New-York tribune., 1918-05-22

railway corporation, which is required
TO pay his salary out of corporate
Iuhds furnished by the government as
compensation for use of the road
rather than out of operating funds.
Mr. Young, the new manager, is
given fun authority to manage the
road, even to the extent of changing
'he personnel of operating officers.
When railroad administration oft
Gals heard of statement hv Mr
Huntington issued in New York thev
SIMPLY said they wished to enter into
n" controversy with him and were con.
tent to stand on their announcement
that nc had been removed for NOT
carrying out orders.
More Efficiency Sought
Since government operation of rail.
roads started nearly five months apo
L1rector General McAdoo has consid
cred the advisability of taking the ac-
I've management of the roads out of
'ne hands of company pres idents. MANY
OF whom arc financial and corporate of
hcers rather than operating executives
Since the railroad administration is
concerned primarily with efficient on
erations. 1t was felt that closer rela-
''ohs might be maintained if DEALINGS
were direct with the officer who actual.
work. oPei a''hg
Although most railway presidents
nave given full cooperation to the rail.
euaa aominis tration. it has become in
,SreaSlngiy evident that many of them
sau dlnlculty in breaking away from
roaas ,,s' 'ie'nods of managing their
,,,;tt as II !hey still were competing
WIN oIher lines, it is said. This was
noticeable to some extent in tho rnf,sa,
OF executives to route traffic over the
snnor'er routes, regardless of owner
snip OF llnes. and to throw open ter
minal and other facilities to common
-, railway presidents who now MANAGE
.he'r own operations and who have
good relations with the railroad sd
lnlh'stration will be retained in most
uses ~ is announced. The vice-presi-
oeme VINO is general manager will be
1TTlnsioered Tl the next most logical man.
me me appointment Of Federal directors
VIII oe made as quickly as possible, and
nno, an.an .'me tne present method of man
asement Will be continued. Recon-
1mendatlons of regional directors vii,
De sought in all cases.
Will Save Great Sum
The elimination of presidents as
operating officers will have the effect
OF cutting off allowance of their sal
ares from operating revenues and com
pei companies to pay the Salaries from
the funds they get from the govern
menf as compensation for lease of their
roads, or from other sources of rail
way income. Presidents salaries now
run as high as 100000, it is under
stood, and many receive between S4O.-
600 and $4,000. The railroad admins
tratlon is not expected to pay more
than $4,000 to any one. This will save
millions of dollars and viii be in line
with the railroad administrators pre-
vlous action in cutting the salaries of
chairmen of boards of directors and
expenses of maintaining financial and
corporate Offices from the operating ex-
penSe accounts.
The expenditure of nearly a billion
dollars for improvements. equipment
and extensions this year will be largely
IN the hands of the Federal directors
to be appointed. About 200 railroads
now are under government manage
ment, and approximately this number
OF directors will be appointed.