The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-03-27
RAILROAD CONTROL LAW.
CAPITAL EXPENDITURE RE.
STRICTED TO ABSOLUTELY
ESSENTIAL EXTENSION.
Director General Takes Step to Save
Money and Time as Soon as Bill
Providing Funds is Signed by Wood
row Wilson.

act or Director General McAdoo today
after President Wilson signed the
railroad bill which provides a $500,
900. 900 revolving fund and prescribes
a basis of compensation to the car
riers during federal operation, was to
issue an order restricting railroads
capital expenditure to extensions and
betterments absolutely essential under
war conditions.
The signing of the bill opens the
way for the railroad administration
to proceed with necessary extensions
with the negotiation of agreements on
compensation.
Without waiting for the bill to pass
the final stage of the presidents ap-
proval Mr.. McAdoo had created in
the railroad administration a division
of capital expenditures, headed by
Robert S. Lovett to supervise the reg
ulation of additions and betterments.
This division will scan all requests
for the building of new terminals, ex-
tension Of lines, purchase of locomo-
tives cars and other equipment and
all other enterprises requiring expendi-
ture of capital. Engineers Of the rail-
road administration will report Oh the
physical necessity of proposed better
ments before these are considered BY
higher officials. After being approved
by Mr.. Lovett and the director gener-
al. proposal involving capital expendi-
lures will go to the division Of finance
and purchases, headed by John Skel-
ton Williams for execution.
In his order today. Mr. MeAdoo
asked railroads considering extensions
to be guided by the war time neces-
sity for conserving capital, labor and
material. He specified that construc-
tion of new lines or branches and pur-
chase Of locomotives or cars should
not be undertaken without his ap-
prevail
Extension work begun or contracted
FOR before the government took con-
troll may be continued. No work in
volving charge of more than $25, 900
to the capital account may be started
without director generals approval,
but enterprises requiring less than
that amount do not require sspe-
cific approval. provided they are es-
sential.
Although Mr.. Lovett's division has
been organized only q week. he has
been besieged with applications for
extensions OF lines. Many Of these
come from commercial interests,
chambers of commerce or municipal
representatives.
Proposals of the railroad companies
themselves reached the railroad ad-
ministration several weeks ago in the
form Of reports on proposed budget
for 1918, which include outlines of ex-
tensions planned by the railroads be-
fore the government took charge.
These reports are being studied by en-
gineers and the regional directors, and
many suggested extensions will be dis
approved or pared down.
The railroad administration Is IA
vorably inclined, however, towards
the building Of better terminal facili-
ties in many cities and q general pol-
icy affecting these enterprises will be-
come apparent soon.
Early in August. 1916, the war
cloud was growing ominous, so an act
was passed empowering the president.
through the secretary of war; to take
control Of and utilize all systems OF
transportation in national emer
gency. President Wilson EMPLOYED
this authority on December 2S, 1917,
taking possession of the lines and an
pointing Secretary of the Treasury
McAdoO director general of railroads.
Engaged in a war requiring every
bit of national effort to insure sue
cess, the president believed it was i'm
perative that the government direct
all operations SO that adequate means
might be had to expedite troop move
ments, move war supplies and care for
the generally abnormal strain on the
transportation system.
The flow of khaki clad men had to
proceed to the ports of embarkation
without Interruption; shells, cart
ridges and rifles had to be moved from
munitions centers; foodstuffs had to
be transferred from the granaries of
the West, and ample provision had to
be made for the output Of the mines
In addition to military needs, the
country had experienced during the
winter of 1917 the greatest break