The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1917-12-27

lieved he would await the re
taking any step. He acted tn
under authority conferred in tn
Direct management of the roads Will
remain in the hands of railroad officials
and the railroads war board, COM
posed of five railroad heads, Will con-
tinue to direct actual operation under
Secretary McAdoo's general supervision.
The chief practical effect of government
operation will be to permit complete
unification of all rail systems, impossi-
BILE under private operation by reason
of statutes prohibiting pooling OF rail-
traffic and earnings. The roads them
selves had gone as far as they dared
in this direction and it became known
only today that they had been warned
by Attorney General Gregory that
violation of anti-poolng laws could not
be permitted.
This situation was fully realized by
Pr -ent Wilson, who, in his statement.
declared the roads had gone as far as
they could and that already some sys-
TENS were endangering their earnings IN
i attempting unification.
AllnOuRn lH6 pTOCidIudtioil dPPllcS ~
all electric lines engaged in general
transportation. local interurban systems
are specifically exempted.
Congress will be asked to guarantee
earnings equivalent to the average net
operating income of each railroad in the
three-year period ending June 3d. 1917
TEXT OF PRESIDENTS
Rail, PROCLAMATION
The Presidents statement follows:
81 have exercised the powers over the
transportation system of the country
which were granted me by the act of
Congress of last August because it has
become imperatively necessary for me to
do so. This is war Of resources no
less than of men, perhaps even more
than of men, and it is necessary for the
complete mobilization of our resources
that the transportation systems of the
country should be organized and en-
ployed under single authority and
simpHfied method of coordination which
have not proved possible under private
management and control. The commit
tee of railway executives who have been
cooperating with the government in this
all important matter have done the ut
most that it was possible for them to
do; have done it with patriotic zeal and
with great ability; but there were diff
ficulties that they could neither escape
nor neutralize. Complete unity of adj
mlnistration in the present circumstances
involves upon transportation and many
points serious dislocation OF things, and
the mmittee was, of course. without
pow and authority to rearrange
chars or effect proper compensations
and adjustments. Several roads which
were willingly and with admirable pub
lie spirit accepting the orders of the COM
mittee have already Suffered from these
circumstances and should not be required
to suffer further. In mere fairness to
them the full authority or the govern
ment must be substituted. The govern
nenr itself will thereby gain an i'm
mense increase of efficiency in the con-
dnct of the war and of the innumeraple
activities upon which its successful con-
duct depends.
PUBLIC INTEREST
MUST BE SERVED
1.-THE public interest must be first
served and, in addition, the financial
interests Of the government and the
be brought under common direction.
The financial operations of the railways
need not then interfere with the borrow
ings OF the government, and they them
selves can be conducted at greater adj
vantage Investors in railways securi-
ties may rest assured that their rights
and interests will be as scrupulusly
looked after by the government as they
could be by the directors of the several
railway system. Immediately upon the
reassembling of Congress l 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 re-
pair and as complete equipment as when
taken over by the government and, Sec
ond, that the roads shall receive a net
operating income equal in each case to
the average net income of the three years
preceding June 80, 1917; and am entirely
confident that the Congress will be dis
posed in this case, as in others, to see
that justice is done and full security as
sured to the owners and creditors of the
great systems which the government
must now use under it's own direction or
else suffer serious embarrassment.
THE Secretary of War and 4 are
agreed that all the circumstances being
taken into consideration, the best results
can be obtained under the immediate
executive direction Of the Hon. William
G. McAdoo. whose practical experience
peculiarly fits him for the service, and
whose authority as Secretary Of the
Treasury will enable him to coordinate
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