Show PRESIDENT TAKES HER RAILROADS names mcadoo as director general for all lines in united states EARNINGS ta BE guaranteed Act action loin which affects also coastwise lake and river steamship prop bertles taken as aa a war measure washington president wilson under his war bowers powers has as burned possession and control of all the railroads and steamship lines within the he united states the president Preside nj issued a pr pro clama invoking his war nut authority hority to takeover take over the railroads and appointing ing secretary of the treasury mcadoo to the position of director general of railways mr mcadoo will remain secretary of the treasur treasury and in his dual role will bd L the roost most powerful official in the nation except the president the railroads will continue to be operated by their respective corporations under the direction of mr mcadoo and the primary unction function of the lines will become the transportation of troops and war supplies and materials to which nil all other service will be subordinated properties which h are taken the te properties that will pass into the control of the government are all railroads railroad comprising miles of lines valued at all coastwise take lake and river steamship lines all terminals terminal companies and terminal associations the pullman companas comp anys sleeping ears cars and parlor cars the packers an and other dother concerns private car lines all railroad elevators and ware h houses aliser all 11 railroad telegraph ph ant and telephone lines all interurban electric line carrying freight only street car lines line exempt the ithe president will not take over nt at this time any street car or local pits pas carrying interurban electric lines but he provides in his iama lion that by subsequent order he may take possession of any such lines found desirable including subways and nd tunnels tile the proclamation does docs not specifically mention express companies but the language of the proclamation in which there appear the words and ill all other equipment and appurtenances commonly used upon or operated at as a part of such system would seem to include these companies guarantee of fair profit thi the govern government Tent guarantees to the stockholders tock holders of each of the railroads a profit equal at least to the average p profits ro fats of the road during the fiscal years yeara ot of 1010 and 1017 taking all of the roads of the country as a basis the general average was 1521 per cent on their total capital investment the president I 1 says that he will ask congress to provide fori for the guarantee of prewar pre war earnings to the owners of the properties and he adds investors Invest orB in railway securities may rest assured that their rights and interests will be as scrupulously looked after by the government as they could be by the several railway systems mcadoo to negotiate i director general mcadoo cadoo 51 Is instructed d to negotiate with the railroads immediately inedia tely agreements providing for a n compensation to the owners of the properties amounts amounting ng to the average net profit derived by each company during the three year prewar pre war period these agreements agreement s to be submitted to the president for action in connection with the legislation asked of congress bondholders Bond holders and other security holders are to receive the same return on their investment they received during the prewar pre war period and other creditors tire re to receive their due wit with it rights unimpaired the president preil dent takes possession of the he railroads by executive order under th authority conferred upon him by a p provision rv islon of the army appropriation act of august 29 1010 which follows the president in time of war la Is em cm powered through the secretary of war to take possession and assume control of any system or systems of transportation or any part thereof and to utilize tho the same game to the exclusion as far as may be necessary of all other traffic thereon for the transfer or transportation of troops war material and equipment or for such other purposes connected with emergency as teay bay bo needful or desirable cut in passenger traffic the government 1 will be required to provide tho the rall with matel it Is 15 estimated for the expansion and building of new terminals extensions of tra tr arage kage and additional rolling stock government control will also entail general shifting chit ting of rolling stock to the centers of war industry to relieve he be congestion of transportation dfwar of war materials hundreds of engines and thousands of cars cam will be sent seat from western and nd southern roads to eastern territory where N 0 per cent ot of the war supplies are brine being produced passenger traffic traffie la Is scheduled to be greatly curtailed on western rondo |