New-York tribune., 1918-05-22
Action Designed to
Make the Operating
Chiefs Responsible
to McAdoo
One Executive
Ousted for Cause
Huntington Is Charged
With Disobedience;
2 Minor Regional
Districts Fixed

y
road president in the United States was
relieved from active duty as executive
manager Of his road to-day by Director
General McAdoo, who will appoint a
Federal director for each road, respon-
sble only to the railroad administra-
ton. In many cases the president of
the road may be named Federal di-
rector.
To safeguard the interests of stock
holders and maintain the individuality
oi each railway Federal directors,
vhsnever possible, will be appointed
from among the operating officers of
tie property, the Director General an
nonnced. This will avoid disrupting
any roads working organization un-
necessarily.
Two New Operating Districts
As another step in the reorganization
of railroad management the Director
General ordered the creation of two
new operating districts-the Allegheny
region, consisting of the principal trunk
lines east of Pittsburgh, excluding the
New York Central, managed by c. H.
Markham, now regional director for
the South, and the Pocahontas district,
consisting of the east and west trunk
lines terminating at Hampton Roads.
1t was explained tonight that a
large proportion of present railway
presidents will be named to man.
age their own properties, particu-
iarly whenever the president act
ually is the most active operating
officer, but in all these cases the presi-
dents will be required to resign their
official positions with the companies
and to become exclusive representa-
tives OF the United States railroad ad-
ministration."
Consequently their salaries will be
receive no pay from the railway corr
poration. AS an indication of what
salaries they. may expect, it became
krown tonight that most of Mr.. Nc
Adoo's principal assistants of the rail
road administration will receive more
tnan $4,000 year. For most of them,
what they will receive will be much
less than they received as officers or
executives of railroads under private
management. In this connection it was
noted that Mr.. McAdoo as Secretary
OF the Treasury receives the usual Cab
met members salary of $4,000 a year
and rs paid nothing as Director Cen
eral OF Railroads.
McAdoo's New Policy
The Director Generals announce
ment OF the new policy, dictated from
MS s'ck-room at home, was as follows:
in view of the direct responsibility
ior the operation of the railroads Of
me country placed upon Director Cen
e1ai McAdco by the act of Congress
and by the proclamations of the Prcsi-
dent: he has been unable to escape the
conclusion that it will be advisable to
place In direct charge of each property
aor operating purposes representa-
i've to be known as the Federal man
sger, who will report to the regional
esifector. AS far as practicable, this
FEDERAL manager will be chosen from
sne operating officers of the particular
property, who are therefore entirely
iamiliar with its employees and with
ITS conditions.
To Keep Roads Identity
!. Except so far as may be necessary
n meet the emergency conditions
"nsch compel the government to take
Sohtrol of the railroads, the Federal
manager of each railroad will endcavor
70 avail himself to the fullest extent
=, the advantages incident to the opcr-
ason OF the particular railroad as a
anN and the preservation of its
.uehsity. This is believed to be OF
essential Importance, not only to Sc
surc best results during the period of
government control, but also to, give
~ ne greatest degree of reinsurance to
me Officers and employees that the rail
.osa careers upon which they have en-
.ssfed sssd will not be narrowed, but, if any
.snnlhg, will be broadened, and to give
q .ac greatest possible reinsurance to
me stockholders that their Just in.
ss1ests in the properties will be re.
spseted and that nothing will be need
sssoiy done to have even the appear
eHse Of impairing their Just rights.
while in this way the responsibility
ior the operation Of the property will
oirectly to the regional directors
:no not to the boards of directors, II
= snc purpose of the Director Genera
- accord to the boards Of Girccto !
nd their representatives the fullest
opportunity to keep advised as to the
spefation and improvement Of the
ksPefties and to maintain with the
aecfor General and the regional di
8; syssers the fullest interchange ot
sssMa az TO what is in the best intercsi
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