The Bismarck Tribune Newspaper, December 27, 1917, Page 2

GIGANTIC COMBINE OF TRAF President Issues Sweeping Order Placing Transporta At Twelve O’clock, Noon, December 28th, all Rail and Water Utilities, Lines, Terminals, Euip- ment, Public and Private, Wharves, Coastwise Shipping and All Appurtenances and Belong- ings of Domestic Systems form Single Unit for the Transportation of Troops and War Supplies and Such Other Traffic as May Be Required by Government Necessity — Basis of Three Previous Years Applies to Grading and Valwation. FOR THE PERIOD OF THE WAR IS THE LIMIT IMPOSED BUT IT MAY BE STEP FOR GOVERNMENT OWNERSHIP President Will Ask Congress Immediately on Re-Assembling to Provide Ways and Means for Deal- ing with Financial Side of the Problem in Such Manner that Investors will be Safe and Prop- ertics ‘Maintained in Perfect Physical Upkeep—War Board Still Continues and Administra- tive Authorities Now in Charge will Act Under Unit Organization—Dividends Guaranteed by the Treasury. Washingion, Dec. 27.—President Wilson announced tonight that he will assume possession and operation of every railroad in the continental United States at noon Friday, Dec. 28, and that he had‘appointed Secretary McAdoo director gencral of railroads. Secretary McAdoo, whose appointment is made by formal proclamation, is expected to direct the unification and operation of the roads through their pres- ent managements. He will retain‘his place in the cabinet as Secretary of the Treasury. In a statement accompanying his proclamation the president announced that when congress reassembled he would ask that definite guarantees be given that the railroads’ properties will be maintained in as good repair and as’ complete shal 30, 1917. uae as when taken over, and that the net operating income in ea case ual the average net operating income of the three years preceeding June The railroads will be taken over under war authority already: granted by congress, through the secretary of war. WILSON’S STATEMENT pohly .| rassment. i McAdoo Executive, War Measure of Imperative) wy steretary ot war and 1 aro Necessity. agreed that, all the circumstances be- — ing taken into consideration, the best Washington Dec. '26.—The _ prest- dent's statement follows: “I have exercised the powers over the transportation. systems of the country which were granted me by the act {ot congress of August, 1916, be- cay it has. become imperatively nec- esbgey. for me to do 9¢..This.is a war. results can be obtained under the im- mediate executive direction of the Hon. Wm. G. McAdoo, whose practical experience peculiarly fits him for the service and whose authority as sec- retary of the treasury will enable him to co-ordinate as no other man could the many financial interests which will be involved and which might; un- less systematically directed ‘suffer oughly in the ‘absentee-landlord tax feature of the bill, for.a settled state like North Dakota, although he feels it works a hardship in the Canadian northwest, where an open range is a great aid to the homesteader. Senator King predicts less fire- works and more action in the next session of legislature. We. were all a trifle over-suspicious in the last ses- sion,” said the Burleigh statesman. “It. was @ new game for us, and we were liable to judge the-other fellow without trial. This: went! both ways, of régources no less than of men per- haps even more than of men, and it is necessary for the complete mobiliza- tion of our resources that the trans- portation’ systems of the country should be organized and employed un- der a single authority and a simplified method of co-ordination which have not proved possible under private management and control. “Done Their Utmost. The committee of railway execu- tives who have been co-operating with the government in this all important matter have done the utmost that it was possible for them to do; have done it’ ‘with patriotic zeal and with gteat ability; but there were difficul- ties that they could neither escape nor neutralize. Complete unity of admin- {stration in the’ present circumstances involves upon occasion and at many Points dislocation of earnings, and the committee, was of course, without power or authority to rearrange charges or effect proper compensa- tions and adjustments of earnings. The Willing Suffer. “Several roads which were willing and with admirable public spirit ac- cepting the orders of the committee have alf¥atty suffered from these ci cumstances and should not be requir- ed to suffer further. In mere fairness to them the full authority of the gov- ernment must be substituted. The government itself will thereby gain an immense increase of cfticiency in the conduct of the war and of the innum- erable activities upon which its suc- cessful: conduct depends. Public Interests First. * “The public interest must be first served, and, in addi interests of the gov: financial interests of the railways must be brought under a common di- rection. The financial operations of. the railways need not interfere with the borrowings of the government and they themselves can be conducted at a greater