Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-12-27
COMPLETES UNIFICATION
OF ENTIRE RAIL SYSTEM
Only Exception Made Relates
Specifically to Interurban
Organizations.
EARNINGS ARE GUARANTEED
Will Cost Government 100000, 900
10 Insure Net Operating In
come Provided For.
fRy Associated Pr.ssl

[ By Associated Press
: WASHINGTON. December 2s-Goy-
crnmcnt possession and operation OF
tho nations railroads for the war was
proclaimed by President Wilson TO-
night, TO become effective ~ noon next
Friday. December IS. William Il. Nc
Adoo. rc;aininE his place in the Ca binet
I as Secretary OF tho Treasury. Is placed
i'll charge as director general OF rail-
roads.
Every railroad engaged in general
transportation, with ita anpurtcnances.
/ including steamship lines is taken over
and all systems will be operated al
, ono under the director general
/ In Il statement accompanying hls
/ proclamation, tho President announced
I that as soon as Congress- rcasscmbles
J he Will recommend legislation guaran-
tccnS prc-war earnings and maintc-
nance OF railroad properties IN good
/ repair.
] Government backing will be given
/ TO now issues OF railroad securities
1 that ready market may be found.
The Presidents move, although fore
cast for weeks. came at this time A.
/ great surprise to nearly everybody
/ in Washington. including railroad oiIi-
cials, II had been generally believed
he would await tho rcasscmbling OF
Congress before taking any steps. He
acted through Secretary Of War Baker.
under authority conferred in tho army
appropriation act.
Direct management OF tho roads will
remain in the hands OF railroad OIL
cials and the railroads war board.
comprised OF five railroad heads, will
/ dor Secretary McAdoo's general super
vision.
CoMPLETE UNIFICATION
OF ALL RAIL SYSTEMS
The chief practical effort OF gov.
ernmcnt operation will be to permit
complete uniiication OF all rail sys-
tens. impossible under private opera
tion by reason of statutes prohibiting
pooling OF rail traffic and earnings
The roads them selves had gone as far
as they dared in this direction, and It
became known only to-day that they
had been warned by Attorney. General
Gregory that a violation Of antipoolinx
laws lid not be permitted.
Although the proclamation applies
TO all electric lines engaged in gem
cral transportation, local interurbau
systems are specifically exempted.
Congress will be asked TO guarantee
earnings equivalent to tho average net
operating income OF each railroad in
thc thrcc-Ycar period ending June so.
1917. Railroad experts estimate that
this Will cost the government ncS1
year in the ncighborhood of 500, ooc.
600, which can be raised in largo part
by increased freight rates. il tho In
trrStatr Commerce ice
the roads application for the Is pcr
cent rate increase now pending. Other
wise 1t Will be paid largely out or
the general government funds
I. {. c. NOW SUBJECT
TO RAILROAD DIRECTOR
The Interstate Commerce Commits.
H'oh ana other government agencies
which have to do with the railroads
viii! continue to perform tbcir f,,ro
iohS as heretofore, except that tbev
viii he subject to orders OF the di-
rector of railroads
The President makes il c,car t,.,
ms decision was not made bcc.,,x.
"i any failure on the part of the rail
roads TO perform their whole duty in
;" '"r as they could while hampercd
~ 'icE "crc by legal restrictions
nc pian OF control as outlined I,
'"c proclamation and statement leaves
'""'h unsaid as tc details but the GEN
'F'i scheme appears to follow cIose,v
'he hritish system. In England how
ever government freight is carried
'rec' and the guaranteed corni,ps -.
I"Ire an enormous amount or mo,,.,
from government funds: ,vhiic IN ~
hit'" states the government wtu nav
."r IT'S freight as in the past and r.,i,
stan" IT'S part OF increased -rc;-,.
tariffs il they arc found TO be ncccs-
Sary 'S'S
Aside from the Presidents s.at.n.,,
mere was no Comment in tho cani.,,
'"-h'sht on tho governments noy.
secretary McAdoo declined TO h. ono.ca
an" members %: the railro,ds' 60
o""r" SAID they would have no st,t..
,nen' 10 make until Tomorrow.
PROCLAMATION HEGINs ny
QUOTING WAR DECI.n.uo
III" presidential proclamation begins
ny quoting the congressional resol,,.
tons declaring a state OF wer IN c~,a,
Wilh Germany and Austria-Huprary.