Arizona republican., 1917-12-29
RAILROADS OF NATION PASS FORMALLY INTO HANDS OF 'UNITEllD[j;: 5. STATES WAR BOARD
rRepubIicsn AP. Leased Wirel

roads of the United states pdSSeu lllLC government possession at noon today as Secretary McAdoo, designated by President Wilson as director general ot railroads, was delegating to the rail- road war board the task of operating them for the present
 The war board, comprising five of the country's foremost railroad eXecu- tives who have been in supreme charge of the roads for the last nine months, was called into conference at II o'clock to discuss plans for welding all transportation lines into a single government operated system. They left the treasury department two hours later under instructions to continue their functions and to submit imme- diately a plan of operation to the di- rector general.
 Tonight MT McAdoo issued his first formal order designed to speed up freight movement, telegraphins all railroad presidents and directors in structions to move traffic by the most convenient and direct routes. At the same time he ordered them to continue operation of their lines in conformity with the presidents proclamation, put ting them under government control.
 There was no indication tonight whether MT McAdoo intended event ually to displace the war board with an organization of his own or to continue it's organization for the duration of the war. It was made clear, however. that it will continue to function until the director general decides that a better system can be devised.
 The order that freight move by the most expeditions routes opens the way for a pooling of traffic impossible heretofore by reason of statutes de- | signed to prevent the practice by car | riers operated under private direction. It takes from the shipper the right to route his freight as he wishes and leaves to the railroad traffic manager the task of sending it most directly and where there is least congestion. | Thus far the director general has made no plans for his staff, although it is considered likely that one of his legal assistants will be John Barton Payne of Chicago, now legal adviser to Chairman Hurley of the shipping board. He asked the war board today for d complete chart of its organization, l which was furnished.
 In drafting into service the war board organization the director general
 takes over the services of all the
 boards committees, including the op-
 erating committee of eastern railroads headed by A. W. Thompson of the Bal
 tinore and Ohio. He obtains the ser
 vices as well of the boards car service
 commission, which now is assisting thc
 interstate commerce commission is
 distributing cars.
 Pooling of railroad equipment, aI-
 ready started by the war board, will be carried much further under government
 operation. Common use especially will
 be made of terminal facilities.
 An early measure to relieve conges-
 tion, it was intimated tonight, will be
 a denial of transportation to non-es-
 sential commodities. Traffic that is
 considered unnecessary will be cut off , including both passenger and freight
 movement. Members of the war board pointed out today that the United } States is the only nation at war which IS attempting to move a great amount
 of war freight and at the same time asking its railroads to transport all commercial freight regardless of its inn portance
 This subject will be left largely to
 Robert s. Lovett, government director
 of priority, who attended todays con-
 ference. The railroad heads today told
 MT. McAdoo that there should be
 named immediately manager for gov f ernment traffic, who should recommend ? to MT. Iovett the order in which war f supplies should move, co-ordinating | the hundreds of priority orders now is 3 suing from various government de- partmentS.
 s There was a question tonight as to r whether the great mass of railway em-
 ployes ln the country-nearly 2,000 900
 In number-now become government | PmnlOVpS Snna nffioio lc hn1J
 they do not on the ground that the
 government in assuming control of the
 railroads is only superimposing it's au-
 thorlty on them and that as the roads
 are owned now as before by their
 stockholders railroad employees still are
 employees of the owners of the roads.
 Not only did members of the war
 board assure the director general of
 their fullest support of the government
 under the new arrangement but hun
 dreds of telegrams reached the treas ? liry department today from railroad . officers throughout the country prom
 ising cooperation.
 r. Railroad finances were touched on i, slightly at today's conference. Legis- 2 | lation to guarantee the railroads pre- r war revenues has been drafted along , the lines suggested by the president g -- proclamation. This will be introduced j | III bOIll lOuSco O1 SOlSlcoS WItn lllf U U president goes to the capitol to outline his recommendations for financial ar > engagements.
 There was considerable speculation j. today as to the governments policy : respecting the means of raising funds a to reimburse the roads if operating
 revenues under government contro t fall off. This can be done by paying the deficit out of the treasury or by . raising freight rates. The roads art t anxious that rates be raised. Theii n position is that if the properties art e run at a loss at the end of the wa e they will be forced to resume privat, d operation on a basis that will no h give them revenues enough to pay OK. tt
 Continued on Page Two)