Show TAKES NER names mcadoo as director general for all lines in united states EARNINGS TO BE guaranteed action which affects AIM also Case twite lake and river steamship prop arties taken as a war measure Me acure washington president wilson under tile film power powers has its burned po anti control of all the railroads and lines with in the united states the prel president dent leaned a proc iama tion invoking lile ills war or authority to take over the railroads and op appoint point ins ina secretary of the treasury mcadoo to the of director ginneral of rall wayn mr will remain secretary of the treasury and in big hi dual role will be ili the root most powerful po weful official in the nation except the pies president pied dent ident the railroad will co continue dinue to be operated by their re respective corpora eions under the direction of mr ir mcadoo and anc primary function of the line lines will become the lion at of troops ani war supplier supplies and material materials to which all ether other service 1 will ie it subordinated properties whish h are taken the tito properties that will pass I 1 into n to the control of he the government are all railroad rall rod R comprising finites of lines line i allied at all coastwise lake ani still river 1 meant hip ship lines all terminals terminal companies ant terminal associations the tile pullman compan a sleeping cara cars and parlor cars the packers and other concern concerns PH vat vote car lines all railroad elevators and warehouse warehouses all railroad rall rond telegraph and telephone lines all interurban electric line lines carrying only strett car line lines exempt the prel president dent will mill not tako over at thia this time any street car or local pae pas senter carrying electric linea lint but he provides in his pra cloina laina ion that by order he may of any uch such lines illies found desirable del rable in including chiding and tunnels ilk does oot not ally mention express companies coni pante but the of 0 the proclamation in walh there appear the word words and all other equipment and appurtenances tomm commonly only used upon or operated ns ai a part of system ty fiteni would seca seem to include these companies Gua guaranty tf of fair profit fir fe the government guarantee guarantees to the stockholders of each of ho tho railroads a profit equal nt at least to the art rage profits of the road during the year years of 1915 1016 1010 and 1017 taking nil all of tile lie roada roads oc of the coun try as B a basa the general average wn was 1 per cent on their total capital in vestment tile president ays says that he h will ask ak olteia to provide tor for the garant jf if prewar pre war aar marnius to the own era ers t I 1 the properties arld he lie adds i ift in railway securities roay may rest rost ft that their rights looked a and anti interests Inter cut vw ill be as a scrupulously looked after by the government as they could be by the several railway ty stema R mcadoo to negotiate director rector Ul flea le cral aeral madoo Is 1 instruct ed to negotiate with ho the railroads im nied lately agreement agreements providing for compensation to the owners of the properties amounting to the average net profit b ba cacti company during the irre year prewar pre war mar period thee these agreements to bo be to the tor for action li ii with ile legislation lechl atlon asked ot of ts bondholders end and other security hold erx cr are to receive tive th same return on their Ini estment they received during the prewar pre war pe and other creditor creditors are to 1 receive their due mith righta rights the takes poseidon pos posse eIon of Z the railroad railroads by executive order under the authority conferred upon him hint by a provision of tho anny army appropriation act of augut august SO 29 iota 1010 which follow follows the in time of war is 1 con powered through tho the secretary ecret ary of war to tale take poses and asquino P control atrol of any system or systems of 0 tran transport tol tion or an ill part art thereof and to utilize the same to the exclusion as far aa as may be enry vf of nil all other truc thereon for the transfer or at transportation of mor material and equipment or for tuch other purposes pup connected conn wied with emergence emer enier genc aa as kia ay iy r be needful or dest desirable cut in passenger a traffic the government will be required to provide the railroads with 1000 it Is estimated for the expansion and building of new terminals oa 01 of 1 and additional stock control will elo also entail a general hitting shifting of rolling lock to the c bitters of war or industry to relieve the of of war trial hundred cf of engines and thousands of cars will bu eat sent froni western and southern roada roads to eastern territory where 80 per cent of the be war plied tte are tt e belli being I 1 pal kaew Pa dellger eW traffie Is I 1 scheduled to oe licitly curtailed cur on roads this cut tall ment will be marked coin coul petition in passenger pan pai traille be between teen chicago and st paul and and the pacific coast for or example will mill be abolished thi this will mean the with ith bramal of 0 many trains why courto course wa was taken in a statement accompanying the proclamation allson saye says that he takes this radical notion action because tt it has become imperatively feces necessary tary for or ine me to do so in order to mobilize in the sh shortest ottest possible time all thu material resources of the cation nation for or the conduct of 0 the war the railroads sas the president