e most room for additional traffic. At the end
of 1917, as a measure of economy and to secure even greater unity of
organization, the government took over the control of the railroads for
the period of the war. As Director General of Railroads, the President
appointed William G. McAdoo, who was also the Secretary of the Treasury.

Half a year later, the government likewise took over, for the duration
of the war, the operation of telegraph and telephone lines, which were
placed under the control of the Postmaster-General.

SHIPBUILDING.--Less than two weeks after the declaration of war the
United States Shipping Board Emergency Fleet Corporation was organized
with a capital of fifty million dollars all owned by the government. The
Shipping Board had been formed some time before to increase the merchant
shipping of the country. When war came, more and yet more ships were
needed, not only to take our armies, and their food and fighting
material, to Europe, but also to replace the shipping destroyed by
submarines. In order that these ships might be built as speedily as
possible it was desirable that the government should direct the work.
Existing shipyards were taken over, and new shipyards were built by the
government. In the building of ships the original program was more than
doubled, and the United States became the greatest shipbuilding nation
of the world. This was made possible largely through the construction of
what are known as "fabricated ships"; that is, many ships built exactly
alike, from parts made in quantities. Patterns are made for each special
piece of steel and sent to steel plants in different parts of the
country. There dozens of pieces are made exactly like the pattern. All
the pieces for a ship are sent to the shipyard ready to be riveted in
their proper places. Thus the shipyard can work much faster than if the
pieces were prepared at the yard.

GERMAN SHIPPING SEIZED.--Immediately upon the declaration of war, the
President ordered the seizure of ninety-nine German merchant ships
which were in our ports. Most of them had been in harbor since August,
1914. They had been free to sail if they wished, but preferred not to
risk capture by British or French warships.

When the United States officials took charge of these vessels, it was
found that important parts of their machinery had been destroyed or
broken, under orders from Germany. Repairs were quickly and skillfully
made, the German names of the