Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-12-28

I.
Saturday with the members of the COM
mission on the stand.
While all boat lines and other possess
sions of the railroads go under federal
control simultaneously with the roads
themselves, interurbanS and street car
lines for the time are exempt Should
necessity arise, however, the president
will take these over also.
Biggest Step Of War
Federal railroad control, regarded as
the most tremendous war stroke the
president has yet made. will be promptly
followed by a series of economies in
systems, terminals, equipment and rev.
enues will be pooled and searching in
quiry started Immediately designed to
eliminate nonessential passenger and
freight traffic.
The president will devote the roads
primarily to actual war service. equip
ment not needed for this being the only
service which will be utilized for other
purposes.
Much of this has been accomplished
already under the direction of the rail-
roads war board This board will act
as the agency through which McAdoo
will direct the roads at least for the
time being. Fairfax Harrison is chair
man. and is expected to become per-
manent assistant of McAdoo's in the
work.
Today the president will take up with
the railroad brotherhoods questions OF
labor affecting all employees from the
engineer to the track walker. There are
pending demands for Increased wages py
employees and it understood some IN
creases will be granted Immediately.
At the same time demand of the roads
for increased rates and opposition OF
shippers to such increases are lnVolVeu
in the countless problems confronting
McAdoo in assuming control The presl-
dent through McAdoo can sweep away
for the period of the war all rulings by
the interstate commerce commission on
rates, service, etc. McAdoo will retain
the services of the interstate commerce
commission in an advisory capacity 10
assist in adjusting existing dlfncultles
To Protect Securities
The president acted to free the arteries
of trade There is expected to be an
immediate accelerating of men and sup
plies to the .seaboard, delayed during re-
cent months by the inability of the roads
to cope with the problem because OF
lac kof power.
BY his action also the property of
hundreds of thousands of American in
vestors in railroad stocks amounting to
more than 10000, 000, 900 comes under
the protection Of the government during
the war 1t is believed likely an order
will go out stopping trade in these stocks
temporarily until the furry Following
the government action is over.
Approximately 100000 railroad en-
ployes of all branches are taken into the
federal service under McAdoo.
Approximately $4,000 miles of rail-
road tracks come under McAdoo's su-
pervision.
From railroad presidents all over the
country today messages reached the
White House assuring the president OF
their full approval and cooperation In
the governments tremendous move.
.- May Increase Rates
Although the plan of control is not
outlined in detail, it was the opinion
that the British system would be fol-
lowed closely except in the matter of
paying for government freight. In
England the government freight is car
ried free, and the guaranteed earnings
require an enormous amount OF money
from government funds. In the United
States the government will pay its
freight and will stand increases II they
are found necessary.
Railroad experts estimate that the
government plan to guarantee earning
equivalent to average net operating IN
come of the last three years will cost
the government about $1O0,OOO,0oO next
year which can be raised by increase
in freight rates. In addition to this
cost the recent demand of the railroad
brotherhoods for a 40 per cent advance
i'm wages calls for answer from the
railroads on or before December 81, and
it is expected that the railroads Will
leave decision in this matter 10 the
government