The Dawson news. (Dawson, Ga.) 1889-current, 1918-01-01
COUNTRYS RAILROADS
SEIZED BY PRESIDENT
SECRETARY MADOO BECAME
UNITED STATES RAIL DICTA-
TOR AT NOON FRIDAY.
TO GUARANTEE EARNINGS WILL
COST GOVERNMENT SlOO, 100000
All Railroads Engaged in General
transportation Will Be Operated
AS One Under Director General.
Freight Rates May Be Increased.

Freight Rates May Be Increased.
WASHINGTON, D. C.-Govern-
ment possession and operation of the
nations railroads for the war was
proclaimed by President Wilson to-
night, to become effective at noon
Friday, December 28th. William G.
McAdoo, retaining his place in the
cabinet as secretary of the treasury,
is placed in charge as director gen
eral of railroads.
Every railroad engaged in gener-
al transportation, with appurtenanc-
es, including steamship lines, is tax
en- over, and all systems will be oper-
ated as one under the director gem
eral.
In statement accompanying the
proclamation the president stated
that as soon as congress reassembles
he will recommend legislation guar
anteeing pre-war earnings and main
tenance of railroad properties 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.
No Displacement of Officials.
Direct management of the rail-
roads will remain in the hands of the
railroad officials, and the railroad
board, composed 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
complete unifcation of all rail sys-
TENS impossible under private opera
ton by reason Of statutes prohibiting
pooling of rail traffic and earnings
The roads themselves had gone as
far as they dared in this direction.
Congress Will Be Asked to Guar
tee Earnings.
Congress will be asked to guaran-
tee earnings equivalent to the aver
age net operating income of each
road in the three year period ending
June 80, 1917. Railroad experts es-
innate that this will cost the govern
ment next year in the neighborhood
of $100,000,000, which can be rails
ed in large part by increased freights
if the Interstate commerce commits
sion grants the roads application for
the Is per cent? rate increase now
pending. Otherwise it will be paid
largely out of the general govern
ment funds.
Scheme Follows British System.
The president makes it clear that
his decision was not made because
of any failure on the part of the
railroads to perform their whole du-
ty insofar as they could while ham
pered as they were by legal restric-
ton.
The plan of control as outlined in
the proclamation and statement leave
much unsaid as to details, but the
general scheme appears to follow
closely the British system. In Eng
land however, government freight is
carried free and the guaranteed
earnings required an enormous
amount of money from government
funds, while in the United States the
government will paw for its freight