New-York tribune., 1918-03-08
Government Will
Control Buying OF
Railroad Supplies
McAdoo CentYalizes pur-
chasing Of $2,00o,000,-
900 Of Equipment
Williams Heads Board
Three Regional Committees
Wsll Form Advisory
Body
Williams Heads Board

WASHINGTON, March T.-Partial
centralzation of the purchasing OF be-
tween $1,000, 100000 and $4,000, 900 900
ment this year under government SUI
pcrvision is involved in a plan for or
ganizing the railroad administration s
division Of finance and purchases, an
nounced to-day by Director General
McAdoo.
John Shelton Williams, as head of
this division, VIII be assisted by cen
trail advisory committee of three ex-
pert railway purchasing agents, and re-
glonaI purchasing committees will be
. created for the Eastern, Western and
Southern operating regions.
Wholesale Buying
Through the central organization will
be bought locomotives, cars and steel
rails, the principal big 4uanolty pur-
chases Of railways, end an effort will
be made rot only to cconomizc by
wholesale buying methods, but to
stancardizc equipment and supplies.
Coal and other fuel VIII be bought
manly by individual lines TO supply
their individual needs, but under the
supervision of the regional committees.
IN New England fuel is to be purchased
by special committee. Cross ties and
lumber are to be bought principally by
the roads along their own lines. but
may be ordered through the central
organization if they cannot be bought
IN the territory through which the road
passes.
"All other supplies needed for cur
rent operations will be purchased for
the time being says Director General
McAdoo's statement, "through the pur-
Of
roads, but all contracts for periods Of
SIX months or longer must be approved
by the regional committee before COM
pletion"
As fast as possible. all purchases
will be centralized, and the regional
committees are to draft recommenda-
tions for the accomplishment of this.
In addition, these three regional bodies
Will be expected to report details of
costs and contracts to the Railroad
Administration, with Il view to giving
all roads the advantage of efficient
methods which may have been devel-
oped.
Railroad Administrative officials
believe that eventually they can save
moro than q hundred million dollars
a year by centralized purchasing. al
though no definite predictions are made
Tor this year, owing to the necessarily
slo" progress OF organizing a nation
wide buying system.
Members OF the central advisory
committee and the regional commit
tees Will be appointed soon. All will
be practical purchasing agents or vice
presidents Of railroads. The REGIONAL
bodies, to be composed of three or
more, are to have headquarters res
pcctivcly in New York. Chicago and A.
lanta, and are to work in close coon
Grafton with the regional rail execu-
tive directors with headquarters in
those cities.
Financial Experts to Aid
In his capacity as director of finance
Tor the railroad administration Mr..
Williams also Will be assisted by an
other advisory committee of three rail
road financial experts one from tho
North, one from the West and one from
the South. These men VIII serve with
out pay and will help ain the work Of
investigating and providing plans to
meet the financial requirements of tho
railroads. whether these needs rclatc
to the taking up and renewing of ma
turing obligations and the issuance OF
new securities or providing for better
mcnts and additions"
MT Williams and his advisers will
admlnlstcr. IN general way. the dis
position of about $4,00O.00O 900, repre-
sentlng the gross earnings from onor-
allons IN year. In tho past require
ments for new capital to purchase
equipment and make betterments and
additions have been between $3.50.
100000 and S75000O00O a year. de
pending on business activity and money
market conditions.