Evening journal., 1918-05-22
Railroad PRESIDENTS
OUSTED BY NJ 'AD00
Some TO Be Reappointed as
Managing Directors at
Lower Salaries
ONE BIG SYSTEM
IS PLANNED

WASHINGTON. May %. Director
General McAdoo has relieved from duty
as executive manager the president OF
every American railroad. The removals
Will be followed by the appointment OF
Federal directors for each company. The
prediction is made that in numerous
cases the president Of the road will be
appointed Federal director. Announce
ment was made that there also will be
named two new regional directors.
The Federal directors, who will be
placed IN direct charge Of each rail-
road, will be the official representatives
Of the Director-General. Each will have
full charge so far as operating ls con-
cerned. They will be under supervision
Of the regional directors. Where the
-cderal directors are not the former
esdents they will be selected wher-
arer possible from operating officials OF
the roads. This provision Is made 10
safeguard stockholders and preserve the
individuality OF the lines.
Under the new plan regional direc-
tors and the Federal managers viii be
required 10 sever their official relations
with particular companies and become
exclusive representatives Of the rail-
road administration.
In addition the territory under direc-
tion OF Regional Director 4. II. smith In
New York, which Is cut down by the
creation OF two new regions, is to be di-
vided into districts with district direc-
tors under the regional directors.
In effect, the new plan provides that
every railroad president in the United
States whose road is under Government
control will cease TO be the active Op-
Grating head Of the road unless he is
selected as Federal manager, in which
event he becomes an employe OF the
railroad administration, probably at a
much lower salary than he is now re-
ceiying.
Announcement OF the plan followed
close upon the announcement that c.
w. Huntington, president Of the Nir-
ginian Railway, had been removed as
operating offlcer OF that line for dis
obedience Of the Railroad Administra-
tons orders.
The railroad presidents who Will be
removed as operating heads OF their
lines through failure 70 receive ap
polntment as Federal managers may
etill hold Office at the will Of the stock
holders or directors, but the salaries
they are drawing cannot be paid under
Railroad Administration rules from the
operating revenues Of the lines.
II such officers are retained. the roads
retaining them must pay the salaries
from rentals received from the Govern
ment or from other sources OF income
than operation.
The first Of the new regions TO be ere,
sted are cut of from the eastern re
gion under A. H. Smith. They are To-
Be known as the Allegheny region and
the Pocahontas region.
The Allegheny region Will consist
broadly OF the Pennsylvania lines east
OF and including Pittsburgh and Erie,
B. and o. east Of Pittsburgh and Ohio
River. including Pittsburgh terminals,
Bessemer and Lake Erie Railroad, Cum
berland Valley Railroad, Central Rail-
road OF New Jersey, Coal and Coke Rail
road. Philadelphia and Reading. West /
ern MARYLAND Railway, Cumberland and
Pennsylvania and Pittsburgh and Lake
Erie.
This region will be placed in charge
OF c. II. Markham as regional director, |
lir. Markham has resigned his connec-
tlons with the Illinois Central and other
companies and will have Offices in phil
sdelphla. i
The Pocahontas region viii consist OF
the Chesapeake and Ohio Railway east /
Of Columbus, Cincinnati and Louisville, |
the Norfolk and Western Railway ana
The Virginlan Railway, sincluding the
terminals OF all lines at Hampton Roads.
with the exception Of the Allegheny /
and Pocahontas regions, the Eastern
region will remain as originally defined |
with Mr.. Smith regional director. Dis
trlct directors under Regional Director
Smith will be appointed for New Eng
land and for that portion Of the Eastern (
region west Of Pittsburgh and the ohio /
River and south Of the Erie main line.
Selection Of the regional directors FOR
the Pocahontas region and for the
region to succeed Mr.. Mark
ham. and for the two new district d.
rectors under Mr.. Smith, will be an
nounced later
A division Of the other two big rail-
road regions, the Southern and the J.