University of South Carolina Libraries
WEMKNT ROAO CONTROL piikhjdknt Wilson takes CHARGE OF TltANSPOUTA TION BUSINESS, Railroad and Steamship Uiich to Bo Operated mi One System Under Government Direction?Secretary vi Treasury McAtloo to Be l>in> tor General?(Jliangr Takes Plncu To Washington. Dec. 3?i.?Government pieeeealon and operation of the na? tion's railroads for the war was pro? claimed by President Wilson tonight t> become effective at noon Friday. December 28. Wiliam O. McAdoo. i staining his place in the cabinet ax secretary of the treasury. Is plar> <. la charge aa director general of th railroada Every railroad engaged In genci transportation with appurtenance* lacludlng steamship lines is taken over and all systems will be operate ed ae one under the director general. In a statement accompanying the proclamation the president stated as noon as congress reassembles ha would recommend legislation guaran? teeing pre-war earnings and main? tenance of railroad properties lr good repair. Government backing v/111 be given to new lasueu of railroad se curttlee that a ready market may bo found. The president's move, although forecast for weeks, came at this time aa a great surprise to nearly every? body In Washington Including rail? road officials. It had been general!:, believed he would await the reassem? bling ef congrese before taking any step. He acted through Secretary Baker under authority conferred In the army appropriation act. Direct management of the roie> will remain In the hands of railroid officials and the railroad board, com? prised of five railroad heads, will continue to direct actual operation un der Secretary McAdoo's general super? vision. The chief practical effect of gov? ernment operation will be to permit a complete unification of all rail Sys? teme, Impossible .under private oper? ation by reason of statutes prohibit? ing pooling of/ rail traffic and earn? ings. The roads themselves had gone ae far ae they dared in this direction and it became known only today ihat they had been warned by Attorney General Gregory that a violation of -^anti-pooling laws could not be per? mitted. The situation was fully realised by President Wilson, who In his st.it ? ment declared the roads had gon? as far ae they could and that already some systems were endangering then earnings In attempting unification. Although the proclamation applies to a!! electric lines engaged in gen? eral transportation, local interurbui ?ystrms are specifically exempted, k Congrese will be asked to guaran mLp* earnings equivalent to the aver? age net operating Income of each ^^allroad In the throe your period end f rng June 30. 1917. Railroad ex parte estimate that this will cost the government next year In the neigh borhood of $100,000,000, which cat be raised In large part by Increase-) freights If the interstate commerce commission grants the roads appll ration for the 15 per cent, rate lr creaee now pending. Otherwise will be paid largely out of the gener al government funds. The Interstate commerce commie ston and other government agencle> which have to do with the railroad; will continue to perform their func tloae as heretofore except that the> will be subject to orders of the di rector of railroads. The president makes it clear tha hie decision was not made because ol any failure on the part of the rail roads to perlorm their whole duty ii so far as they could while hamperec aa they were by legal restriction. The plan of control as outlined lr the proclamation and statement leaves much unsaid as to details but the general scheme appears to fol low closely the British system. It England, however, the government freight Is carried free and the guar anteed earning required an enorn\ou> amount of money from government funds, while In the United States th? government will pay for Its freight as In the past and will stand Its pari of increased freight tariffs if they arc found to be necessary. Aside from the president's state meat there was no comment in tin1 capital tonight on the governments move. The president's statement follows. "I have exerrlsed the powers over the transportation systems of th< country which were granted me kg the act of congress of August, 1918 because It has become imperative^ necessary for me to do so. This is h war of resources no less than of men. pwrhape even more than gf men ;>nd It te necessary for the complete mobilisation of our resources that the transportation systems of tho conn should be organized and employ ed under a single authority and it -I ..? . ? 1 ??