Jasper County Democrat, Volume 20, Number 78, Rensselaer, Jasper County, 29 December 1917 — M'ADOO RULES ALL ROADS TODAY [ARTICLE]

M'ADOO RULES ALL ROADS TODAY

Order Pooling Every System Being Drawn by Director General. WORKERS WILL GET RAISE High Salaries of All Officials Will He Cut Down I r the New Government Control.

Washington, Dec. 28. —A continental system of railroads of the United States, including every mile of track, all equipment and every employee was put Into existence at noon today. Secretary of the Treasury McAdoo, named by President Wilson to be director general of the railroads, conferred with the railroads’ war board. The conference was to determine questions of administration. The railway executives will be told that for the time being there will be no changes In the official personnel of the big systems. From his position of absolute thorlty under the president’s proclamation, Mr. McAdoo will announce that all red tape and statutes that hinder will stand negatived for the period of the war. Full support of and co-operation with the government have been assured by the executive heads of the railroads.

First Order Drawn. Order No. 1, to be Issued shortly by Director General of Kailroads M<S Adoo, will provide for the pooling of all traffic and facilities, the common use of terminals, tracks and equip'inent, the hauling of freight by the, shortest route regardless of billing or routing, and the retention of all present officers and employees of railroads. One effect of this order will be to give a number of railroads facilities which they do not now have tn big cities. The Baltimore & Ohio probably will enter New York city at the Pennsylvania station. Heads of the four railroad brotherhoods conferred wlht President Wilson for an hour and a half, discussing In detail the part the employees will play under government operatioln. A. B. Garretson of the conductors* said afterward that wage increase® were not mentioned, Mr. Garretson added that the brotherhoods were behind the government) operation plan, and the president had. known It for two weeks. Will Pay 4 Per Cent.

One of the first acts of the government in beginning operation of railroads will be to reduce large salaries now being paid to the railway executives and increase in some measure! the wages of the railway workers. Securities to be Issued while the government Is in control will be at interest rates not less than 4 per cent, and the issues will be made under joint authority of the director general and the Interstate commerce commission.

President Wilson, when he outlines the government's plans in his forthcoming address to congress, will ask that the government be empowered to buy any quantity of new railroad securities. All earnings over and above an amount to be agreed upon will go to the government. Will Ask 200 Millions. Congress will be asked also to appropriate a large fund—probably $200,000,000 —for the immediate supply of rolling stock to handle the flood of traffic which has swamped the roads.

The director general will have authority to decide whether the government shall also assume operation and control of the express companies. The presidents of many large lines now receive salaries ranging from $50,t)00 to $130,000 a year, and one of, the first acts of the director general probably will be to cut these sharply. Ten thousand dollars a year is being discussed as a maximum, although there is no tendency to underestimate their worth to the government In the war emergency. Some railroad men predicted that the officers would accept these reductions willingly in view of the fact that they are virtually drafted for war work. The saving in salaries would be applied to raising the pay of members of the four railway brotherhoods, whose officers conferred with President Wilson, and also of other railway employees unorganized.

Although in most cases earned dividends exceeding the guarantee will revert to the government, congress will be asked to make provision for abnormally low, by authorizing the payment of dividends in excess of those amounts on approval of the interstate commerce commission. In his dual position of secretary of the treasury and director general of railroads Mr. McAdoo would be in the best position to pass on questions of securltl*s’ interest rates.