The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1918-01-03
u. S. TAKES over
ALL RAILROADS
President Wilson Assumes Con-
troll and Names MCAdoo as
Director General.
ACTION TO SPEED WAR WORK
Roads VIII Be Operated by Present
Officials but as One System-Con-
qress to Be Asked to Guaran-
tee Earnings,

WaShngtOn.-PreSi wilson mas
assumed control of the entire railway
aystem of the country as a war meas
ure. The railroads will be controlled
and operated by the government under
direction Of William G. McAdoo, secre-
tary of the treasury.
Mr.. McAdoo's official title will be
director general of railways.
In taking over the railways Presi-
dent Wilson has followed largely the
plan adopted in England. The govern
ment will guarantee each road shall
receive net operating income equal
to the average net income of the three
years preceding June 80, 1917. The
president in his proclamation further
assures stockholders and bondholders
in the railroads that their interest will
be scrupuously protected.
All regular dividends hitherto de-
clared will be paid and the maturing
interest upon bonds and debentures
will be guaranteed by the government
Immediately upon reassembling Of
congress the president will ask for
Legislation providing definite guaran-
ties upon these points and also provd-
ing that the railways shall be main
tanned ain as good repair and as COM
plete equipment as when taken over by
the government"
Facilities Taken over by U. S.
Under the presidents proclamation
the following are taken under United
States control:
All railroads, comprising 2GO 900
miles of lines, valued at $l7,000,000,
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 other concerns
private car lines.
All railroad elevators and ware
houses.
All railroads telegraph and telephone
lines.
The president also will ask leglsla-
ton enabling him to solve the labor
problem Of the roads.
The application for a wage increase
averaging 40 per cent is now pending.
The men have refused to accept com
pulsory arbitration while the roads
were under private control
This wage question, one of the most
Ia
government in operation of the roads,
must be settled by Mr.. McAdoo.
The presidents proclamation states
he will take possession of the rail-
ways through Newton d. Baker, sec
rotary of war This emphasizes his de-
termination to run the roads strictly
as part of the military system.
War Department Can Handle Draft.
The fact that the railways are I'M
der the war department will simplify
the matter of drafting men for work,
in case an extreme step should be-
come necessary.
The presidents advisers do not be-
lleve such measures will be needed.
The brotherhoods have demonstrated
their loyalty and are depended upon
to adopt action now that will guar
entee enthusiastic continued operation
of the roads,
In selecting Mr.. McAdoo for the
most powerful place in the admins
tration, the president is known to have
been influenced by the fact that Mr..
McAdoo has a thorough grasp not only
OF railway and government finance, but
also of the worlds financial situation
Furthermore, one of the presidents ad-
vlsers stated. he is a man who does
things. He can cut through red tape.
These two considerations pointed to
the secretary of the treasury as the
one to unite the transportation knot
Power Is Great.
The power placed in his hands is
greater than any ever before given a
single American other than a presi-
dent.
He will take possession of every
railroad and every system of transpor-
tation located wholly or In part within
United States boundaries. Street ratl-
ways alone are excepted. All steam
ship companies owned or controlled by
railroads, will come under his control
and operation.
The present officers of the roads
will remain in their places, but can
be removed, or changed, at any time
by order Of the director general of
railroads. His authority is paramount
even 10 that Of the interstate CONNER ce
commission. which hitherto has fixed