< simplified method of coordination which have not proved possible un? der private management and control. The committee of railway executives who havve been cooperating with the government in this all important mat? ter have done the utmost that it waa possible for them to do; havo done it with puUrlotlc zeal and with great, a.bility, bir.t there were diificultie** that they could neither escape not neutralize. Complete unity of admin? istration in the present circumstances Involves upon occasion and at many i.jis a sertous dislocation of earn? ings- and the committee was, of course I without poweir or authority to rear? range chargeii or effect proper com? pensations and adjustments of earn? ings. Sev??roJ roads which were wil? lingly and wijth admirable public spir? it ac<*epting the order of the com mlttee have already suffered from these clrcuiostances and should not be required to suffer further. In mere fairness to them the full au? thor ty of the government must bt substituted. The government itseh will thereby .gain an immense increase of efficiency In the conduct of tie war and of the. innumerable activi? ties upon which its successful conduct depends. "The public Interest must be fir*; served and, la addition, the financiui lnteuests of tbtc government and the financial interests of the railways must be brought under a common d. rectlon. The financial operations of the railways need not then interfere with the borrowings of tho govern Iment and they themselves can be con ducted at a greater advantage. In Iv-estors In railways securities may reu i assured that their rights and Inter-1 est? will be as scrupulously looked af? ter by the government us they coulwj be by the directors of the several railway systems. ".Immediately upon tho reassem blir>ff of congress I shall recommend that these definite assurances be giv cn: First, of course, that tho rail way properties will be maintained the period of federal control in hij good repair and complete equipment las when taken over by the govern I rnent, and second, that the roads shal 1 receive a net operating Income equn* in each case to the average net in come of the three years precedin June 30, tilt] end I am entirely con fldent that the congress will be dis I posed in thla case, as in others, to set that justice is done and full securlt> assured to the owners and creditor I of the great systems which the gov? ernment must now use under Its own I direction or else suffer serious em I barrassment? I "The secretary of war and I art i agreed that, all the circumstances be ing taken into consideration, tho bee J results can be obtained under the immediate executive direction of th' Hon. William G. McAdoo, whost practical experience peculiarly fit him for the service and whose au thority as secretary of the trcasur will enable him to coordinate as t J other man could the many flnancla interests which will be involved an I which might unless systematical Idirected, suffer very embarrassing en I tanglements. "The government of the Unite I States is the only great governmer I now engaged in the war which hn I not already assumed control of th! sort. It was thought to be in th. I spirit of American instituions to at I tempt to do everything that Wl necessary through private manage 1 Iment and If zeal and ability and pa tri?.tie motive could have accomplish led the necessary unification of ad II ministration it would certainly hav? J been accomplished; but no zeal o 'lability could overcome Insupcrabh obstacles, and I have deemed it nv duty to recognize that fact in nil candor now that it Is demonstrated fland to use without reserve the great authority reposed in me. A grea I national necessity dictated tho actlot 11 and I was therefore not at liberty u I abstain from it. ?I "VVoodrow Wilson." 11 The following is the president s t proclamation: . I "By the President oi the United I States of America: II "A proclamation. J "Whereas, the congress of the Unll led States in the exercise of the eon t J -rtitutional authority vested in then by Joint resolution of the senate and 1 house of representatives bearing date t Aprll 6, 1917, resolved: > "'That the state of war between the United States and the Imperial I German government which has thus been thrust upon the United Slates || hereby formally declared; and that J the president be. and he is hereby Iauthorized and directed to employ the entire nava and military for? c of the United States and the resource: I of the government to carry on w.n against the imperial German govorn j ment, .Mid to bring the conllict |< I successful termination, all of the re sources of the country are hen pledged by the congrss of the Unit' i ed States.' ? \ini by joint resolution bearing date Oi DeeentbOf 7. 1917, resolved: " 'That a state of war is hereh] dee la rod to exist between the United H_i_i_? 1 ? * ^?< btates of America and the imperial ;md royal A astro-Hungarian govern ment; and that the president be, ami lie is hereby, authorized and directed to employ the entire naval and mili tary forces of the United States and the resources of the government to carry on war against the imperial an i royal Austro-IIungarian government; and to bring the conflict to a eueceaa ful termination, all the resources o. the country are hereby pledged by UM congress of the United States. " 'And whereas it is provided b: section 1 of the act approved An 29, 191C, entitled "An Act making ap propriations for the support of th. army for the llscal year ending June 30, 1917, and for other purposes,'* u* follows: "The president, In time of war. i. empowered, through the secretary o! iwar, to take possession and assum (control of any system or systems oi transportation or any part thoreoi and to utilizs tna name, to the exclu sion as far as may be necessary Ol all other traffic thereon for the trans? fer or transportation of troops, wai material and equipment, or for sue) othef purposes connected with th emergency as may bo needful or d< sirable. "And wdicreas, It