The Washington herald., 1918-05-24
M'ADOO GUSTS
HIGH SALARIED
RAILROAD men
Biggest Shake-up IN His
tory of. American. Trans
v, portation. ss-s-

of the railroads Is under way. d.
rector General McAdoo has notified
The heads Of all the railroads now
under Federal control that their sery-
ices will no longer be required. SAM
uel Rea, president OF the Pennsyi-
vania lines, and Daniel Willard. pres
ident of the Baltimore and Ohio. are
two Of the best known rail heads
operating great systems who have
been relieved Of duty.
Announcement was made by the
Director General that after July /
the payment Of all transportation
charges will be put upon q cash
basis.
There are. several reasons behind
this order. Perhaps the most impor-
tant is to prevent discrimination be-
tween shippers and consignee. The
extending OF credit in the payment
Of transportation charges to one per-
son, while 1t Is denied to another,
results in a preference in favor Of
the person to whom credit is given.
Cash Order to Reduce Costs.
The order also is expected to bring
cash returns for services rendered,
with no possibility of bad debts, and
to reduce labor and expense in the
accounting departments Of the differ
ent railways.
Director General McAdoo yesterday
named two new regional directors. q.
l.. Winchall. director Of traffic Of the
Union Pacific Railroad, was appoint
ed regional director of the Southern
District, with headquarters at At
lanta. Ga. The appointment ID effec-
tive June ]. Mr.. Winchell will sue
coed c. H. Markham, who has been
placed in charge of the Allegheny Re-
gion located at Philadelphia.
N. D. Mahcr. president Of the Nor
folk & Western Railway. has been
named regional director of the Poca-
hontas Region, with headquarters at
Roanoke, Va.
Down Come Salaries.
1t IL probable that a number Of
railroad presidents will be named as
federal managers Of the property. but
in that event they will have to sever
all connections with the corporate
body and other corporate Interests. as
has been done by Mr.. Winchell and
MIR. Maher. who have been named re-
gional directors, and accept such sal
aries as MAJ be offered by the Direc-
tor General. These salaries, II is un-
derstood. will be in the neighborhood
Of 10000 to $4,000 a year.
The question of what is to become
of the big railway men who have
been drawing salaries of from $4,000
to 100000 and more a year. and other
high salaried men on the railroad pay
rolls. some of them engaged upon es-
sential work and others merely orna-
mental, is not one TO be decided by
the Railroad Administration. It is
presumed that they will 20 with the
corporate bodies Of the railroads and
systems, as presidents or
other high officers OF these bodies. In
that event their salaries will be paid
out OF the corporate funds.
Short Line Roads In.
Another important development of
the day presages the taking over of
the short-line railways by the govern
ment, bringing the entire railway
lines and equipment of the country
under Federal control. The Railroad
receive a fair division of trade and
the advantage Of the rates fixed by
the Railroad Administration.
1t is said that the new rule should
be interpreted by the public in a
practical business way. II, for ex-
ample. the consignee who is financial
ly responsible. is accustomed TO send
for his freight in the morning and the
N0lIarfinn Of ha
fected in the afternoon, that should
be treated as cash transaction SO
long as the consignee continues 10
pay his freight charge promptly upon
of the freight bill. Sim
liar application Of the rule should be
made in the collection of a prepaid
charge from a shipper. That is to
say payment of such a charge IL made
on the day the shipment is forward
ed will be treated as a cash transac-
ton.
Rail Suits May &c Over.
Director General McAdoo. in a spe-
cial order issued yesterday, directs
that upon a showing by the defendant
railroad or carrier that the interests
Of the government would not be Justly
served by the trial now of any suit
against the carrier, pending in any
county or district other than that
where the causes of action arose, that
such suit shall not be tried during the
period Of Federal control, provided
that the carrier valves its right to
later take advantage Of the statute of
This order Is binding upon the
courts. fnasmuch as it is declared to
be necessary in the present war emer-
gency.