must be organized coordinated co and cipp employed loyed under a single authority the attempt of 0 the rall nada ads them s fires sires ires to provide tills single nutter I 1 find and simplified organization in the fx railroads war board end and its special ope operating committee has lia proved a allure failure because of 0 physical limitations although altho uca the president pays high tribute to the ability and zeal xeal of tile he five rail executives whose efforts have been demoted to the task the organization effected by the railroads rall roada roads war board buard will ill be the lie foun bation upon wh which ir h director gentral mcadoo ditl build the structure of government control it Is not unlikely that borne some tt if not all of the of the war board will bo be associated with mr mcadoo in administering tho the management of the unified lines in ills hi statement ement the president refers to the defects of the of unification attempted under private control sevenia railroad railroads have suffered flu 11 1 in dolly end and physically from carrying out the orders of 0 the tho war ar board which A aich required them to be utilized util lied in tz x unprofitable transportation la in order that the transportation of war materials might be facilitated need fear no losses under government control no rail road will 1111 incur ucb such lost logies es the railroads will ill not be interested in what hat class of traffic they tiey handle will ill not rare care whether hether it Is I 1 profitable or ible liable if it it Is unprofitable the loss ill be made good by the govern trIent tur tor the government assures the stock holders tle e return on their Ine the tile 0 on the annual average for he the three years ended june JO 30 1017 10 under government control the roii u roads are ore to be ss assisted in the capital necessary to finance tho the vast rast extensions of trac kace and rind terminals and the building of additional locomotives and cars madi madu by the demands of war the president sas that under rv vv erni nent control he the ti fi earn lari ings of the railways need nei nt not n t anen int with the borrowings borrow borro ings ans of the SOT gov ernin tnt 1101 road investments are to be made attractive to anve investors tors by the guarantee ally a loan may be mad by the gov ov t to the mil railroad roads it Is rold said however in the selection ef of mr air mcadoo for director general gentral of railroads roads that here there lies ilea the grasteit crea gres test 1 of government as asals sistan lance to ike h railroad railroads in to their eions ami and exton ext tins Mens while mr mcadoo will not helln his fits post as a h head ell of of the t it e tre treasury as a ry department he will be compelled to turn over to others most of the routine business busl nes of the department to 10 which at present he Is giving his personal attention of course he will have a number of capable assistants stanta i relieve him of some of the responsibility connected with the duties he will shortly assume no limit to powers in his proclamation the preside c confer confers upon mr powers tb it at will be practically unlimited when ho he enter enters upon the direction of the rall rail way ways ind can be subsequent ly only by the president or by con greo greets in the first place sir Is au an thOyl to control and direct the rail A ays under private operation by emli ting directors receivers and officers so 60 long and to such extent as ho he may determine the railroad official are informed in the pr proclamation clarna that they will continue the operation or of the properties until and except so far ns as said director hall shall from time to time by general or special orders provide sir mr mcadoo will have power to discharge ex existing Isling directors and other of flici als and appointed new ones how ilow ever it Is expected th thit t generally the executive forces of the various roads nill continue in their offices in act there Is sui posed to be no one else avid available lable for the herr job jobs from pre prel I dents down can decide on an rates the director general Is to wiell a dhority paramount to that of the I 1 fv r state commerce and tate late railway commissions tito statutes an I 1 orders of these bodies are to remain binding upon the railroads only so long as mr vr approves he decides that rates should be rease 1 upward or downward or that national or state regulation 1 should be charged all he will have to do Is to issue an order putting the change into effect and that order un der the presidents denVa proclamation shall have paramount authority and be obeyed A as 1 euch such I 1 the regular dividends hitherto declared t nd the interest upon bonds and other obligations arc tire 11 be pull l as usual unless mr should determine otherwise te lut but all renewals and exten extensions lons of maturine maturing oblige eions can be ande bv by the roads only with the approval of the director gen oral eral woy M adoo was chosen the tho nt at says he and secretary of war baki r in whose name the ex poes possession slon ct of the lines are agreed that existing circumstances mate make advisable the appointment ot of mr air I 1 mcadoo hose practical experience peculiarly its fits him for the service ani and who whose whore re authority us as secretary ot of the treasury will ancl encl him to ordinate coordinate co as no other can a could the many mans thian dal Int interests erts r hith will be 1 ed and which might unless lealler tal suiter suffer a em ell tva tAsia cements emen ent ts |