The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-12-27
Transportation Problems Be-
come Too Great for Private
Control an d Government
Assumes Charge
. IMMENSE INCREASE IN
| EFFICIENCY ANTICIPATED
Last of Great Nations Now at
War to Substitute Public for
Private Control of Lines Of
Communication

Washington, Dec. @5,--4'Tcsl~
dent Wilson tonight issued B proc
lamation taking over tho opera 1
ton of the railroads of the coun-
try for the period of the war.
At the same time he announce
cd the appointment Of William
q. McAdoo, secretary of the treas
Try, as railroad dictator.
Government operation of the
roads. under the proclamation.
will start at noon Friday.
Immediately after congress re-
convenes January 3. The preSi-
dent will ~ before that body and
seek legislation TO enable tho gov
eminent to guarantee the inter
ests of security holders in the
roads and to carry out all inn
provements and betterTncuts dur
ing the period of government OPP
Grafton.
MFR. NcAdoo win retain his Of.
flee as secretary OF the treasury
The following statement by the
president explaining his action.
was issued.
Presidents Statement.
Il have exercised the powers over
the transportation systems Of the
country which were granted mo ~
the act Of congress OF August 1915.
because II has become lnrerativelv
necessary for me 70 10 so This is a
war Of resources no less than OF men
perhaps even more than Of men aud
II IS necessary for the complete mobi-
lization of our resources that tho
transportation systems of the country
should De organized and ernploved
uns eT a single authoritv and Il Is M
rlifed method or coordination which
have not proved possible under arf-
waite management ard control The
committee OF railway executives who
have been cooperating with the gov
eminent In this all-importa ~ matter
have done tho Utmost that u was
possible for them to do, have do~s it
I with patriotic zeal and with great
ability; hut there were difficulties that
they could neither ESCAPE nor neutral
TIE, Complete unity Of administration
In the present circumstances involves
upon occasion and at many points =
serious dislocatton Of earnings, and
the committee was. OF course, with
out mower or AUTHORITY 20 rearra n xe
charges or e~Pct proper comnensa-
tions and adiuxtn1 euts of earnings
Several roads which were willingly
and with admirable public snlrft ac-
cepting the orders ~ the cornmftte
have already suffered trorn these cir
c1mstaaces and should not ne reauIr-
ed 70 suffer further. In mere f1fruAss
to them the full authority OF the gov-
eminent must be substituted Ths
government itself will thereby gain an
immense Increase of efficiency in the
conduct OF the war and Of the trnurn-
srAhle acttvitfof upon which IT'S ana
ceSsful conduct depends.
Mnst Serve Public Interest FIRST.
The public interest must bs Grws
served and. IN addition the financial
interests OF the government and the
financial interests OF the railroads
must be brought under common dt-
rection, The financial operations Of
the railways need not then interfsra
with the borrowings or the xovern-
ment and they themselves can be con-
/ Quoted at greater ADVANTAGE In.
Vestors In railway securities may rest
assured that their rights and interests
VIII be as seTupuiously looked after by
ne government as they could be hy
the directors OF the several RAILWAYS
Immediately upon the reassembiing of
congress shall recommend that tnesa
denntte guarantees bs given: First, OF
course, tfst the railway properties will
lie maintained during the period of
the federal control In as good ronatv
and as complete equipment as when
taken over bx the government. and
second that the roads shall receive a
net operating income. equal I'M each
case 20 the average net income OF the
three years preceding June so. 1911,
and ] am entirely confident that the
congress viii be disposed IA thls case
as IN others, 10 see that Justice IL dona
and full security assured 20 the own
srs ana creditors ~ tina great systems
z NH III "a