The Sentinel=record., 1918-01-01
,urdened might be used for the over-

burdened might be used for the over- flow.
 Director General McAdoo explained that there was no intention of aban- doning the system Of priority as di- rected by Robert s. Lovett, the war authorities board, that in the future those orders would be issued through the director general.
 For the present the eastern roads may disregard army and navy quar- termasters red tag" or preferential shipment orders, and Judge I.ovett's priority orders for government war shipments and food and fuel for cer- tain purposes, wherever yardmasters or other railway authorities believe this necessary to eliminate sluggish movement, The selection of prefer ential wares in switch yards in many cases causes more trouble than to move an entire train, and the director general believes that every class of shipments will move faster if the whole bulk of freight goes forward without priority.
 Railroad authorities will use their discretion, however, concerning the speedier movement of perishable ar- ticles, coal and any other materials which they may believe Iustifies be- ing put ahead.
 The committed of managers, headed by A. w. Thompson, which heretofore has supervised clearing of congestion in the east, is dissolved under Mir. McAdoo's orders today, but It's ma ehinery and functions are to be as- sumed by Mir. Smith.
 Some form of drastic action may be taken later against consignees who fail to unload shipments as quickly as possible, the director general ex- plained
 Curtailmont of passenger travel is planned by eliminating trains as fast as railroads can arrange. No general increase in rates. according to the plan adopted in England, is in imme- diate contemplation. Commuter trains will not be affected by the curtail- ment plans. Engine. released in this way will be put into freight service and trackage facilities and employees will be released for other use.
 To relieve New --ork terminals, 1t is planned to divert as much traffic as possible to Atlantic ports to the south. Means for accomplishing this will be studied by a committee con sisting of Major General Goethals. acting quartermaster general of the army; Captain Strother Smith, repre- sentihs the navy sopartment, Edward Carry, representing the shipping board: Edward Chambers of the food administration and Fuel Administra- tor Garfield. They expect to report to Mr. McAdoo within few days.
 Legislation to provide q basis of compensating railroads under govern ment operation and to authorize gov- ernment purchase of equipment to be leased to roads was completed today by President Wilson's legal advisers and was discussed by the president with Representative Sims, chairman of the house interstate commerce commission, who will introduce the measure in the house soon after the president delivers his address Thurs day In the senate the same bill will be introduced by the new chairman of the interstate commerce commits sion. Senator Smith, of South Caro- lima, and Senator Pomerine are con- testing for this honor.
 Joseph w. Folk, chief counsel for the interstate commerce commission. and John Barton Payne, counsel for the shipping board, who has been re- tained by Mir. McAdoo as legal aa wiser, will have charge of most legal questions arising under government operation of railroads. The railroads war board tonight gave out a final statement in the form of a report to the senate interstate commerce. com mission, attributing the recent conges- freight dumped upon the carriers by war industrial activities. Director General McAdoo tonight ordered rail- roads to close their accounts at mid night and open them tomorrow as of new year for government accounting purposes, as directed by the president in his proclamation. No change in accounting systems is required, he specified. This was issued as gen. eral order number two.