New-York tribune., 1918-09-09
In First Report on Federal
ControlHe Tells of Salary
Cut Of 100000
But Says High Pay
Means Efficiency
Asserts Cars Reach Coal
Mines More Rapidly
Than They Are Filled

WASHINGTON. Sept. $. Govern
ment operations OF railroads for the
seven months ending August / are
reviewed in the first report of Director
General McAdoo to President Wilson.
The report, made public to-day. reveals
that salaries paid railroad executives
by the government are much lower than
received from companies under private
control. but they have not been pruncd
70 the comparatively small figures of
other officers in government service.
The seven regional directors of the
railroad administration get between
$4,000 and $4,000 a year each, and
Se,leral managers of individual roads
or systems amounts varying between
$1,000 and $4,000, although under pri-
yate control salaries ranged as high as
100000 for railroad presidents and
other executives.
Subortlinates Get More Than Chief
At the same time it is shown that
directors of the nine divisions of the
railroad administration are paid sal
aries between 100000 and S25, 900 each.
Mr.. McAdoo, their superior, receives
only the usual Cabinet members salary
of $4,000 as Secretary of the Treasury,
and nothing additional as Director Gen
eral of Railroads. Some assistant divis-
ional directors of the railroad admin
istraton are paid, at his direction more
than ne receives.
Of the 1926 railway officers receiv-
ing more than $4,000 under private
management, 400 presidents and other
officers have been removed from gov
ernment payrolls-t though they may
have been retained at company ex-
pense-and the s21 $4,000 paid officers
in the aggregate under private control
has been reduced to S15,062 900 by the
government.
Says Big Salaries Are Necessary
Explaining his policy of fixing sala-
res OF executives, the Director General
said:
at is not only equitable, but neces-
sary, that they should be Justly re
munerated. and that the reward of
brains. industry and loyalty should be
sufficient to continually attract able
men to the service of the railroads as
their life's work. 1t is not merely a
question of operating the railroads
during the period of the war. but it
IS question Of the post -bellum period
~ we'll, when railroad work must con-
tnue to be sufficiently attractive to
draw constantly to it men of the right
quality and calibre."
In reviewing accomplishments of the
government management. Mr.. McAdoo
laid stress on the railroad administra-
TONS efforts to move coal as fast as
.nin-s can produce it, and denied that
production was limited by lack of car
supply.
No Shortage of Coal Cars
cot late, cars have been supplied to
the coal mines more rapidly than they
have been able to load Them" he said.
and 1T is probable that adequate trans
Fortatlon Tor the fuel requirements
of the nation Will be available. provided
the coal production during the warm
weather can be maintained at point
that will fully employ the cars requisi-
toned.
"The country has been led to believe
that coal production is limited entirely
by transportation and that any short
age is que to the railroads. This is
erroneous. The maintenance of an
adequate coal supply depends in the
first instance upon production, which
in turn is restricted by shortages Of
labor and other causes aside from
transportation"
Up to August /, % 900, 900 more tons
Of coal had been hauled this year than
nd ..fl NJ
McAdoo reported.
Reforms and Economies
The Director General recited many
measures adopted under common man
agement Of rail lines for economies bv
eliminating competition, including clos
ing individual company ticket and traf
NC solcltaton Offices, arranging for all
lines to carry their own insurance. uni
lying the express companies. abolish
ing unnecessary passenger service and
consolidating terminals. He also re
forred TO increased efficiency through
shortening of freight routes. heavier
loading Of cars, stimulating prompt re
moval Of goods at terminals, standard
'zing designs for cars and locomotives
and other operating reforms.
1t was Imperative and just TO raise
wages. the report said. and consequent
~ necessary to advance rates % pei
cent Summarizing results obtained
Mr.. McAuOo said
Speaking generally, there is goo,
ground for believing that substantial
progress has been made in acceierat
ing the movement of traffic, employing
the available equipment more inten
sively and running trains more nearly
on time"
In conclusion. the Director Genera
said:
"A daily increase in facility and eff
cheney is noticeable, and am confdeu
that the railroads will shortly be il
condition to meet any demands tha
may be made on them if needed motiv,
power, already ordered can be secured
and if the necessary skilled labor i.
not withdrawn from the railroads 70
military and other purposes
"Oticials and employees have worke,
with such loyalty and zeal to accom-
plsh what has already been done. tha
il il genuine pleasure to max,
acknowledgement of their splendid work
1t is a constant satisfaction to be asso
clated with them"