The Clio messenger. (Clio, Mich.) 1907-current, 1918-01-04
HUGE SUM NEEDED
FOR ROLLING STOCK
GOVERNMENT MAY BE FORCED TO
SPEND 100000, 900 FOR NEW
RAILROAD EQUIPMENT.
TRAFFIC WILL BE RER0UTED
Shipments to Be Sent Shortest Way
Large Salaries of Present Rail
Heads to Be Reduced.

Congress is expected
to appropriate huge sum, probably
500 900 900, for additional rolling
stock to handle the food OF traffic
which has swamped the railroads.
It is believed the government, by
eliminating wasteful competition and
unnecessary expenses under common
control, can save hundreds OF nail
lions of dollars in the operation OF the
roads.
Some officials even estimate that the
saving will be a billion dollars year.
One of the first acts of the govern
ment in assuming operation OF rail-
roads will be to reduce large salaries
now paid to railway executives and in
crease in some measurS the wages OF
the railway workers.
Presidents of many large lines now
receive salaries ranging from $4,000
to $4,000 year, and one OF the first
acts of the director general probably
will be to cut these sharply. Ten thou
sand dollars a year is being discussed
as maximum.
The immediate result of government
operation will be re-routing of traffic
over shortest lines, regardless of the
company with which shipments Origi-
nate and the common use Of terminals
to effect maximum efficiency. With
out anticipating wonders under the
new plan, officials look forward to
material improvement in the present
traffic congestion within few weeks.
Speedy movement of freight will be
the first aim of the director general.
He also has authority to decide wheth-
er the government shall also assume
operation and control of the express
companies.
On December &c, the president pro-
claimed the seizure of the rail lines at
noon Friday. December 2S, and their
operation by the government thereaf-
ter during the war William G. Nc
Adoo, retaining his place in the cabinet
as secretary of the treasury, was
placed in charge as director general
of railroads.
He acted through Secretary Of War
Baker, under authority conferred in
the army appropriation act.
Every railroad engaged in general
transportation, with it's appurtenances.
including steamship lines, is taken
over and all systems will be operated
as one under the director general.
In statement accompanying his
proclamation, the president announced
that he would recommend legislation
guaranteeing pre-war earnings and
maintenance of railroad properties in
good repair.
Government backing will be given
to new issues of railroad securities
that a ready market may be found.
Direct management of the roads re-
mains in the hands of railroad officials
and the railroads war board, compris-
ing five railroad heads, will continue
to direct actual operation under Secre-
tary McAdoos general supervision.
The chief practical effect of govern
ment operation will be TO permit a
complete unifcation Of all rail systems.
impossible under private operation.
by reason of statutes prohibiting pool
ing of rail traffic and earnings. The
roads themselves had gone as far as
they dared in this direction, and II be.
came known before the roads were
seized that they had been warned by
Attorney-General Gregory that viola
ton of anti-pooling laws could not be
permitted.
Although the proclamation applies
TO all electric lines engaged in general
transportation, local interurban sys-
TENS are specifically exempted.
The president has recommended that
the roads be guaranteed earnings
equivalent to average net operating
income of each railroad in the three
year period ending June 80, 1917.
Railroad experts estimate that this
will cost the government in the neigh
borbood of $100,00O,000 during 1918,
which can be raised in large part by
increased freights II the interstate
commerce commission grants the
roads application for the Is per cent
rate increase now pending. Otherwise
II will be paid largely out Of the gen.
eral government funds.
The railroad situation has presented
one of the greatest problems that has
arisen to puzzle those who are direct
ing for the United States the prosecu-
ton of the war. Government control,
now assumed by President Wilson,,
although not offering an entire solu-
ton for transportation perplexities,
will, many officials believe, go far to-
wards relieving many transportation