The midland journal. (Rising Sun, Md.) 1885-1947, 1918-01-04


eral
In a statement accompanying -
proclamation, the President am
nounced that as soon as Congress re-
assemblies he will recommend legis
lation guaranteeing pre-war earnings
and maintenance of railroad proper.
ties in good repair
Government backing will be given
to new issues of railroad securities.
that ready market may be found.
The Presidents move. although
forecast for weeks, came at this time
as a great surprise to nearly every
body in Washington, including rail
road officials. 1t had been generally
believed he would await the reas.
sembling of Congress before taking
any step. He acted through Secre,
tary of War Baker, under authority
conferred in the Army Appropriation
act.
Direct management Of the roads
will remain in the hands of railroad
officials, and the Railroads War
Board. comprised of five railroad
heads, will continue to direct actual
operation under Secretary McAdoo's
general supervision.
The chief practical effect Of Gov
eminent operation will be to permit
a complete unifcation of all rail sys-
TENS, impossible under private op-
Grafton by reason of statutes prohibit
ing pooling of rail traffic and earn
ings. The roads themselves had gone
as far as they dared in this direction,
and they had been warned by Attor
ney-General Gregory that violation
of anti-pooling laws could not be per-
mitted.
This situation was fully realized by
President Wilson, who, in Dis state
ment, declared the roads had gone as
far as they could and that already
some systems were endangerhg their
earnings in attempting unifk ation.
Although the proclamation
to all electric lines engaged in
transportation, local interurbaii j.
TENS are specifically exempted.
To Cost s1oo,0O0,ooo In Year.
Congress will be asked to guarantee
earnings equivalent to the average
net operating income of each railroad
in the three-year period ending June
80, 1917. Railroad experts estimate
that this will cost the Government
next year in the neighborhood of $780,
100000, which can be raised in large
part by increased freights, if the IN
terstate Commerce Commission grants
the roads application for the Is per
cent. rate Increase now pending. 9th
erwise it will be paid largely out 81
the general Government funds.
The Interstate Commerce Commits.
sion and other Government agencies
which have to do with the railroads
will continue to perform their func.
tions as heretofore except that they
viii be subject to orders of the Di.
rector of Railroads.
The President makes it clear that
his decision was not made because OF
any failure on the part of the rail-
roads to perform their whole duty in
So far as they could while hampered
as they were by legal restrictions
Express Companies Too.
Some doubt was felt as to whether
/ express companies are included IN the
Presidents proclamation. They were
not mentioned specifically, but the
President referred to every system oil
transportation and the appurtenances
thereof" This was generally interE
preted as including these companies0
whose business is so closely inter
locked with that of the railroads.
1t is presumed that railroads wi
apply direct to the Interstate Com
merce Commission or to the state
commissions, as in the past without
referring question Of rate increases ia
the Director-G General, although tht|
procedure will depend largely on It'd
scheme Of control to be worked a
hy Mr. McAdo0