIS
, DATE.
MAD0O NAMED AS HEAD
NC dent Outlines Plan tn Unity
Shipping in Proclamation, Com
' gross Ia Act.

|N " acAihENoH' btC' ~ bo'tl II
:5ment possession and operation of the
&nalion's railroads for the var was
x1roclaimed by President Wilson to-
<,night, to become effective at noon
Nliext Friday. December 2S. William
e. McAdoo. retaining his place in the
Cabinet as Secretary OF the Treasury,
is placed in charge as director gen
eral of railroads.
Every railroad engaged in general
transportation, with it's appurtenances.
including steamship lines, is taken
over, and all systems will be operat-
ed as one under the director gener-
, al.
In a statement accompanying his
proclamation. the President announc-
ed that as soon as Congress reas-
sembles he will recommend legisla-
ton guaranteeing pre-war earnings
and maintenance of railroad proper
ties in good repair.
Government backing will be given
VITO new issues OF railroad securities
that a ready market may be found,
n Action Is Great Surprise.
The Presidents move. although
forecast for weeks, came al this time
as a great surprise to nearly every
body in Washington, including rail
road officials. II had been general
" believed he would await the reas-
sembling of Congress before taking
any step. He acted through Secreta
~ of War Baker under authority con-
ferred 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 railroad heads. Will
continue to direct actual operation
under Secretary McAdoo's general SUI
peTvision.
The chief practical effect of the
Government operation will be to per-
nit complete unifcation of all rail
4 systems, impossible under private OPP
feration by reason of statutes prohibit
ing pooling of rail traffic and earn
ings. The roads themselves had gone
as far as they dared in this direction,
BAND IL became known only to-day that
they had been warned by Attorney
General Gregory that violation of
anti-pooling laws could not be per-
nitted.
"a This situation was fully realized
by President Wilson, who. in his
statement, declared the roads had
gone as far as they could and that
already some systems were endanger-
ing their earnings in attempting uni
tication.
Local Interurban Lines Exempted.
Although the proclamation APP
plies to all electric lines engaged in
<general transportation, local inter-
|urban systems are specifically exempt
bed.
ia Congress will be asked to guaran-
Nee earnings equivalent to the aver
Ebge net operating income of each
,failroad i'm the three-year period
Vending June 80, 1917. Railroad ex-
perts estimate that this will cost the
Movement next year in the neigh
Kborhood of 100000, 900, which can /
2be raised i'm large part by increased /,
Lfeights If the interstate Commerce
|Eommission grants the roads appli-
ton for the Is per cent rate in
{&fease now pending. Otherwise II
\ fill be paid largely out OF the gener-
~ Government funds.
XXI The Interstate Commerce Commits
Ion and other Government agencies
(&hlch have to do with the railroads
viii continue to perform their func- ,
\ ttons as heretofore, except that they
Twill be subject to orders of the diree-
tors of railroads.