Mexico Missouri message., 1918-01-10
U. S. TAKES OVER
ALL RAILROADS
President Wilson Assumes Con-
troll and Names McAdOo as
Director General.
ACTION TO SPEED WAR WORK
Roads viii Be Operated by Present
officials but as One system-con-
oress to Be Asked to Guaran-
tee Earnings.

ington.-President Wilson has
assumed control of the entire railway
system Of the country as q war meas
ure. The railroads will be controlled
and operated by the government under
direction of William G. McAdoo, secre-
tary Of the treasury.
Mr.. McAdoo's official title will be
director general of railways.
In taking over the railways Presi-
dent Wilson has followed largely the
plan adopted in England. The govern
ment will guarantee each road shall
receive a net operating income equal
to the average net income of the three
years preceding June 80, 1917. The
president In his proclamation further
assures stockholders and bondholders
In the railroads that their interest will
be scrupulously protected.
All regular dividends hitherto de-
clared will be paid and the maturing
interest upon bonds and debentures
will be guaranteed by the government.
Immediately upon renssembling Of
congress the president will ask for
legislation providing definite guaran-
ties upon these points and also provid-
Ing that the railways shall be main
tanned 'in as good repair and as COM
plete equipment as when taken over by
the government"
Facilities Taken over hy U. S.
Under the presidents proclamation
the following are taken under United
States control:
All railroads, comprising 100000
miles Of lines, valued at $17,000,000,-
600.
All coastwise, lake and river steam
ship lines.
All terminals, terminal companies
and terminal associations.
The Pullman company's sleeping
cars and parlor cars.
The packers and other concerns
private car lines.
All railroad elevators and ware
houses.
All railroads telegraph and telephone
lines.
The president also will ask legisla-
tion enabling him to solve the labor
problem of the roads.
The application for a wage increase
averaging 40 per cent is now pending.
/ The men have refused to accept COM
pulsory arbitration while the roads
were under private control.
This wage question, one of the most
serious problems that cOnfronts the
government in operation of the roads,
must be settled by Mr.. McAdoo.
The presidents proclamation states
he will take possession of the rail-
ways through Newton D. Baker, Sec
retary OF war. This emphasizes his de-
termination to run the roads strictly
as a part Of the military system.
War Department Can Handle Draft.
The fact that the railways are un-
der the war department will simplify
the matter of drafting men for work
| in case an extreme step should be.
come necessary.
The presidents advisers do not be-
lieve such measures will be needed
! The brotherhoods have demonstrated
their loyalty and are depended upon
/ to adopt action now that will guar
antee enthusiastic continued operation
of the roads.
In selecting Mr.. McAdoo for the
most powerful place in the admins
tration, the president Is known to have
been Influenced by the fact that Mr.
McAdoo has thorough grasp not onl.
of railway and government finance, bu
also of the worlds financial situation
Furthermore, one of the presidents ad
vlsers stated, he Is man who doe
things. He can cut through red tape
These two considerations pointed t,
the secretary of the treasury as tn
one to unite the transportation knot.
Power 10 Great.
The power placed in his hands 4
greater than any ever before given
single American other than a presl
dent.
He will take possession of ever
railroad and every system of transpor
tation located wholly or in part withil
United States boundaries. Street raj
ways alone are excepted. All steam
ship companies owned or controlled b
railroads, will come under his contrC
and operation.
) The present officers of the road
will remain in their places, but ca
be removed, or changed, at any tim'
by order Of the director general G
railroads His authority is paramour
even to that of the interstate cOmmerC
commission, which hitherto has fixe