The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-05-22
FIRE RAIL HEADS
Railroads To Be Operated by
Federal Directors Now.
Create New Observation-Disclosures
Will Be Reduced.

Washington, May 22.-Every rail-
way manager, the responsibilities of
which heretofore have been theored-
cal, was relieved from active duty as
executive manager of his road by Di-
rector General McAdoo, who will ap-
point a federal director for each rail-
road. responsible only to the railroad
administration. In many cases the
president of the road may be federal
director. To safeguard the interests
of stockholders and maintain the in
dividuality of each railway, federal di-
rectors whenever possible will be ap-
pointed from among the operating Of
ficers of the property, the director
general announced This will avoid
dlSrupting any roads working organ
lzation unnecessarily.
AS another step in the reorganiza-
ton of the railroad agreement, the di-
rector general ordered the creation of
two new operating districts-the Ale
gheny region, consisting of the prin-
cipal trunk lines east of Pittsburg, ex-
Guiding the New York Central man
aged by c. H. Markham, now regional
director for the south, and the Poca-
hontas district, consisting of the east
and west trunk lines terminating at
Hampton Roads
The first act of the director gen.
eral in executing this new policy was
president of the Virginian railway, as
chief operating officer, on the charge
that he failed to carry out promptly
the railroad administrations instruc-
tons regarding the repair and main
tenance of his line. This was thought
10 be forerunner of similar DISPOSE
tons of number of other railroad
presidents, but announcement of the
plan for wholesale replacement of
railway presidents by federal direc-
Tors came as a surprise.
May Cut Salaries.
tlon or present presidents VII be
named to manage their own proper
ties, particularly whenever he is the
most active operating officer, but in
all these cases the presidents will be
required to resign their official posi-
uonS with their companies and to be-
come executive representatives of the
United States railroad administration.
consequently their salaries will be
paid by the government, and they
can receive no pay from the railway
corporations AS an indication of
what salaries they may expect it be-
came known that most of Mr..
McAdoo's principal assistants will re-
ceive not more than $4,000 4 year.
For most of them this is much less
than they received as officers or
executives of railroads under private
management
Railroad presidents who now man
age their own operations and who rave
had good relations with the railroad
administration will be retained in most
cases, it is understood. The vice preSi-
dent who is general manager VIII be
considered the next most logical man.
The appointment of federal directors
will be made as quickly as possible and
meantime the present method Of nan
agement will be continued. Recon-
mendation of regional directors Will be
sought in all cases. The elimination
of presidents as operating officers will
have the effect of cutting off allow
ance of their salary from operating
revenues and compel companies to pay
the salaries from the funds they get
from the government as compensation
for lease of their roads or from other
sources of railway income. Presidents
salaries now run as high as 100000.
it is understood, and many receive be-
tween so 000 nd S50 0l0