28 



SCIENCE 



[N. S. Vol. XLVII. No. 1202 



state Commerce Commission, and of the 

 other special war administrations. 



The Priority Administration has given a 

 number of special orders for preference in 

 shipment, and finally has issued a general 

 priority order, which indicates the precise 

 preference in handling the commodities 

 which are necessaiy directly to carry on the 

 war or indirectly to support the carrying 

 on of the war, such as food, feed, and 

 fuel. In short, the railroads must first pro- 

 vide for all of these needs in the order 

 prescribed, ranging from steam railroad 

 fuel through foods, to fuel necessary for 

 domestic purposes, the public utilities, and 

 for essentual manufactories, etc. Only 

 after these needs of transportation are pro- 

 vided for can the railroads handle other 

 business. 



In obeying the directions of the priority 

 administration, the railroads are, by the 

 terms of the Priority Act, freed from the 

 penalties of the Sherman and other anti- 

 trust laws. 



The situation above described in regard 

 to transportation was that in force until 

 December 28, 1917, at which time every- 

 thing was changed by the action of the 

 President herein summarized. 



In the act approved August 29, 1916, 

 making the appropriation for the support 

 of the army for the ye'ar 1916-17, the Presi- 

 dent was empowered through the Secretary 

 of War to take possession and assume con- 

 trol of the transportation of the country 

 for war purposes; and also "for such other 

 purposes connected with the emergency as 

 may be needful or desirable." A state of 

 war was declared to exist between United 

 States and Germany, April 6, 1917, and be- 

 tween the United States and Austria, De- 

 cember 7, 1917. Based upon the power 

 vested in him by the above measures, the 

 President on December 26, 1917, by procla- 

 mation, took over the entire railroad 



system of the country and also the boats 

 which are operating in connection with such 

 railroads. The proclamation not only ap- 

 plied to the railways, but to the terminal 

 companies and all the equipment of the 

 railways of every kind. William G. Mc- 

 Adoo was appointed Director General of 

 the Railroads. The proclamation became 

 effective December 28, 1917, at 12 o'clock, 

 noon, and the transfer of accounting took 

 place at 12 o'clock, midnight, December 31, 

 1917. 



Upon December 29, the Director General 

 issued his first order. It was directed that 

 the transportation system covered by the 

 proclamation shall be operated as a national 

 unit and that all facilities shall be used so 

 as to give the highest efficiency. Routes 

 designated by shippers are to be disre- 

 garded if these would interfere with the 

 speed of transportation. Traffic agree- 

 ments 'between carriers are not to interfere 

 with the expeditious movements of freight. 

 Through routes which have not heretofore 

 been established because of short hauling or 

 other causes are to 'be established and used 

 wherever expedition will be promoted. 



On January 4, 1918, the President ad- 

 dressed Congress in regard to the action 

 which he had taken. He recommended 

 that the compensation of the railroads for 

 the service during the time they are under 

 the management of the government should 

 be the average of the net railway operating 

 income for the three years ending June 30, 

 1917, and that the o^^^lers of the stocks and 

 bonds of the railroads be guaranteed that 

 they would receive this income. 



On the same day a bill was introduced 

 into Congress which proposes to carry out 

 this recommendation. The measure also 

 provides for an appropriation of $500,- 

 000,000 as a rotating fund to operate the 

 railways and to provide for the necessary 

 additions, betterments, rolling stock, etc. 



