Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1918-01-03
Every Railway and Steamship
Line to Be Operated Under
Federal Management Nc
Adoo In Charge.

Adoo In Charge.
Washington, Dec. 26.-Gov-
ernment possession and opera
tion of the nations railroads for
the war was proclaimed by Pres
ident Wilson tonight, to become
effective at noon next Friday,
December; %. William G.. Nc
Adoo, retaining his place in the
cabinet as secretary Of the treas
ury, is placed in charge as direct
or general of railroads.
Every railroad engaged in gen
eral transportation, with it's ap-
purtenances, including steam
ship lines, is taken over, and all
systems will be operated as one
under the director general.
In a statement accompanying
his proclamation, the president
announced as soon as congress
reassembles, he will recommend
legislation guaranteeing pre-war
earnings and maintenance Of
railroad properties in good re-
pair.
Government backing will be
given to new issues Of railroad
securities that a ready market
may be found.
Was Great Surprise.
The presidents move, although
forecast for weeks, came at this time
as great surprise to nearly every
body in Washington. including rail-
road officials. It had been generally
believed he would await the reas-
sembling Of congress before taking
any step. He acted through Secre-
tary OF War Baker under authority of
the army appropriation act.
Direct management of the roads
will remain in the hands Of railroad
officials and the railroads war board,
comprised of five railroad heads, will
continue to direct actual operation
under Secretary McAdoo's general
supervision.
The chief practical effect of gov
ztrnment operation will be to permit
q complete unification of all rail sys-
TENS, impossible under private OPP
erati6n by reason Of statutes prohib-
iting pooling Of rail traffic and earn
ings. The roads themselves had
gone as far as they dared in this di-
rection. and 1t became known only
today that they had been warned by
Attorney General Gregory that a vio-
lation of anti-pooling laws could not
be permitted.
Local Systems Exempt.
4 This situation was fully realized by
President Wilson, who, in his state
ment, declared the railroads had gone
% far % they could and that already
some systems we're endangering their
earnings in attempting unification.
Although the proclamation applies
TO al electric lines engaged in gem
eral transportation. local interurban
systems are specifically exempted.
win Cost 800, ,O0O, 900.
Congress will be asked to guaran-
tee earnings equivalent to the aver
age net operating income Of each rail-
road III the three-year period ending
June so, 1917 Railroad experts es-
timate that this will -cost the govern
ment next year in the neighborhood
Of 800. .000,O 90. which can be raised
In large part BY increased freights II
the Interstate commerce commission
grants the roads applicat ton for the
Is per cent. rate increase now pend
Ing. Otherwise twill be paid large
u out OF the general government
funds.
y The interstate commerce commits
sion ana other government agencies
which shavsSto do:with the railroads
viii continue 20 perfo their funcr
lions @ heretofore. except that they
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