French Broad hustler. [volume] (Hendersonville, N.C.) 1916-1919, 1918-01-03
UNCLE SANS AIMS IN
OPERATING RAILWAYS
UNDER HIS SUPERVISION.

day approximately 100000 miles of
American railway systems silently
merged into one great continental
chain for the winning of the war.
der President Wilson's decision,
the great event, regarded by many as
the opening of a new epoch in govern
ment operation and control of public
utilities, passed by without any formal
ceremony.
Director-General McAdoo was con-
ferred at the time with the members
OF the railroads war board and Robert
S. LoVett, chairman of the priority
shipment committee.
The members of the war board-all
railroad executives who have been
working, within the Limitation of law,
TO do what the government itself now
proposes to accomplish, pledged their
support to the government adninistra-
ton Is has practically every railroad
man in the country. .
Mr.. McAdoo's first official order was
designed to pool all traffic, equipment
and terminals to relieve the conges-
SO" "ANS A10 644PpSu Xix COU11I1y
since the outbreak of fthe war. The
immediate result of the order will be
10 wipe out competition and re-route
trafnc over the shortest lines.
In a statement issued last night, Mr..
McAdoo said he had given almost no
thought to the personnel of his staff
but made it clear that until his plans
mature railroad operation will be
conducted through existing railroad
organizations"
{ Many members of house and senate
, predicted that the step was only the
beginning of government operation
control Nand that it would soon ex-
tend to telegraph and telephone lines,
&c rot. indeed. to the distribution Of
life's necessities.
McAdOO Studying Situation.
DiTector-General McAdoo spent the
day in intensive study OF problems
which must be solved at the outset.
President Wilson conferred with the
heads Of the four great railway broth
erhoods. 1t appeared probable that
tie latest demand for increases in pay
would be handled by a committee OF
managers to be appointed by Mr.. Nc
Adoo.
: Saving May be Billion a Year.
Some officials even estimate that the
saving will be a billion dollars a year
and that the government will be able
to garner revenue from the government
operation plan in addition to iEsuring
Tail~oad securities holders against
loss.
/ As to Mr.. McAd0O's Duties.
In his dual position Of secretary of
" -
railroads, MI. McAdoo would be in the
best position to pass on questions Of
securities and interest rates. 1t also
would be his duty to determine when
the government should purchase new
securities issued under his approval,
ard. this plan would prevent the rail
securities from interfering with flu
tnTe issues of Liberty bonds without
n~eccistatjng actual government finan-
cling of the roads.
The legislation which will be recon-
% led 20 congress would specify that
roads should remain subject to all eX-
. is.:ng laws and regulations of the In
t"Tstate Commerce commission. Those
! who have given careful thought to the
situation believe the director-general
will modify the existing order radical
~ at first, but eventually will DO far
toward centralizing authority under
the federal government.
Railroad Commissioners Give Support.
Association of State Railroad
, Commissioners will give full support
to the new pllI d I~AG do heir func-
tions are not reduced m~atcriaIlly, but
they are expected to pro--st against
being deprived OF adjusting minor
! Questions of rates and rules within
their territories.
Until Mr.. McAdoo outlines his plans
the status of express companies under
government operation OF railroads will
not be fully determined. Rolling
stock owned by the express companies,
which is comparatively little, will
pass automatically under direct gov
eminent supervision tomorrow when
the presidents proclamation goes into
effect.
=. Big Salaries of Presidents.
The presidents of many large lines
now receive salaries ranging from
$50. 900 to $4,000 a year, and one of
the first acts of the director-general
probably will be to cut these sharply.
Ten thousand dollars a e a is being
discussed as a maximum, although
these is no tendency to underestimate
their worth to the government in the
war emergency. Some railroad men
predicted that the officers would &C
Icept these reductions willingly in view
of the fact that they are virtually
i drafted for war work.
The savings in salaries would be
applied to raising the pay of members
o the four railway br~otherhoods,
whose officers conferred today with
President Wilson, and also of other
railway employees. The president was
expected to ask the brotherhood heads
20 give the fullest measure of support
to government operation and to leave
their pending demand for higher
wages for determination in the future.