The Pulaskian., 1918-01-04

fees in the Interstate Commerce
 Building. The commission has also placed at the disposal of the director the entire work and facilities of the commission"
 Will Retain Judge Lovett.
 It is considered probable that MT. McAdoo will retain the services of Judge Robert s. Lovette, director of priority for the war industries board, with whom he conferred at length and that railroads will be instructed to continue to receive orders from that source Another priority question to be settled soon is that of coordination the preferential shipment instructions now issued by the fuel and food ad- ministrations and army quartermast- CTS through single government trans portation director, to supervise only government shipments.
 The director generals advisors have recommended creation of such an agency, emphasizing that the govern ment railroad administration must justify itself immediately by providing for speedier transportation of coal. MT. McAdoo is known to have given serious thought to the coal situation and to have received suggestions that q representative of the fuel admins tration be included in his staff
 Mir McAdoo does not expect to ask an appropriation for administering 1,te esfo fr probably will be composed largely of men already on the government or railroad pay rolls. He will receive no additional salary fol acting in the dual capacity of director general of rail- roads and secretary of the treasury. It is expected he also will retain the services of the railroads committee which has been administering the equipment pool, with headquarters at Pittsburgh.
 The pending demand of the four railway brotherhoods for a 40 per cent wage increase will be considered prob ably in month or two, along with the more sweeping question of higher wages for all employees, including those unorganized. The director gen. eral advisers will suggest that board of managers be appointed to thresh out general wage matters for his final consideration. A sharp reduction Of high salaries now paid railroad presi- dents may help in a small way to pro vide funds for wage increases.
 Guarantee Average Eearnings.
 If Congress follows President Will sons recommendation concerning the guarantee of the average prewar earn ings it will obligate the government to the extent of $918,424,o85, the aver age annual earnings of all roads for three years ending last June 30. Fig nres compiled by the bureau of rail- way economics, an agency of the com panies, show net operating income for the year ending June 30, 1915, as S695,931, ,S61; for 1916, 10O5,192,794. and for 1917, s1,054, ,100.79O.
 Congress might establish this basis of compensation, virtually the lease rate for the period of government ope- ration, but it could not compel any road to accept the terms, and a con- pany would have recourse to the courts if it considered the rate too low. This course is not looked for from many roads, however.
 Under the bill which officials have drawn for presentation to Congress it would be provided that earnings ex ceeding this basis would revert to the government, for general expenditure or as special fund for railroad inl- Dividend payments would be subject to supervision and approval of the Interstate Commerce Commis- sion-
 Roads would make their own i'm provements under the plan and pro- vide for their own bond issues, but both would be under government SUI peryision. The size and interest rate on securities issues would be subject 10 the Interstate Commerce Commis- sion's approval and the rate by law would be limited to a minimum of four per cent and maximum of six ftl1Q O1iS-ild1A pC1 NC11ts IC Pt CotQOhi would be authorized to buy on gov. ernment account any or all future railroad bond issues, most of which would be to provide additional equip lnent or improvements, and thus the necessary legal means would be pro vided for government financing of i'm Such a plan would auto give the government power to regulate improvements and to pre- vent extraordinary and unnecessary expenditures for such purposes.
 May Build New Lines.
 On the other hand, it is understood 10 be MT. McAdoo's intention to re- sort to construction of new lines or additional tracks on trunk lines, if this proves desirable to relieve con gestion The administrations policies along this line are expected to be wig orous in extending lines wherever needed for efficient prosecution of the economic forces behind the war.