has now becom necessary in the national defense 1. take possession and assume contro Irvf certain systems of transportation and to utilize the same, to the ex elusion as may bo necessary of othe; than war traffic thereon, for tru transportation of troops*, war materia and equipment therefore and for t>th ^r needful and desirable purposes 1 connected with the prosecution o> the war; "Now, therefore, I, Woodrow Wil son, president of the United States under and by virtue of the power: vested in me by the foregoing reso? lution and statute, and by virtue of al powers thereto me enabling, do here by, through Newton D, Baker, secre? tary of war, take possession and as? sume control at 12 o'clock noon on the 28th day of December, 1917, o! each and every system of transporta tion and the appurtenances thereo* located wholly or in part within the bondaries of the continental United Slates and conslstlng/of railroads, and owned or controlled systems of coast? wise and inland transportation wheth? er operated by steam or by electrii ipower, including also terminals, ter? minal companies and terminal asso clations, sleeping and parlor cars private cars and private lines, eleva? tors, warehouses, telegraph and tele? phone lines and all other equipment nnd appurtenances commonly used upon or operated as a part of such rail or combined rail and water sys? tems or transportation, to the end that such system of transportation b? utilized for the transfer and trans? portation of troops, war material an?! equipment, to the exclusion so far a may be necessary of all other traf? fic thereon; and that so far as the exclusive use be not necessary or de Hlrable, such systems of transporta? tion be operated and utilized in the performance of such service as th national interest may require and of the usual and ordinary business and duties of common carriers. "It 1? hereby directed that the pos? session, control, operation and utili tatloa of such transportation system hereby by me under taken shall t>< exercised by and through William.Q% McAdoo, who Is hereby appointed and designated director general of rail? roads. Said director may perform the duties Imposed upon hini. so lonpr an 1 ?o such extent as he shall determine through the boards of directors, re? ceivers, officers and employees of sab systems of transportation. Until and except so far as said director shall from time to time by general or spe? cial ordern otherwise provide, the boards of directors^ receivers, officers and employees of the various trans portation systems shall continue tin ordinary course of the business or common carriers, in the names of their respective companies. Until and except so far as said di? rector shall from time to time oth? erwise by general or special orders determine, such systems of transpor? tation shall remain subject to all existing statutes and order of the in? terstate commerce commission, and to all statutes and orders of regulating commissions of the various States in which said systems or any part there? of may be issued. But any orders general or special, thereafter mado by said director, shall have paramount authority and be obeyed as smb. "Nothing herein shall be construed as now affecting the provision, oper? ation and control of street electric passenger railways .including railways commonly called interurbans. wheth? er BUCh railways be or be not Owned or controlled by such railroad com? panies or systems. By subsequent or? der and proclamation if and when ii shall be found necessary or desirable possession, control or operation may be taken of all or any part of such streel railway systeme, Including sub ways and tunnels; and by subse? quent order and proclamation, possi -don, control and operation in who' or in pait may also i>e relinquished to tho owners thereof of any part of th< railroad systems or rail and watei systems, possession ami control oi which are hereby assumed. "The director shall as soon as m r be after having assumed Buch pos session and control enter upon nego? tiation! with the several com pan let looking to agreements- for just and | reasonable compensation for the pon s( ssion, use and control of their r< spective properties on the basis oi* an annual guaranteed compensation, i above accruing depreciation and the maintenance of their properties, equivalent, as nearly as may be, u. the average of the net operating In come thereof for the three year period ending June .'<??, IUI7?the result oi such negotiations to be reported t< me for such action as may be appro priate and lawful. "Dut nothing herein, contained, ex i pressed or Implh I, or hereafter done, or suffered here ader, shall be deem? ed in any way to in:pair the rights < the stockholder.