The Springdale news., 1918-01-04
GOVERNMENT IS VOW OPERATING RAILFOADs
All Railroads Throughout tx toun- try Now Being Operated al ~ Change Made Last frida'
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last Friday. December 28, at one : clock. and will be operated " 'he Government under the directoh el Secretary of Treasury MeAdoe II ls said this change will greatly lessen the cost of operation, In that many men drawing big salaries for llliihg nositions that are not neeessay VII ha dispensed with, and at the same lime the needs of the countryin the way of transportation will be better cared for. The railroads thenselyes apparently welcomed the innovation, and all railroad stocks adVaneei as q result.
 Presidents Statement.
 Concerning the taking over q the railroads President Wilson made pub lie the following statement:
 have exercised the powers over the transportation systems of the country which were granted me by the act of Congress of August, l9l6, because it has become imperahVely necessary for me to do SO This IS war of resources no less than of men perhaps even more than of men. and 1t is necessary for the complete nobll- ization of our resources that the tians- portation systems of the country should be organized and employed un- der single authority and simpiied method of coordination which have not proved possible under private management and control. The e9na- mittee of railway executives who have been cooperating with the GoVgn= ment in this all-important mater have lone the utmost that 1t was p9s sible for them to do; have done 1t with patriotic zeal and with great abilty; but there were difficulties that tfey could neither escape nor neutralHe. Complete unity of administration in the present circumstances involves up on occasion and at many points q ser ious disIoeatien of earnings, and the committee was, of course. without power or authority to re-arrange charges or effect proper compensa- tions and adjustments of earnings Several roads which were willingly and with admirable public spirit ae- cepting the orders of the committee have already suffered from these CT cumstances, and should not be reqar- cd to suffer further In mere far ness to them the full authority of tie Government must be substituted The Government itself will thereby gain an immense increase of efficiency n the conduct of the war and of the in- numerahle activities upon which Its successful conduct depends.
 Public Interests First Served
 The public interest must be first served and, in addition. the financial interests of the Government and the financial interests of the railways must be brought under. a common di- rection. The financial operations o1 the railways need not then interfere with the borrowings of the Govern ment, and they themselves can be eon- ducted at a greater advantage. Invest ors in railway securities may rest as sured that their fights and interests will be as scrupuiouslv looked after by the Government as they could be by the directors of the several railway systems. Immediately upon the re- assembling of Congress I shall recom- mend that these definite guarantees be gwen: First, of course, that the rail- way properties will be maintained dur ing the period of Federal control in as good repair and as complete equip- ment as when taken over by the Gov ment, and second, that the roads shall receive a net operating income equal Tn each case to the average net income of the three years preceding June 90, l9lf; and am entirely confident that the Congress will be disposed in this ease, as in others, to see that justice Is done and full security assured to the owners and creditors of the great systems which the Government must how use under it's own direction or else suffer serious embarrassment.
 Selection of Mir. McAdoo.
 The Secretary of War and I are agreed that, all the circumstances be- Ing taken into consideration. the best results can be obtained under the im- mediate executive direction of the non. William c. McAdoo, whose prac- .icai experience peculiarly fits him TOT the service and whose authority as secretary of the Treasury will enable nm to coordinate as no other man could the many financial interests "hicn will be involved and which iihghe' unless systematically directed, 'ui1er very embarrassing entangle- ments.
 The Government of the United