advantage. Investors 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 directors of the several railway sys- tems. Guarantees to Investors. “Immediately upon the reassem- bling of congress I shall recommend that these definite guarantees be giv- en; first, of course, that the railway properties will be maintained during the period of federal control in as good repair and as complete equip- ment as when taken over by the gov- ernment, apd, second, that the roads shall receive a net operating ircome equal in each case of the average net yme of the three years preceding fune 30, 1917; and Iam entirely conti- that the congréss will be dispos ed in this case, as in others, to see that justice is done and full security assured to the owners and creditors of the great systems which the gov- ernment must now use under i{s own KING THINKS STATE © and I believe there will be less of it next session.” , ALLIES PURCHASE GREATER PORTION -OF CUBAN SUGAR $4.80 Per Hundred Pounds, F. 0. B., at Port of Shipment ‘Paid for the Crop. DELIVERY. AS FAST AS SHIPS CAN CARRY ‘New York, Dec. 27.—Negotiations for the purchase of a large part of the Cuban sugar crop, now being harvest- ed and amounting to an estimated 3,- 600,000 tons, for the use of the United States and its allies, have been vir- tually completed by the international committee and the Cuban committe, appointed by President Menocal of Cuba, it was announced here today. The price was said to be $4.60 a hun- dred pounds, f. 0. b., Cuba. The formality of the agreement, it was said after a joint session of the two committees today will be com- pleted within ten days or two weeks on the return here of ‘Sir Joseph White Todd and J. Ramsey Drake, the British members of the international committee., They have been making a tour of the Cuban sugar fields as a result of the negotiations. which were started some time ago. Meanwhile, it was -. announced, Cuban producers, will make every ef- fort to forward their new. sugar. crops as fast as ships can be obtained..The stringency will also be further reliev- ed, it was stated, by the release for domestic consumption of 4,000 tons of sugar for Swedish shipment, which is held: here. Tribune want ads bring results. MINNEAPOLIS MILLS GRIND WAR FLOUR USING THEREIN 74 PER CENT OF WHEAT BERRY INSTEAD OF 0; 9 GRADES ONLY Minneapolis, Dec. £27—Local_ mill: Wednesday began grinding “war flour” ‘The chi esulted { sha: ti * e change r ed in a rp re- ey ate government regulations ‘auction ia bran prices, and a drop in lesigne ‘0 save 16,000,000 bushels of ' the prices of other by-products also wheat in the present crop year. Un: is expected. der fhese regulations, which provide| Members of the food administration very embarrassing entanglements, United States Last. “The government of the United States is the only great government now engaged in the war which has not already assumed control of this sort. It was thought to be in the spirit of American institutions to attempt to do everything that was necessary through private management, and if zeal and ability and patriotic motive could have accomplished the neces- sary unification of administration, it would certainly have been accomplish= ed; but no zeal or ability could over- come insuperable obstacles, and I have deemed it my duty to recognize that fact in all candor now that it is demonstrated and to use without re- serve the great authority reposed in me. A great. national necessity dic- tated the action and I. was therefore not at liberty td abstain from it. “WOODROW WILSON.” WILE ADOPT CANADA PLAN OF INSURANCE Hears From Brother of Success of Compulsory Hail Law.. Senator Carol D. King of Menoken, one of the league leaders in the last session, is confident that North Da- kota will adopt the new hail. insur- ance amendment to the constitution when the pcopie are given a chance to vote on it next fall. Senator King has as his guest his brother, Walter King, a Menoken boy who went to Alberta several years azo, and who has made a success of farming there. King is familia: with the dominion plan. of compulsory hail insurance. He states ‘that it costs him and his neighbors $8 for a. quarter, section annually, and that it has proved entirely satisfac- ; the output will be. listed as war flour of first and second grades. tor th " milling division said that because of Ge e use of 74 per ae of the wheat | the large supply of flour now on the erry instead of but 50 per cent, twol market it will be some time before | war flour reaches the consumer. grades of flour will be eliminated and WILSON SETTLES} GRAVEST ENIGMA SINCE WAR CALL Government Cintro! Will Go Far to Settle Muddled Traffic Conditions. WAR BOARD SCHEME GOOD Policy of New Director. Will be|_ to Eliminate Duplication and Wasted Time. St. Paul, Minn., Dec. 27.