3. On April 11, 1918, President Wilson issued a proclamation taking over for the Government the property of coastwise shipping lines. 4. On May 24th, Director General McAdoo placed in charge of each railroad property a federal manager whose duty it was to report to the regional director. 5. On June 29th, the Railroad Administration relinquished from federal control nearly 2,000 short-line railroads whose control by the Administration was regarded as not "needful or desirable." During the first six months after the United States entered the war statistics showed that the railways not only handled far more traffic than in any earlier six months of their history but also as much as in any entire year prior to 1907. It will be remembered that the years 1906 and 1907 marked the climax of a long period of rapid increase of railroad business which resulted in the longest and most acute congestion of traffic and shortage that had ever been known prior to the war period. The grounds offered by the Government for taking over the railway systems during the war might be explained as the resultant of the findings of the Interstate Commerce Commission on December 5th, in which it was stated that the claim of the roads for higher rates could not be granted. "From the standpoint of the Government three principal reasons are seen for the taking over of the lines: "1. The avoidance of obstructions to transportation due to the routing and division of freight, intended to give a fair share to each line in a given territory. "2. The abolition of preferences to given shippers and kinds of freight, and the centralization of control over priority in shipment. "3. The practical termination of rate controversies and labor discussions as between private individuals and the placing of the roads on a semi-military basis. "The railroads themselves have received the announcement of the President's action with much greater equanimity than could have been expected. They undoubtedly see in the step the following advantages: "1. Assurance of a moderate if not generous income in a period of great uncertainty and difficulty, during which they have been caught between the upper and nether millstones of fixed rates and advancing costs and wages. "2. Termination of the danger that threatened them from the continually maturing obligations which ordinarily they would have little trouble in refinancing, but which, under existing conditions, can scarcely be provided for on any basis. "3. Provision of means for betterment and improvement at a time when such provision can be had practically only through government orders designed to place such requirements ahead of those of private concerns." OBJECTS OF GOVERNMENT CONTROL