Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-12-29
EVENTS OF THE WEEK

EVENl0 UF u WEEK
The news which attracted the greatest attention on
this side Of the water during the week was that of the
assumption Of control over all the railways of the Uni
ted States by the federal government. On Wednesday
the announcement came from Washington that at noon
on Friday. December 20, the president, acting under au-
thority conferred by congress. would take possession of
all the railroads in the country and would thencefor-
ward operate them as part Of the national war system.
The railroad business Of the country is now therefore,
In the hands of the government.
. .
In the same announcement the president named
the present secretary of the treasury, William A. Nc
Adoo. as the man who should act as director general of
railroads. and the understanding is that Mr.. McAdoo
will for the present. at least, retain his cabinet portfolio
and perform the duties Of the two positions. Mention
rs made Of John Shelton Williams. comptroller of the
currency, as Mr.. McAdoos probable assistant.
In taking possession Of the railroads the United
States government has done the expected. Every bel
lserent government has followed a similar course, and
1t has generally been supposed that Notwithstanding
various attempts at pooling in one form or another un-
der private management full governmental control
would be found necessary. The news was received with
expressions Of satisfaction by the heads of many of tho
roads. Presidents Hill. Of the Great Northern, and I'm
oe1WVou O1 Inc ETC expressed 1ul approval OF the act,
and the heads Of other great systems pledged hearty
cooperation with the government in order to make its
work a success. r
1t is somewhat interesting to note that the author
ity under which the president acted was not conferred on
him since the war began, but was given in an act of con-
Eress which was passed eight months before a state of
war was declared and at a time when it was still hoped.
and by very many people believed. that war could be
averted. Two subjects relating to the railroads had at
tracted attention. the critical condition of affairs on tho
Mexican border, with the possibility that a real Mexican
war might necessitate the prompt use Of our transnor.
tadon systems for the conveyance Of men and material
to and into Mexico. and the threat of a great railway
strike which would tie up the entire business Of the
country Just when the crops were ready to be moved.
It was. to meet this double emergency that authority
was given to the president to take over the railroads
for the transportation Of men and material necessary
for the defense Of the country. There was no strike,
and the Mexican crisis passed. but the bill had become
. law. and under its authority the president has acted
IN . war which was not then At all certain.
In the operation Of the roads use will be made Of
the. existing organisations. omcers and men will be
working for the government instead Of for the railway
corporations. Right Of way will be given to war ship
ments, and priority will be accorded after that to ship.
ments Of necessaries. Doubtless many trains will be
withdrawn, especially fast trains between great termin-
ala, OF which there is said to be an unnecessary number.
The operation Of many Of those trains has been unprof.
table to the roads running them. but they have been
continued as a matter Of corporate pride, and because
Of the stress Of competition. Excessive salaries. It Il
said, will be reduced, ana savings effected in this man.
nsr viii be used to give additional compensation to the
more poorly paid employees.
&#FS4EE@Ea- RS $50 ~ n @AT.-EEH#s ~
In the action Of the government there il nothing in
the nature Of the connscation Of property. The owner
ship Of the corporations and their members IL fully rae.
osntsed, and the dennite statement 10 made that the
property will be maintained In q good condition q II
nov IL. and that the government viii guarantee net
eArninss equal to those Of the past three years. The
estimate placed on this great change IL reflected in the
pfoeeedtnss OF the stock exchange IN New York since
y ~as announced Railroad stocks Immediately Jumped
severa1 points, and allied stocka advsnced in sympathy
slt has been quite clear for some time that under exist.
ins conditions, with searninss rsstrietsd and exp.n.sa
{ mounting, the p~fobisns of kespins 8 railroad out Of the
hands sf rsceiyer was bscomins n Increasingly d,facui,
heir ssseets ovnersE - no. A4niraA u some returns. Il
slAst vhi.s re ssysrnnsns = Ii control.
ssaSg
aestvssn 49, Aads germany AAxs sssap,4a attsnsaon
ast = sasssa = tAssr IN. .ossuss !. 1870 d. ~
SSeeeH 1Ass nSdta1 It'll ssndlns out 81 Aneshsrr sssiss
fa1tl.As sNrrs.S i psss.I "a ,oan,
ssS66e1fsSsks A142M 1assA nAls 3 Ksaaa, "a ito. ~
lllllsslSl teslErs alsle1ss tAs Asslls pss,s Mps 81. sss.1
#8aaSS##s$%g 6@@SssNA