The Knoxville independent. [volume] (Knoxville, Tenn.) 1894-current, 1918-01-05
Wilson's Assumption Of Control
of Railroads Is Long Step
Toward Efficiency.
GREAT POWERS FOR M'ADOO
Secretary Baker Prodded by Senate
ommittee-Teuton Peace Sug-
oestions Made by Count Czernin
In Reply to the Russian Boil
shevlki Proposals.
BY EDWARD w. PIcKARD.

The great event of the week, for the
United States and, indirectly for the
allied cause, was President Wilson's
action in assuming control of the rail-
ways and steamship lines within the
borders of this country. This step,
Mr.. Wilson said, had become fmpera-
lively necessary because this is q war
Of resources no less than Of men, and
In order that the resources of America
be completely modified the transpor-
tation systems of the country must be
organized and operated under single
authority.
This single authority is William G.
McAdoo, secretary Of the treasury,
who was appointed director general
because as the president expressed 1t,
"his practical experience peculiarly
fits him for the service and his author
ity as secretary of the treasury en-
ables him to coordinate as no other
man could the many financial inter
ests which will be involved" Mr.. Nc
Adoo assumed control at noon Friday.
Not only rail and steamship lines
are included in the presidents proc
lamation, but also all terminals, sleep
ing and parlor cars, private cars and
car lines. railroad elevators and ware
houses, railroad telegraph and tele-
phone lines and interurban electric
| lines carrying freight only. Stoekhold-
ers of railroads are guaranteed profit
equal at least to the average profits
! during the three fiscal years ending
June 80, 1917, which will be about 5.21
per cent on the capital investment.
Step Is Generally Commended.
General and hearty approval was
given President Wilson's action, alike
by railway officials, financiers and the
public. The first named gave assur'
ance Of their earnest cooperation with
Director General McAdoo, and In near
ly every instance declared their be
lief that the plan adopted would bt
entirely satisfactory. They had known
for some time that some such thing
must be done, for the committee o.
executives that has been in large meas
ure directing the operation of railways
though doing excellent and disinter
ested work, had been unable to solv'
the problem of equitable distribution
Of earnings. Complete unity of opera
ton will permit Of this, and will re
suit In more efficient conduct than ha
been possible heretofore.
1t is probable that under Mr. Nc
Adoo's direction, competition for earn
ings being eliminated, many competin
trains will be withdrawn and passer
ger traffic will be largely curtaile(
There will be a general shifting o
rolling stock and much freight equiv
ment will be sent to eastern terri
tory from the South and West to RI
lieve the congestion Of transportatio
of war materials. Naturally, every
thing else will be subordinated to tn
war needs of the nation. 1t Is not III
likely that passenger rates will b
raised to three cents a mile.
The one element Of the populatio
that may not entirely approve Of go
eminent control is the railway brofl
erhoods. Their opportunity to Ell
force by strike their demands for II
creased pay has vanished, though
is only fair to assume that their loya
ty and patriotism would not have pc
mitted them to- tie up the country
transportation. The heads Of ii
brotherhoods were called to the Whit
House to confer with the president o
their requests for higher wages. Tt
increases asked average about 40 Pc
cent. What the government will graz
! Of course Is not yet known. In tbl