Five Mile Beach weekly journal., 1918-01-04
Wilson's Assumption of Control
of Railroads Is Long Step
Toward Efficiency.
GREAT POWERS FOR M'ADOO
Baker Prodded by Senate
Committee-Teutonic Peace SUD-
gestions Made by Count Czernin
: In Reply to the Russian Boil
shevIki Proposals.
BY EDWARD w. PIckARp.


The great event of the week, for the
United States and, Indirectly for the
allied cause, was President Wilson's
action in assuming control of the rail-
ways and steamship lines within the
borders of this country. This step,
Mr.. Wilson said, had become impera-
lively necessary because this is a wal
of nc less than of men, and
In order that the resources of America
be completely modified the transpor-
tation systems of the country must be
organized and operated under a single
authority.
This single authority Is William G..
McAdoo, secretary of the treasury,
who was appointed director general
because, as the president expressed it,
his practical experience peculiarly
fits him for the service and his author
ity as secretary of the treasury en-
ables him to coordinate as no other
man could the many financial inter
ests which will be involved" Mr.. Nc
Adoo assumed control at noon Friday.
Not only rail and steamship lines
are included In the presidents proc
lamation, but also all terminals, sleep
ing and parlor cars, private cars and
car lines. railroad elevators and ware
houses, railroad telegraph and tele-
phone lines and interurban electric
lines carrying freight only. Stockhold-
ers of railroads are guaranteed a profit
equal at least to the average profits
during the three fiscal years ending
June 80, 1917, which will be about 5.21
per cent on the capitalinvestment.
Step is Generally Commended.
General and hearty approval was
given President Wilson's action, alike
by railway officials, financiers and the
public. The first named gave assur-
ancs of their earnest cooperation with
Director General McAdoo, and in e
ly every instance declared their be-
lief that the plan adopted would be
entirely satisfactory. They had known
for some time that some such thing
must be done, for the committee of
executives that has been in large meas
ure directing the operation of railways,
though doing excellent and disinter-
ested work. had been unable to solve
the problem of equitable distribution
of earnings. Complete unity of opera
ton will permit of this, and will re-
suit in more efficient conduct than has
been possible heretofore.
1t is probable that, under Mr.. Nc
Adoo's direction, competition for earn
ings being eliminated, many competing
trains will be withdrawn and passen-
ger traffic will be largely curtailed.
There will be a general shifting of
rolling stock and much freight equip
ment will be sent to eastern terri
tory from the South and West to re-
lieve the congestion Of transportation
of war materials. Naturally, every
thing else will be subordinated to the
war needs of the nation. 1t Is not un-
likely that passenger rates viii be
raised to three cents a mile.
The one element of the population
that may not entirely approve of gov
eminent control is the railway broth
erhoods. Their opportunity to en-
force by strike their demands for In
creased pay has vanished, though it
is only fair to assume that their loyal
ty and patriotism would not have per-
mitted them to tie up the country's
transportation. The heads of the
brotherhoods were called to the White
House to confer with the president on
their requests for higher wages. The
increases asked average about 40 per
cent. What the government will grant
Of course is not yet known. In this