The Washington herald., 1918-03-18
,MADOO'SSTAFF
RAIL EXPERTS
Holland Declares 900
Annually Small Pay for
Their Ability.

If Director General McAdoo fixes the
compensation for the members OF his
new stan at $4,000 each. presumably
the money will be paid out of funds
over which Mr.. McAdoo has control.
For Walker d. Hines, Carl R. Gray.
Edward Chambers and Robert s. Low
ett are reported to have withdrawn
from all association with the railroad
companies OF which they were for
merly executives and in addition to
that have parted with corporate or pTi-
vate interests with which they were
formerly identified.
~ Therefore the railroad companies or
the corporations presumably will not
pay the reduced salaries which Diree-
tor General McAdoo is understood TO
nave fixed upon as a remuneration for
these members of his stan. One at
least Of the stan has, II common I'M
derstanding be accurate, been recelv-
ing 100000 a year salary and has
earned 1t. Others have been receiving
10000.
II they accept $4,000 in lieu Of the
salaries formerly received from the
railroad companies they Will be con-
tributing annually from $4,000 in one
case to 5000 in other cases to war
service.
OReF Services.
Some of these men who were for
merly railroad executives are reported
to have offered their services to Mr.
. McAdoo without any compensation ex-
cepting the absurdly technical 81 a
year remuneration Mr.. McAdoo. how
ever. believed that public sentiment
and in fact common justice made it
exIedient for him to pay these men
salaries that. although low as COM
pared to their former compensation,
are nevertheless excellent.
II all of the new stan which has
been organized by Mr. .McAdoo were
to serve without any compensation
that would be done in accordance
d with the precedents established
years ago by the chief executives of
. some of the leading railroad COM
panies and in some instances, by the
presidents Of various industrial or
banking corporations
Custom. an unwritten law, so to
'ieall IL, was obeyed by several of
the great railroad executives of the
Emitted States with respect to sal
aries. For IL was believed that IL
a chief or important executive pos
sessed a large income, then he
might without injustice to himself
and his family direct without COM
pensatiOn the affairs of a railroad
company or a great corporation. On
the other hand. il a man began his
employment with a railroad COM
pany or a corporation at the foot of
the ladder and was exclusively oc-
Cupied with that vocation, then 1t
would be not only proper but vital
that he receive a salary proportion
ate to his service or position.
Many of the railroad executives
of the United States began at the
bottom. They were never occupied
with other matters than those as
sociated with their railroad serv-
ice. Some of them at last reached
the top. All OF these received re-
muneration because it was recog-
nized that they had no other means
of support.
They Took No Salaries.
ON the other hand, if any one be-
came associated with a railroad
company as chief executive or as
president who possessed a large in
come derived from other sources
than his railroad service. he was
likely to decline to receive rumu-
neFation in case the directors offer
ed IT,
The first instance of this kind was
the case of the late John NJ Forbes.
He promoted with his own funds and
with the capital which he persuaded
others to provide. the completion Of
the Michigan Central Railroad. bring
ing IT into Chicago. and the begin
ming of what became the Burlington
system.
For this service. which was of in
cOOceiya bile iu1DOrtanca IN the uaIfara