Evening journal., 1918-05-24
Willard AND REA
DROPPED BY N 'AD00
Pennsylvania and B. & 0.
Heads Called to Wash
inglon for Purpose
ELISHA LEE MAY
BE HIS SUCCESSOR

samuel Rea, president OF the Penn
sylyania Railroad. has been deposed as
operating executive OF that corporation
AT the behest Of Director General Nc
Adoo. Mr.. Rea was called to Wash
ington last Monday and told that his
services as operating head Of the Penn
sylysnia system were desired no longer
A similar notice at the same time was
given TO Daniel Willard. president OF
the Baltimore and Ohio Railroad
Elisha Lee, formerly Of Wilmington
IL mentioned as a likely choice Tor
Federal manager OF the Pennsylvania
system. ~,
So far as can be learned, the Di-
rector General advanced no reason Tor
his action The order was conveyed
through Walker D. Hines. assistant ol-
rector general. The two presidents VIII
give up the operating rens when
Charles II. Markham. newly appointed
director Of the Allegheny region, as
rumes control which may be any day.
n was generally believed Mr. hee
would be named Federal manager OF
The PENNSYLVANIA under Mr.. Markham.
The PENNSYLVANIA is the greatest rail-
way system In the world. and Mt.
pes,s long association with It's oper-
alton inspired q belief that the Govern
uent would retain his services.
As the matter was handled by MT
NcAdoo's assistant. the impression was
clearly impaired that neither name
would even be considered IN ule Sp-
pointment OF railroad managers
Though denied the authority 10 naNe
any say in the operation OF me rosu,
Mr.. Res Will continue 10 act as l
president In that capacity ne VIII iooN
after the interests OF the stochhoiue,s' -
That includes the management OF wy
income from the property oNheu ps
the system. Control OF the railroads .!
The Government has split the conuuc'
OF the business into two parts-ope,
stive and corporate. The Government
control extends only to the pnysioai
operation. Il has no authority 10 uis-
nose OF property owned by the oorp9l-
alton, such as income from seeurl1e'
or rentals from buildings.
While actual appointment OF MI. hea
ms corporate head OF the system mas
not taken place, iti 6 said TO De iore-
gone conclusion among Interests IN q
position TO know that the directors VIII
ratify this program at their next meet
The disbursement funds In the power
OF the Pennsylvania as a corporation
run from S5O,0Oo,0oo TO s55,Ooo,0OO an
nually. The annual rental the Govern
ment viii pay for the use OF the prop,
erty will approximate s4O,0OOoOO ana
The income from securities agsregate
more than SS22, 100000 in stocks ana
bonds OF other companies.
The salary OF the Pennsylvania presl-
dent will be considered by the direc-
tors when they meet 10 take official ac-
fIon on the new turn Of events. Gem
erally supposed to be $4,000, that VIII
ne reduced now that the executive IS
shorn OF a large part OF his dulles. BY
those who know Mr.. Rea personally II
ia believed he will insist on g reduc- |
ton as his private income 10 indepen-
dent Of his salary.
Of1cials at Broad Street Station were
unanimous In refusing 10 discuss tne
situation Yesterday. According 10 ad-
vices from Washington, however, the
story OF Mr.. Rea's fall from power is
BIT Of railroad history. A week ago
last Wednesday he started on an IN
spection trip over the lines or the sys-
tam. He received word In Pittsburgh
on Sunday to report TO Director Gem
eral MoAdoo on Monday morning on
an important matter.
Mr.. Res was there as specified. In
The anteroom was Daniel Willard, A
equally al sea regarding a similar sum
mons. A request for Mr. McAdoo
Hcsted the information that the drec-
or general was III and cold not see