—With- out the least of dissension, four railway presidents, Louis W. Hill, of the Great Northern; J. M. Hannaford, of the Northern Pa- cific; Edward Penington, of the ~ Soo line, and Jas. P. Clark, of the Chicago, St. Paul, Minneapolis and Omaha, and other high offic- cials here Wednesday, met the an- nouncement of President Wilson that the government would oper- ate the railroads after Dec. 28 with pledges to co-operate unfe- servedly with the president and Secretary McAdoo in carrying out their plans to run the transporta- tion systems of the country. The selection of Secretary of the Treasury McAdoo as.general director of the railroads was praised by officials, Louis W. Hill, characterizing him as the best man President Wilson could have named for the place. BEST AVAILABLE PLAN. direction or else suffer serious embar-| tory. The Canadian also believes thor- Nearest Approach to Solution of Ills ; Possible. Washington, Dec. 27.—The ratiroad situation ‘has ‘presented one of the greatest problems that have arisen in the prosecution of the war. Govern- \ ment control, although not offering an entire solution, ‘will, many officials be- eve, go far’ toward relieving man: transportation ills. ; 1 War's, demands on-rafiroad facilities rly, by, railroad oftic- vials gha-five. after, war was, de- Clared the heads of the'principal sys- tems met in Washington ‘and’ formed a committee of; five rail chiefs to di- | rect the roads, as nearly as possible as one continenta} system. The five men named were called the railroad’s war ‘board they were: Fairfax Harris: on, of the Southern railway, chair- | man; ‘Howard Elliott, of the New Hav- n, Samuel: Rea;:of the Pennsylvania, Hale Molden of the Burlington, and Julius Kruttschnitt of the Southern Pacific. Mi Much More’ Traffic. ‘The board has co-ordinated railroad operation that the roads are said to be carrying 25 per cent more traffic than.they ever moved before. As war prepearations increased traffic be- came constantly heavier and a month ago the war board named a general operating committee for eastern rail lines and announced that it would pool all trackage and facilities, including cars and locomotives. Meanwhile traffic had grown to such ‘proportions that the roads could not handle it, and jn the east many ; terminals were congested with frieght. The war board has declared that the only: way to meet the situation, either under government or private opera- tion, is to deny transportation to non- essential products. The war board, it Is said, does not oppose government operation, nor it is said, do the brotherhood chiets. Guiding Policy. One. of the new ‘direttor's guilding policies will be the elimination of duplication and resultant waste in operation. Mr. McAdoo is known to believe that hundreds of millions of dollars can be saved the railroads and the American public by pooling traf- fic and facilities, and that ultimately the greatest benefit will accrue to the railroads themselves It is considered improbable that a large department with many employes will be created for the railroad admin- istration very #oon. The railroad war board already has quarters here and the secretary probably will function largely through it. Edward Fennington summed up well the position of his- colleagues in the railway world when he said that if government operation of railroads “pleases the president of the United States it pleases me.” The declara- tion of J. M. Hannaford that the roads will do all they can to carry out the wiShes,of the president made it clear that no envy will stand in the way of the railway officials to make the plans cZ Secretary, McAdoo successful. Louis ‘W. Hill, said: “When I read Sunday that the gov- ernment might take over the railways and that Secretary McAdoo was un- der consideration for the position of director-general, I wired to Mr. Mc- Adoo telling him that I was anxiously j awaiting verification of. the report. | Everybody connected with the Great ‘Northern is happy to hear of his ap- pointment. This railroad will do ey- j etything possible to support him and President Wilson in operating the | roads. T'm sure Secretary McAdoo is_ the best man the president could se- tion Systems of United States Including Rail and Waterways in Hands of Secretary © - of Treasury McAdoo to Operate as Unit in Vital Contingency of War lect for the place.” WERE P| ED FOR IT. Chicago, Dec. 27.—Hale Holde, pres- Ydent of the Chicago, Burlington & Quincy, and a member of the railway board of the national council of de- fense said: : 4 “President Wilson indicated the pos- sibility of such action as he has taken i at a conference with railroad men sev-| eral weeks ago. I believe the presi- dent has a deep sense of his respon- sibility to the people and to the rail- roads. He realizes the difficulties of the railway heads in securing capital under present war condiitons. The railroad men will co-operate with him to the fullest in solving the problems of transportation presented by the unusual conditions.” ® — CANADA ADVANCES RATES. Ten Per Cent in West; 15 Per Cent + in East. Ottawa, Ont., Dec. 27.—The railway board has granted the applications of the Canadian railways for a general advance in freight and passenger rates. These increases are, roughly, for freight, ten per cent, in. the west and 15 per cent in the east. On coal an increase of 15 cents a ton is allowed. GOAL SUPPLY HELD . BY TRAFFIC TIBUP Garfield Talks to the Senate Commitiee. Washington, Dec. 27.