Arizona republican., 1918-01-09
OFFICERS AND EMPLOYES MUST MAINTAIN SERVICE
 AS PATRIOTIC VAR DUTY
IRepublIcan A. p. Leased Wir..l


 General McAdoo today addressed an appeal to railroad officers and en- ployes to do their utmost to maintain efficient railroad service as a patriot ic duty, sayiny every officer and employe is just as important a fac tor in winning the war as the mel. in uniform who are fighting in the trenches
 He promised to consider labor problems Justly and fairly and at the earliest possible moment" The rames of four members of the board to investigate the brotherhoods re- quest for more pay probably will be announced tomorrow.
 The railroad problem was the sub ject of hearings before the inter- state commerce committees of both the senate and house. Interstate Commerce Commissioner Anderson explained the purpose ar.d effect of the pending administration bill to the committee, while Julius Kruttschnitt, chairman of the board of the South ern Pacific, continued his testimony before the senate committee on the difficulties of railroads under private mana cement.
 Together with the labor phase of government operation the railroad administration today considered if nancial problems with which the government will be forced to dea shortly. From scores of roads came reports on estimated amount of ad- ditional capital to be raised this year by issue of securities.
 Special consideration was given to- | day to the financial straits of the Denver and Rio Grande railroad, which is threatened with receiver ship for failure to pay interest on l outstanding bonds. After a con- ference between John Barton Paynes, 1 counsel for the railroad administra- 1 tion, representatives of the road and of the Equitable Trust company, which has obtained a judgment of | $28,000,000 against the road. an agreement was reached by which the receivership will not be necessary immediately, and sufficient working | funds will be left the road to enable l it to meet it's payrolls and continue 1 operation. Eventually a receivershiI may have to be appointed, it was said.
 Commissioner Anderson, " h ( 1 framed the administration railroad bill, now before the interstate com merce committees of both houses or the stand today, explained that it is not intended that there shall be an, interference with state taxation oi railroad property by government op- eration. The government compensa- sation to all roads on the basis O. the standard return proposed, Il. said, would be s935, ,000, 900 a year the average net railway opera tint income for the three years endins last une 30. This compensation basi, is permissive, not mandatory, ant any railroad may er.ter suit for l; higher rate if it chooses.
 Mir kruttschnitt praised the worl of the railroad war board, now dis solved, in eliminating much compe
 tition and pooling railroad facilitie
 to a great extent under private con
 troll He said the results al.d the ne cessity of government control showe'
 emphatically that anti-trus and an
 ti-pooling laws will have to be re pealed.
 Senator Cummins asked Mir. Krutt
 schnitt about the advisability of bas ing the railroads compensation. O the market value of the stocks, whic opened a lengthy discussion of th value of securities. MJ. Krutt schnitt said the value of the stoc of the Southern Pacific had falle l 55 points in the last ten years an iIi that period the company put s400,
 100000 into the property, showin that the market quotations hay little or nothing to do with the in trinsic value of the property. Grain men of the country. Nil Kruttschnitt said were the slowest {
 comply with the war boards recon
 mendations providing for the heavie loading of cars. It was only afte ! Food Administrator Hoover who ha | the power and the railroads did no , issued an order providing that no car : of grain be handled unless fully load ed, he added, that a change wa ! brought about.
 I The appeal of the director genera
 to railroad officers and employe which will be posted within a fc'
 days at every railroad station, sho s and roundhoUse in the country, is a f follows:
 The government of the Unite
 (Confinued ou paoo TuoN