Every evening, Wilmington daily commercial., 1918-05-24
R. R. LOSES
REA;; WILLARD IS
OUT OF B. & 0.
McAdoo Summarily Deposes
Heads of Two Big Rail
road Companies.
U. S. DIRECTORS IN CHARGE

Washington, May "a The biggest
shakc-up in the HISTORY Of the railroads
is under way Director General McAdoo
has notified the heads of all the railroads
and railroad systems now under federal
control that their services will no longer
bc required
Samuel Rca. president Of the Penn
sylvania lines, and Daniel WIZARD
president of the Baltimore " ohlo Rail
road, are two of the best known ran
heads operating great systems who have
been relieved of all connection with the
operating departments Of the two rali-
roads
In pursuance Of his plan to bring the
operation of the railways directly un-
der federal control through regional dl-
rcctors and federal managers, to take
the place Of the present operating heads
uf the RAILWAYS and their operating
statfs. Director General NeAdoo today
named two new regional directors
b L. NIuchcll. director Of traitlc ol
the mon Pacific Railway, was appointed
regional director of the southern district,
with headquarters at Atlanta, Ira he
appointment is effective june | and Nj.
Nlnchell will succeed 6 II Markham,
Who has been placed IN charge q tue
tlrgheny region, located AT fmiadeiphla
\ ID Nahcr. president of the Norfolk
Il Western Railway, has been named
regional director of the Pocahontas reg
ION, with headquarters AT Roanoke, Na.
OF greater interest than the changes
that Will be brought about II the per
SonneI az tile railway executive stats IL
the announcement Of the director general
Yesterday that on and after July neN
~ IN rtsA9t gh
viii he put upon cash basis
Whiting ot tie dismissal of Mr. Rca
and Mr.. Willard Samuel Barker N the
North American this morning says
Most summarily Samuel Rea has been
discharged As the operating head OF the
largest railroad system the world had
ever seen under corporate management.
He continues as president q the Fen
nsvlvanIa Railroad Co, responsible Tor
its corporate affairs and their conduct,
apart from the physical operations ot
the property, and still owing steward
SIP to the more than 100000 stockholders
who have faith in the integrity and
ability OF his management.
Daniel Willard president Of the Baltl-
more d Ohio Railroad SINH larly has
been relieved OF the operation OF that big
system.
Both Mr. Rea and Mr. Willard went TO
Washington last Monday, called there BY
telegranls sent 10 them by ". g. McAdoo,
director general Of railroads. Upon arrlv-
ing they were told that Mr.. McAdoo was
sick. They were then received by Walker
ID Hines formerly chairman Of the Atch-
ison, but nov asst stant director general OF
railroads
1T Was brief and cold audience, very
probably as disagreoable for Mr.. Hines,
who had the statement 10 make, Is Il
was humLtating to the two railroad
presidents
Mr. Hines did not waste words. He
informed the two surprised railroad
executives that the director general OF
railroads had determined TO relieve
presidents Of the United States railroad
under the government control from their
management. 70 appoint for each company
s federal manager who might be the same
man who has been president, and that
there would be created TWO new operating
regions all this rs gwen IN the public
statement which Mr.. McAdoo issued
the following evening. Mr. Hines tnen
informed Mr. Rea and Mr.. Willard that
each had been relieved from his duties
IS al operating railroad president.
That WAS all Of it No explanation Of
the action was offered none Was asked.
Operation Of the big Pennsylvania
railroad system, Us well Us its control,
has now been taken over by the govern
ment in effect, If not in name. As cor
porate head Of the Pennsylvania, which
he still retains, and Us to which the di-
rector general Of railroads has no say.
The action OF the director general Ia
cutting the Pennsylvania Railroad and
the Baltimore d Ohio Railroad systems
in half at Pittsburgh, goes to undo the
plans and measures which both com
panies have worked out laboriously
through legal and other obstacles during
years aiming 70 make traffic run smoothly
east and west without any artificial him
drance at the Pittsburgh gateway