—Much of the effect of the fuel administration's work has been mullified, Fuel Admin- istrator Garfield told the senate com- mittee investigating the coal situation Wednesday, by the-transportation tie- up. He said little relief could be ex- pected until the rajlroads were:.put under one management, and that if the. war continued a long time, it would be necessary forthe govern- ment to take over the coal supply and parcel it out equitably. The administration's efforts have been directed to a great extent to the stimulation of production to meet de- mands of the war, but Dr. Garfield sald, because of the traffic. congestion, “the more we produced the more trouble we added to the railroads,” Te normal ten per cent over the pro- duction of last year nas been main- tained, he added, though the war has brought a demand for an additional ten per cent over. the 1916 output which has not been met. . >. In the past few days the private sideration ‘than heretofore, Dr. Gar- field explained. Conditions. already are better, he stated, though the sit- uation would not be well in hand until transportation facilities were greatly improved. Dr. Garfield said he believed many operators, were making more money than ever before. Good prices he re- fortes as necessary to large produc- ion. Senator Vardaman, a member of the committee, insisted that the operators were “plundering and robbing” the people, and the whole power of the! fuel administration should be employ: | ed to stop it. Dr. Garfield completed ‘his testi- mony today and tomorrow Ohio offic: , fals are to testify as to the recent coal shortage in Ohio. DESTRUCTION OF SUBBOATS DIMINISHING London, Dec. 27—The losses to British shipping show a material decrease for the past. week. Ac- cording to the admiralty report to- night eleven British merchantmen of 1,600 tons or over were sunk during this period by mine or sub- marine, as well as one merchant- men under that tonnage and: one fishing vessel. The summary: Arrivals 2,316; sailings 2.460. British merchantmen sunk by mine or submarine 1,600 tons or over, 11; under 1,600 tons, 1; fish- ing vessels, 1. British merchantmen unsuccess- fully attacked, 12, including two previously. For the week ended December 19, seventeen British merchan- tmen were sunk, 14 of them of more than 1,600 tons. In the prev- fous week the losses were 21, 14 of them of more than 1,600 tons. Always ‘something good to eat, steaming hot, served properly and at: tractively, day or night, at the McKen: zie.dairy lunch. [C UTILITIES | ¢ VITAL NECESSITY IMPELS VIGOROUS RAILPROCERDING Unified System of Transportatiin Operates Under Orders of One Man. McADOO DESPOT OF TRAFFIC Continues for Duration of War With Bond and Stock Own- ers Guaranteed. Washington, Dec. 27.—Governmeat Possession and operation of the na- claimed by President Wilson Wednes- day to hecome effective at noon Fri- day, December 28. William G. Mc- Adoo retaining his place in the cab- inet as secretary of the treasury, is placed in. charge as director general of the railroads. Every railroad engaged in general transportation, with its appurtenances, including steamship lines, is taken over and all systems will be operated as one under the director general. In a statement accompanying his proclamation, the president announced that as soon as congress reassembles he will recommend legislation guaran- teeing pre-war earnings and mainten- ance of railroad properties in good re- Government Backs Securities. Government backing will be given authority of the government must be substituted.” Details to Work Out. The plan of control as outlined in the proclamation and statement leaves much unsaid as to details, but the gen- eral scheme appears to follow closely the British system. In England, how- ever government freight is carried free and the guaranteed earnings re- quire an enormous amount of money from government funds, while in the United States the. government will pay for its freight as in the past and will stand its part of increased freight tariffs if they are found to be necess- ary. Aside from the. president’s , state- ment there was no comment in the capitol tonight on the government's . move. Secretary McAdoo declined to be quoted and members of the rail- road’s war boaid said they would have no siatement to make until tomorrow. WALLA CASE MAY ‘tion’s railroads for the war was = Not BE TRIED AT YEAR END COURT Judge Nuessel Has Only a Few Days in Which to Ciear His Calendar. POSSIBILITY. GF A CHANGE OF VENUE | There is little likelihood of Eugene M. Walla, former clerk in the automo- bile department of the secretary of state’s office, being tried,.,on the charge of embezzlement,ai;this term of the Burleigh county district court. to’ new issues of railroad gecurities Judge Nuessle is to preside. over the that a ready market may be found. | Morton ‘county. district court begin- The president's move, although fore-; ning in Mandan on January 7 for cast for weeks, came at this time as Judge Hanley, now in France at the a great surprise to nearly everybody head of a battalion; the criminal cal- in Washington, including railroad of-' endar on the