The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-05-22
SOME TO HOLD
PLACES WITH
CUTSALARIES
HOldOvers Will Be "Manag.
ing Directors" Under
New Regime.
ONE BIG SYSTEM PLANNED
Regional Executives to Have
Full Authority-Stock-
holders Protected.
ONE BIG SYSTEM PLANNED

eral Mc.Adoo to-day relieved from duty
as executive manager the president Of
every American railroad. The remov-
ais 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 is con-
cerned. They will be under supervision
OF the regional directors. Where the
Federal directors are not the former
presidents they will be selected wher.
ever possible from operating onicials Of
the roads. This provision is made to
safeguard stockholders and preserve the
individuality OF the lines.
Under the new plan regional directors
and the Federal managers will be re-
quired to sever their official relations
with particular companies and become
exclusive representatives Of the railroad
administration.
Many Presiaents In Peril.
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 u
selected as Federal manager. In which
event he becomes an employe OF the
railroad administration. probably at q
much lower salary than he Is now re-
ceiying.
Announcement Of. tAe plan followed
close to-day upon the announcement that
& w. Huntington. president OF the Vir-
glnian Railway. had been removed as
opera,ing officer 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 to receive appoint
ment as Federal managers may still
hold office at the will Of the stockholders
or directors, but the salaries they are
drawing cannot be paid under Railroad
Administration rules from the operat-
Ing revenues Of the lines.
II such officers are retained the roads
retaining them must pay the salaries
from rentals received from the Govern
nient or from other sources Of income
tAan operation.
Presidents to Lose Jobs.
There are many presidents who have
never been considered as bona hde op-
erains officers. and It was FOR this
reason that Director-General McAdoo
drew the line OF demarkation on salary
payments.
Mr. McAdoo is reported TO have felt
ii many instances that he was not re-
ocN!ng full measure Of support and
cooperation from certain railway execu-
tive officers and that only BY having his
oAn representatives In charge OF the op-
Grafton o. each railroad could his plan
for absolutely welding the different
railroads OF the country into a COM
plet.ly unified general system be ac-
ooHp,ished. The step has been under
consideration for several months. and
has frequently been intimated in THE
So
Under the plan that has been in op'
eli.on until now the Railroad Admin
istra'ion has been supSrimposed on the
EXISTING railroad structure and railroad
presidents have had a divided allegiance
between the Government and the cor
po7a,ion represented by their board oi
ore tors and stockholders.
h While on the surface all has been
Harmonious, evidence has cropped ou'
from time to time that this was not con-
rbui,ug to the Government plan ol
making the railroads a single system
Many railroad presidents have appar'
emily found it difI1cult to readjust them
sel'e' to tho new conditions and lay
ASIDE the one that had always beer
foremost in their minds-the promotion
Of the best interests Of their own lines
To Pick Best Men.
The new order gives Mr.. McAdoo now
I" hance OF picking those railroad ex'
t'Itves whom he believes will lend
themselves wholeheartedly to the unih
eaton plan The others will be dropped
The hrst OF the new regions to bt
c-e2:c! a.o Gu: oF from the eastern
region under A. II. Smith. They are tt
be known AS the Allegheny region and
The focahontas region.
TIE Alleghany region will consist
broadly OF the Pennsylvania lines eas
OF and including Pittsburg and Erie
4 and o. east Of Pittsburg and Ohit
River, including Pittsburg terminals
be'semer and Lake Erie Railroad, Cum
berland Valley Railroad. Central Rail
road Of New Jersey, Coal and Coke Rail
road, Philadelphia and Reading. West
sFn Maryland Railway. Cumberland