The Dermott news., 1918-01-03

| upon invitation of the Interstate Com | Herco Commission, has accepted of
 fees In the Interstate Commerce
 Building. The commission has also placed at the disposal of the director the entire work and facilities of the mission"
 Will Retain Judge lovett. It is considered probable that MT l McAdoo will retain the services of Judge Robert s. Lovette, director of
 priority for the war industries board.
 with whom he conferred at length
 and that railroads will be instructed to continue to receive orders from that source Another priority question to
 he settled soon is that of co coordination the preferential shipment instructions now issued by the fuel and food ad ministrations and army quartermast- CTS through a single government trans portation director, to supervise only government shipments.
 The director generals advisors have recommended creation of such an agency. emphasizing that the govern
 ment railroad administration must
 justify itself immediately by providing l for speedier transportation of coal 1 Mr. McAdoo is known to have given serious thought to the coal situation
 and to have received suggestions that
 a representative of the fuel admins
 tration be included in his staff.
 MT. McAdoo does not expect to ask an appropriation for administering government operation and his statf
 probably will be composed largely Of men already on the government or
 railroad pay rolls. He will receive no
 additional salary foi acting in the dual capacity of director general of rail
 roads and secretary of the treasury.
 It is expected he also will retain the
 services of the railroads committee
 which has been administering Ea
 equipment pool. with headquarters at Pittsburgh.
 The pending demand of the four
 railway brotherhoods for 40 per cent
 wage increase will be considered prob. ably in a month or two. along with the more sweeping question of higher
 wages for all employees, including
 those unorganizcd The director gen
 eral advisers will suggest that board
 of managers be appointed 10 thresh
 out general wage matters for his final
 consideration. A sharp reduction of
 high salaries now paid railroad prest.
 dents may help in small way to pro
 vide funds for wage increases.
 Guarantee Average Eearnlnss.
 If Congress follows President VII.
 sons recommendations concerning the
 guarantee of the average prewar earn
 ings it will oblgate the government to
 the extent of S91S.424.SS5, the aver
 age annual earnings of all roads for
 three years ending last June 30 Fig
 ures compiled by the bureau of rail way economies, an agency Of the com
 panics, show net operating income for the year ending June 90. 1915, aa
 S695, ,931 ,S6l; for 1916. s1.005l9@, 79i.
 and for 1912. sl,054,100.790.
 Congress might establish this basis ! of compensation, virtually the lease rate for the period of government ope- ration. but it could not compel any road to accept the terms, and com r panv would have recourse to thn , courts if it considered the rate too low
 This course is not looked for from many roads. however
 , Under the bill which officials have ' drawn for presentation to Congress . 1t would be provided that earnings ex n th . :. government. for general expenditure !, or as a special fund for railroad in, :. movements. Dividend payments woulc f be subject to supervision and approva 9 of the Interstate Commerce Commis l sion.
 j. Roads would make their own I'm
 provements under the plan and pro
 vide for their own bond issues, bu ( both would be under government su a. pervision. The size and interest rate l! on securities issues would be subjec | 10 the Interstate Commerce Commis Q sions approval and the rate by law Il would be limited to a minimum o
 four per cent and a maximum of six l. and one-half per cent. The presiden }. would be authorized to buy on gov ornment account any or all futur, a railroad bond issues, most of whlcl Il would be 10 provide additional equip Q Incnt or improvements, and thus th' ; necessary legal means would be pro J. lided for government financing of i'm l. provements. Such plan would auto i- ulaticdlly give the government powe
 10 regulate Improvements and to pre- q vent extraordinary and unnecessar. l. expenditures for such purposes. f May Build New Lines.
 t On the other hand, it is understood c 10 be Mir. McAdoo's intention to re y sort to construction of new lines O Il additional tracks on trunk lines. 1 7. this proves desirable to relieve con l. sestion. The administrations policie O along this line are expected to be viz
 orous in extending lines whereve tt needed for efficient prosecution of tn,