Burleigh court's Decem- ficials. It had been generally believed ' her term is very heavy, and there is he would await the reassembling of little likelihood, that it will be possible congresa before taking any steps. He to move the Walla case .tefore the acted through Secretary of War | middle of next week. In the event the ‘Baker under authority conferred in the army appropriation act. Direct management of the roads will remain in the hands of railroad offic- jals and the railroads war board, com- prised of five railroad heads, will con- tinue to direct actual operation under ae Unification of Systems. ‘The chief practical effect of govern- ment operation will be to permit a complete unification of all rail sys- tems, imposible under private opera- tion by reason of statutes prohibiting pooling of rail traffic and earnings. The roads themselves had gone as} far as they dare.d in this direction, and it became known only today that they had been warned by. Attorney General Gregory that a violation of anti-pooling laws could not be per- mitted. This situation was fully realized by President Wilson, who in his state- ment declared the railroads bad gone as far as they could and that already some systems were endangering their earnings in attempting unification. Although the proclamation applies to all electric lines engaged in gen- eral ‘transportation local interurban systems are specifically exempted. Guaranteed Earnings. Congress will be asked to guarantee earnings equivalent to the average net operating ‘income of each railroad in the three-year period ending June 30, 1917. Railroad experts! estimate that this will. cost the government next year in the neighborhood of $100,000, 000 which can be raised in large part by increased freights in the interstate commerce commission grants the roads’ aplication for the 15 per cent rate increase now pending. Otherwise it will be paid largely out of the gen- eral government funds. The interstate commerce commis- sion and other government agencies which-have to do with the railroads will continue to perform their func- tions as heretofore, except that they will be subject to orders of the direc- tor of railroads. The president makes it clear that his decision was not made by any failure on the railrods to perform their whole duty insofar as they could while hampered as they were by legal restrictions. “The committee of railroad execu- tives,” said his statement, “have done the utmost that it was possible for them to do, but there were difficulties they neither could escape nor neutral- ize. In mere fairness to them the full SQUADRON OF BRITISH AIRSHIPS ON RAID OF REPRISAL BARELY MISSES CHANCE T0 DROP BOMBS ON KAISER’S SPECIAL TRAIN Geneva, Dec. 27.—The German em- peror, returning with his staff from the Verdun front, had a narrow escape during the reprisal raid of a British air squadron on Mannheim Christmas eve, according to a dispatch from Basel. Only. about an hour earlier the emperor’s special train left the station which was partly destroyed by several bombs. A section of the tracks was torn up, cutting communication north. In fact the emperor's train was the last to leave Mannheim, and ne trains arrived at Basel yesterday from that city. Two bombs fell on the palace and one on the suspension bridge across the Neckar river, both structures be- ing badly damaged. An ammunition factory in a northern suburb was blown up. A considerable number of persons were killed or injured with- in the town and several were blown into the Rhine. Secretary McAdoo’s general supervis- | consumer has been given mor, ¢on-| !2- case does come up then, it would be necessary to draw a new panel, it is : believed, the present veniremen hav- ing heard a great deal about the case and many of them having listened to 1 Walla’s own testimony, and by the time this was done the Morton county court would be ready to, begin grind- ‘here is a possibility ofa’ change of ; Venue, being taken to Morton county, jin which case Walla would be tried there before Judge Nuessle. “The trial of Mr. Walla will be conducted in ex- actly the.same manner as that of.Mr. Hall,” said Attorney General. Langer j today. REPORTED GERMANS GRANTED 48 HOURS 10 MAKE DECISION Petrograd, Dec. 27.—It is. reported that the German delegation which was expected in Fetrograd today is at Dvinks instead, fearing that a visit to Petrograd would be misinterpreted. There is an unofficial report, which can not be confirmed that the Rus- sians have given the Germans forty- eight hours; in which to accept or re- ject the Russian peace proposals. ADMIRAL JELLICOE | RAISED TO PEERAGE London, Dec. 27.—Vice Admiral Sir .Rosslyn Wamyss has been appointed first sea lord in succession to Admira] Sir John R. Jellicoe, according to an _ Official announcement issued last evening: Admiral Jellicoe has been elevated to the peerage in recognition of his distinguished services. The hope is expresséd that his experience may be pees later in- another important Post. . Sloan’s Liniment goes right to it. pobepe dt ee ow can finds quick ond efceive relict {in 3 Liniment. ‘Thousands of handy for TL Sloe Tinime XIN