Omaha daily bee., 1918-05-22
R. R. HEADS
ARE 0USTED
BY N 'AD0O
Director General Will Appoint
Federal Director for Each
Line, Responsible Only to
Administration.
(By Associated Press.)

Washington, May 2l.-Every rail-
road president was relieved from ac-
tive duty as executive manager of his
road today by Director General Nc
Adoo, who will appoint federal d.
rector for each road, responsible only
to the railroad administration. In
many cases the president of the rail
road may be named federal director.
To safeguard the interests of stock
holders and maintain the individuality
of each railway, federal directors,
whenever possible, will be appointed
from among the operating officers Of
the property, the director general an
nounced, This will avoid disrupting
any roads working organization un-
necessarily.
Creates Two New Districts.
AS another step in the reorganiza-
ton of railroad management, the di-
rector general ordered the creation Of
two new operating districts-the AL
legheny region, consisting of the prn-
cipal trunk lines east of Pittsburgh,
excluding the New York Central,
managed by c. H. Markham, now re-
gional director for the south, and the
Pocahontas district, consisting of the
east and west trunk lines terminating
at Hampton Roads.
Regional directors for the Poca-
hontas district and for the southern
district to succeed Mr.. Markham will
be appointed soon. A. H. Smith Of
New York will continue to act as
regional director for that part of the
east not included in the new Allie
cheney district, and district directors
viii be named to serve under him as
supervisors of roads in New England,
and for the section between Pitts
burgh and the Mississippi river, and
north of the Ohio river.
Y Other smaller operating districts
will be created from time to time in
the southern and western regions,
now operated as units by regional
directors of the railroad administra-
ton.
Failed to Obey Orders.
The first act of the director-gen-
eral today in executing this new pol
icy was the removal of c. w. Hunt
ington, president of the Virginian
railway, as chief operating officer, on
the charge that he failed to carry
out promptly the railroad administra-
tons instructions regarding the re-
pair and maintenance of his line.
This was thought to be the fore
runner Of similar deposition of num-
Der of railroad presidents, but an
nouncement of the plan for wholesale
replacement of railway presidents by
federal directors came as a general
surprise at this time.
1t was explained tonight that a
large proportion of present railway
presidents will be named to manage
their own properties, particularly
whenever the president actually is the
most active operating officer, but in
all these cases the presidents will be
required to resign their official posi-
tons with the companies, "and to be-
come exclusive representatives of the
United States railroad adminstra-
ton"
Salaries Will Be Reduced.
Consequently their salaries will be
paid by the government, and they can
receive no pay from the railway COR
poration. AS all indication of what
salaries they may expect, it became
known tonight that most of Mr.. Nc
Adoo's principal assistants of the
railroad administration will receive
no more than $4,000 year. For
most of them, this is much less th>n
they received as officers or executives
of railroads under private manage
ment. In this connection, it was no.
ted that Mr.. McAdoo, as secretary
of the treasury, receives the usuaI
cabinet members salary Of $4,000 a
year and is paid nothing as director.
general of railroads.