-, bondholders, cr >dl tors and other persona having inter ests in said systems of trunsportaiioi or in the profits thereof ,to receive lust and adequate compensation fo. the use and control and operation OI their property hereby assumed. "Regular dividends hitherto de clared, and maturing Interest upon bonds, debentures and other obliga? tions, may be paid in due course; an ! such regular dividends and interest may continue to be paid until and un? less the said director shall from time to time otherwise, by general or spe? cial orders, determine; and, subject to the approval of the director, th' various carriers may agree upon and arrange for the renewal and exten? sion of maturing obligations. "Except with the prior written as sent of said director, no attachment by mesne process or no execution shall be levied on or against any of the property us-ed by any of said transportation systems in tho con? duct of their business as common carriers, but suit may be brought by and against said carriers and judg? ments rendered as hitherto until and except so far as said director may, by ; general or special orders, otherwise ? determine. "From and after 12 o'clock on the said 28th day of December, 1917, all transportation systems included ir this order and proclamation shall conclusively be deemed! within the possession and control of said direc? tor without further act or notice. But for the purpose of accounting s;aid possession and control shall datr i\m mm SOARED. INVESTORS SHOW CONFIDENCE IN WILSON'S POLICY. The Announcement of Govcrnmcm Control oi' Railroads Followed Ry Great Advance In [lallroad stocks and Bonds* New York, Dec. 27.?Stocks ?oared Oil the opening Of the market this, morning, denoting the satisfaction of the financial community with the] president's decision to take over the railroads. The advance ranged two to eight points in the railroad list, all standard shares being bid up furious? ly. BRUTISH STEAMER WRECKED. Naupur Wrecked on African Coast? London, Dec. 27.?The British steamer Nagpur, eighty-three hundred tons is reported to have been wreck? ed in Delagoa Bay, Portugese Africa, says a dispatch from Lisbon. The passengers numbering two hundred and fifty-nine, crew and cargo were saved. FRENCH SHIPS SI NK, One Large Ship and One Small Vcs Paris. Dec. 27.?One French steam? er over sixteen hundred tons and one under were sunk by submarines and mines during the week ending Dec. 2_'d. NOTHING TO REPORT. London, Dec. 27.?"Nothing to re? port last night, except some ho.-tile artillery activity north and east of Ypres," Gen. Haig reported to the war office today. from 12 o'clock midnight on Decem Iber SI, 1917. "In witness whereof, I have here? unto s-et my hand and caused the seal of the United States to be affixed. I "Done by the president through Ne wton D. Baker, secretary of war, in I "the District of Columbia, this 26th day of December, in year of our Lord, one thousand nine hundred and sev cnteen. and of the independence of the United States, the one hundred and forty-second. "By the President: Robert Lansing, Passengera Saved. ?el Sunk Last Week. "Woodrow Wilson, "Newton D. Baker, Secretary of War. express mmis also. GOVERNMENT MAY PERHAPS TAUE OVER AND OPERATE EXPRESS D )MP NIES. Some of the Details of the Financing and Operation or Railroads Under G overnment Com rol?tiowrntoent Will Forntsfa Funds and Will Hold Profits. i I Washington, Dee. 2't.?The securi? ties to he Issued by the railroads while the government is in control bear in t rat at not less than Tour per cent. President Wilson wll task congress to I empower the government o buy any quantity of the new securities. All earningl over and above an amount to he agreed on will g' to the govern? ment. Congress will be asked also to appropriate a large fund, probably two hundred millions, to Immediately supply rolling stocV to hande the Hood of traffic which has swamped the roads. The director general will have au? thority to decide whether the govern? ment shall also assume the operation 'and control of the express companies. In his dual position Secretary Mc Adoo will be in a position to pass on securities* and Interest rates, it is held. It will also b< his duty to de? termine when the overnment shall purchase new securi ies and this plan will prevnt railroad securities from interferring with future issues of Liberty bonds, without necessitating actual government financing of the railroads. DR. BROCK MURV'ERED IN PRIS? ON. Struck Down at Federal Prison in At? lanta. Atlanta, Dec. 27.?Dr. James R. Hrock of Trenton, <la., a deputy war? den of the federe' penitentiary, was killed at the prison this morning when Dimitre Popoff, a prisoner, struck him down with an iron bar as the prisoners wer? leaving the din? ing room. Popoff s only "statement was "it was a personal matter." Popoff had been sentenced for coun? terfeiting from Ohio. Washington, D >c. 27.?One of the first acts of the g overnment in begin? ning the operati m of the railroads will be to reduce the large salaries of railway executive S and incree.se. in some measure, the wages of railway workers. Fertilizers We have a limited quantity of CALCINED MARL We bought this very much under the market and will dispose of it on same basis. We have sold quite a lot of this material with very satisfactory results. Some of our patrons used it last year in connection with other fertilizer under cotton, and they tell us where they did, there was no evidence of rust, whereas land on which it was not used rusted badly. Where it has been used in connection with a com? plete fertilizer for grain, using 2,000 lbs. per acre, the result was very satisfactory, showing more than double. Our price will not exceed $8.00 per Ton Delivered, Sacked O'DONNELL & COMPANY, INC. Analyzing as follows: Carbonate of Lime Bone Phosphate of Lime 74.40 5.40