New Britain herald., 1917-12-27
LARGE SALARIES
 TO BE CUT DOWN
Railroad Presidents Will Receive
 Approximately $10,o0o a Year RECEIVING OVER $6O,OOO

President Says Committee of Railroad
 Executives Has Done Its Utmost,
 But Authority of Government Must
 Be Substituted.
 Washington, Dec. 27.-One of the first acts of the government in begin ming operation of railroads will be to reduce large salaries now paid to the railway executives and increase in some measure the wages of the rail- way workers. .+
 Securities to be issued while the government is in control will be at in- terest rates not less than per cent. and the issues will be made under joint authority of the director gener- al and interstate commerce commits sion.
 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 se- curities.
 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 two hundred million dollars-for the im- mediate supply of rolling stock to handle the flood of traffic which has swamped the roads. . ...
 The director general will have ah- thority to decide whether the govern ment shall also assume operation and control of the express companies.
 Until MT. McAdoo outlines his plans the status of express companies under government operation of railroads will not be fully determined. Rolling stock, owned by the express compa- nies, which is comparatively little, will pass automatically under direct gov ernment supervision tomorrow, when the presidents proclamation goes in- to effect N . The status of the Railroads War board also is dependent on the di- rector-generaHs plan of organization. E The presidents of many large lines now receive salaries ranging from $50,OOO to $15O,OO0 @ year, and ono Of the first acts of the director-general probably will be to cut these sharply. Ten thousand dollars a year is being discussed as a maximum.
 The saving in salaries would be ap- piled to raising the pay of members of 1 the four railway brotherhoods, whose l officers conferred today with President Wilson, and aso Of other railway en- ployes unorganized.
 Under government control, every 1 effort will be made to interfere as Iit- 1 tie as possible with the personnel of the, companies, but 1t is considered inevitable that some employees will be cut off. The effect of government operation on drafting railroad employees for army duties is a question to be worked out. but it seems probable a large pro- l portion of the employees will be con- sidered too valuable in their present work to be drafted for fighting.
 One of the immediate effects of the new plan will be the re-routing of much freight now passing over con- gested lines, particularly in the East l Washington, Dec. 27.-Control ot d the nations railroads, to bring about uniform operation for the war, will be ] assumed by the government at noon Il tomorrow, with Secretary McAdoo
 still retaining his cabinet post, 1n
 charge as director-general of the railroads.
 This decision, the governments
 solution for the difficulties of the
 present transportation situation, wa<
 announced last night in a proclama-
 lion by President Wilson effective al
 noon, Friday, December 28, and talk
 ing over every railroad engaged il
 general transportation in continenta
 United States with its appurtenances
 including steamship lines. All line!
 will be operated as single system under Director McAdoo.
 In 3 statement issued with the for Emal proclamation, the president de
 clared he would ask congress as soo1
 as it reassembled for legislation guar anteeing, first that the railroAd prop critics would be maintained during thu , period of federal control in as goot |. repair and as complete in equipmen ! as when taken over by the govern ment. and second that the roads shal , receive a net operating income equa in each case to the average net incom 1 of the three years preceding June go 1917.
 Government backing also will b , given new issues of railroad securitie . so that a market may be read1l ! found .
 ! Railroad officials will retain direc : l management or the roaos anu LII ? Railroad War bord, composed of fly railroad heads will continue actua
 operation under Director McAooo = supervision
 The presidents action, take . +hroueh Secretary of War Baker un der authority of the army appropria I tions act of August, 1916, came as surprise at this time and it was be
 Heved he would await the reassem
 bling of congress and make know
 his decision in an address to that bod,
 Eventual government control Of rail Is roads had been forecasted, howeve