The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1918-01-03
PRESIDENT TAKES
OVER RAILROADS
Names McAdoo as Director Gen.
eraI for All Lines in
United States.
EARNINGS TO BE GUARANTEED
Action, Which Affects Also cOsStwISe,
lake and River Steamship Prop
critics, Taken az 4 War
Measure.

NNacdASs
WashlE hlESton.-Presidtnt Wilson, |
under his war powers, has as
sumed possession and control Of all
the railroads and steamship lines with
In the United States.
The president issued a proclama-
ton invoking his war authority to
take over the railroads and appoint
ing Secretary Of the Treasury McAdoO
to the position Of director general Of
railways.
Mr.. McAdoo will remain secretary
Of the treasury, and In his dual role
will be the most powerful official in
the nation except the president.
The railroads will continue 10 be
operated by their respective corpora
tions under the direction Of Mr..
McAdoo, and the primary function Of
the lines will becUme the transporta-
tion of troops and war supplies and
materials, to which all other service
will be subordinated.
Properties Which Are Taken.
The properties that will pass into
AhC va NktC EONCl
All railroads, comprising 100000
miles Of lines, valued at $17,O00, ,OOO.-
600.
All coaStwIse, lake and river steam
ship lines.
All terminals, terminal companies,
and terminal associations.
The Pullman company's sleeping
cars and parlor cars.
The packers and otf er concerns pri-
vate car lines.
All railroad elevators and ware
houses.
All railroad telegraph and telephone
lines.
All interurban electric lines carry.
ing freight only.
Street Car Lines Exempt.
The president will not take over at
this time any street car or local pas
Benger carrying interurhan electric
lines, hut he provides in his praclHma-
tion that by subsequent order he may
take possession of any such lines
found desirable, including subwayS
and tunnels.
The proclamation does not specific
ally mention express companies, but
the language of the proclamation. In
which there appear the words. "Nnd
all other equipment and Oppurtenances
commonly used upon or operated as
part Of such system" would seem TO
include these companies.
Guarantee Of Fair Profit.
The government guarantees to the
stockholders Of each of the railroads
a profit equal at least to the average
profits of the road during the fiscal
years of 1915. 1916 and 1917.
Taking all Of the roads Of the coun-
try as basis, the general average was
S.2l per cent on their total capital In
Vestment
The president says that he will
ask congress to provide for the guar
Nntee of pre-war earnings to the own
ers Of the properties, and he ADDS
"Investors in railway securities
NAV rest assured that their rights ant
interests will be as scrupulOusly looked
after by the government as they could
be by the several railway systems"
McAdoo to Negotiate.
Director General McAdOO Is instruct
ed to negotiate with the railroads i'm
mediately agreements providing for
conversation to the owners Of TIL
properties amounting to the averag
net profit derived by each cOmpan,
during the three-year pre-war period
these agreements to be submitted t
the president for action In connection
with the legislation asked of congress
Bondholders and other security hold
ers are to receive the same return O
their investment they received durin
the pre-war period and other creditor
are to receive their due with right
unlmpaired.
The president takes possession q
the railroads by executive order unde
the authority conferred upon him by
provision of the army appropriation az
Of August %, 1915, which follows:
''The president In time Of war Is en-
powered. through the secretary or wa
to take possession and assume cOntrt
Of any system or systems OF transpo
tatiOn, or any puVC lhcEOOA' u"u
utilize the same. to the exclusion,
Ear as may be necessary. Of all Oth'
traffic thereon. for the transfer
transportation Of troops. war materi
and equipment, or for such other pu
poses connected with emergency
may be needful OF desirable"
Cut In PASSENGER Traffic.
The government will be required
provide the railroads with approx
mately $1,000 100000. It is estimate
for the expansion and building Of ne
terminals, extensions Of trackage al
additional rolling stock.
Government control will also cnt'
a general shifting Of rolling stock
the centers Of war industry to relie
the congestion Of transportation Of W
materials. Hundreds Of engines Al
thousands Of cars will be sent frc
western and southern roads to caste
territory. where 10 per cent OF
war supplies are being produced.
Passenger traffic Is scheduled 70
4 greatly curtaIled. On western roa