The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1918-01-05

Secretary McAdOo Placed in
Charge of COuntry's Entire
Transportation System.
WILL UNIFY The COMPANIES
Change Takes Place at Once, But Di-
rect Management of Lines VIII
Remain as it Is.

Washington, Dec. 27.-Government
possession and operation of the ma
tons railroads for the war was pro-
claimed by President Wilson tonight
and became effective at noon Friday,
December %. William G. McAdoo, re-
tanning his place in the cabinet as
secretary of the treasury, is placed in
charge as director general of rail-
roads.
Every railroad engaged in general
transportation with its appurtenances,
including steamship lines, is taken
over and all systems will be operated
as one under the director general
In statement accompanying his
proclamation, the President an
nounced that as soon as congress re-
assemblies he will recommend legisla-
ton guaranteeing pre-war earnings
and maintenance of railroad proper
ties in good repair.
Government backing will be given
to new issues of railroad securities
that ready market may be found.
Direct Management Unchanged.
Direct management of the roads
officials and the railroads war board,
comprised of five railroad heads, will
continue to direct actual operation
under Secretary McAdoo's general
supervision
The chief practical effect of govern
ment operation will be to permit
complete unification of all rail sys-
TENS. impossible under private oper-
alton by reason of statutes prohibit
ing pooling of rail traffic and earn
ings. The roads themselves had gone
as far as they dared in this direction,
and it became known only today that
they had been warned by Attorney
General Gregory that violation of
anti-poOling laws could not be permit
ted.
Interurbans Exempted.
This situation was fully realized by
President Wilson, who, in his state
ment, declared the roads had gone as
far as they could, and that already
some systems were endangering their
earnings in attempting unification.
Although the proclamation applies
to all electric lines engaged in general
transportation local interurban sys-
TENS are specifically exempted.
Congress will be asked to guarantee
earnings equivalent to the average net
operating income of each railroad in
the three-year period ending June 80,
1917. Railroad experts estimate that
this will cost the government next
year approximately 100 million dol
lars, which can be raised in large
part by increased freights if the In
terstate Commerce Commission grants
the roads application for the fifteen
per cent rate increase now pending.
Otherwise it will be paid largely out
of the general government funds.
The Interstate Commerce Commits
sion and other government agencies
that have to do with the railroads
will continue to perform their func-
lions as heretofore.
Didn't Fail to Do Duty.
The President makes it clear that
his decision was not made because of
any failure on the part of the rail-
roads to perform their whole duty in
so far as they could while hampered
as they were by legal restrictions.
THE committee of railroad execu-
tives," said the statement, ''have done
3 the utmost that it was possible for
them to do, but there were difficulties
they neither could escape nor neu-
tralize. In mere fairness to them,
the full authority of the government
must be substituted"
Washington-The Presidents procla-
nation announcing the taking over of
the railroads follows:
by the President of the United States
of America.
Whereas, the Congress of the United
States in the exercise of the constitu-
tional authority vested in them, by joint
resolution of the Senate and House of
Representatives, bearing date April 6,
1917, resolved:
''That the state of war between the
United States and the Imperial German
government which has thus been thrust
upon the United States. is hereby form
ally declared; and that the President be,
and he is hereby authorized and directed
to employ the entire naval and military
forces of the United States and the re-
sources of the government to carry on
war against the Imperial German gov
eminent, and to bring the conflict to a
successful termination, all of the re-
sources of the country are hereby
pledged by the Congress of the United
States
And by Joint resolution bearing date
of December Z. 1917, resolved:
THAT a state Of war is hereby de-
clared to exist between the United States
Of America and the Imperial and Royal
Austro-Hungarian government; and that
the President be. and he is hereby au-