The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1918-01-03
WAGE RAISE UP
TOGOvERNMENT
Railroad Men Check Issue Up to
McAdoo - Federal Own
ership Certain, They
Think.

Washington, D. c., Dec. 31.-The
railroads have definitely refused the
demands of their organized employees
for 40 per cent increases in pay and
have turned the responsibility entirely
to the government.
The railway executives here today,
in letting their decision be known, made
40 concealment Of their feeling that
government operation is step toward
government ownership, and made clear
they felt the public and the stockhold-
ers would demand it.
The railroad war board today di-
cected the operating committee OF
eastern railroads. with headquarters at
Pittsburgh, to remove Immediately to
Washington. to sit here with the board.
McAdoo Assemblies Staff.
Director General McAdoo spent to-
lay assembling staff of advisors and
executive officers to assist him in adj
ministering the railroads as a national
unit. He conferred with John Barton
Payne, counsel for the shipping board,
and Interstate Commerce Commissioners
Anderson. An announcement of pla rs
IS expected soon:
One of the. plans under considera ton
for handling railroad finances is the
formation of a government. corporation
under the director general Of railroads
to buy and market railroad securities.
Won't Press Demands.
At the same time it became Known
the railroads had refused the II other
hoods demands it was learned nat the
railway workers had decided not to
press their request for a per- of al
least 80 days or until it is cen just
what the railroad situation W i be.
The railroad brotherhood chiefs al
ready have assured the president that
under no circumstances wot Id they tie
nm tran Snorfa tioD while the wapa o1;es
ton was at issue.
Railroad executives here today ex-
pressing their feeling that the trans
portation system will never. go back
into private hands, gave two reasons:
First, they do not believe the stock
holders will agree to it with revenues
guaranteed under government opera
ton, and second, they believe that the
formation of continental railway
combination will make it impossible tt
go back to the old competitive system.
Plan for Financing Roads.
The corporation to handle railroad
securities probably will be provided il
legislation the president will suggest tt
congress. 1t would pass on all securities
proposed and would buy them as of
fered, holding them for sale when mar.
ket conditions were good. The corpora
ton also probably might be called OF
to finance railroad equipment. 1t ha:
talized at $1,000, 100000 since that is TIL,
sum the railroads estimate will b.
needed next year for the purchase O
new equipment and for bond and othel
issues. The railroad war board toda,
sent to the director general a list O
suggestions for improving traffic con
ditions in the east. The board also asked
Mr.. McAdoo for daily conference a
which problems affecting the roads ma,
be discussed.
The railroads war board went to work
on a general scheme of operation. A
few reports reaching here today told OF
first efforts by local railway officials
to haul freight by shortest routes as
requested by the director general in his
first telegram to railway heads
a cold wave accompanied by snow
in some localities probably would pre-
vent noticeable Improvement ir
freignt congestion under government
operation for week or more, officials
said.
1t was understood today that Mr.
McAdoo would use the various depart
ments OF the Interstate Commerce com