For the Government to take control of the railroads was an almost revolutionary procedure, so opposed was it to American economic theory, conviction and practice. But the problem was rapidly being reduced to the bare alternatives of governmental railroad control or the losing of the war, or, at least, its long-drawn out continuance. But one solution was possible, and, disregarding all theory and all deeply rooted custom, the President, in accordance with powers already conferred upon him by Congress, took possession and assumed control of the entire railroad system of the United States at the end of December, 1917. Management of transportation by rail and water was thereupon put into the hands of a Director General of Railroads, who thus found himself at the head of more than 265,000 miles of railway, many times the mileage of any other nation, and of 2,300,000 employees. There were about 180 separate operating companies having operating revenues of $1,000,000 or more per year each and several hundred more with less than that yearly revenue. The Railroad Administration, which decentralized its work by dividing the country into districts, each under a regional director, began its task in the face of weather conditions without parallel in the history of the country, which had already almost paralyzed transportation and were to continue for ten weeks longer. There was a shortage of freight cars and of locomotives and the railroads, in common with all the country, were menaced with a shortage of coal, due mainly to the immensely increased demand and the breakdown of transportation. So great was the congestion of freight that in the area north of the Potomac and Ohio Rivers and east of Chicago and the Mississippi there were 62,000 carloads waiting to be sent to their destination, while along the lines west and south of that area there were over 85,000 more carloads held back by this congestion. Nearly all of it was destined for the eastern seaboard north of Baltimore. In addition to the usual transportation business of the country, hundreds of thousands, mounting into the millions, of soldiers had to be carried from their homes to cantonments and from cantonments to ports of debarkation and billions of tons of munitions, food, supplies and materials of many kinds had to be carried from all parts of the country upon lines that converged toward eastern ports, while the immense war building program of the nation--cantonments, camps, munition plants, shipyards and ships, warehouses, structures of many sorts--called for the transportation of vast quantities of material.