he government had taken over all of the railroads, the
necessity for working in harmony with the organization that was placed
in charge was apparent, and the Railroad Administration was requested to
recommend a competent traffic man to handle the work. This resulted in
the selection and assignment of Mr. H. M. Adams as chief of the section.
He in turn secured his expert assistants through the Railroad
Administration.

At the time the section was formed approximately 15,000 carloads of War
Department property held in cars were congesting various Atlantic ports.
Steps were taken which relieved this condition and brought about an
orderly movement of the traffic when and in the quantities desired. The
value of the inland traffic service was soon demonstrated and led to a
reorganization, with authority to take over the transportation
organizations of the various bureaus of the War Department, both at
Washington and throughout the country, so that as now organized the
chief of the inland traffic service exercises direct control of the
transportation of troops, of the supplies of and for the various bureaus
of the War Department, and for the contractors working for the several
bureaus. This control extends over the entire country through the medium
of representatives stationed at various traffic centers.

Working in conjunction with the Railroad Administration has resulted in
minimizing the burdens of the carriers. The work has been performed most
efficiently. More than 5,000,000 troops have been moved from their
homes, from one camp to another, and from camps to the points of
embarkation within the period covered by this report.

Arrangements have been made by which this branch will take charge of all
express movements for the War Department, as well as the tracing of the
movements of all War Department property, including the contractors and
others for the various bureaus.

Purchase and Supply.--The Purchase and Supply Branch is organized into
the following subsections: Supply Program, Purchase, Production,
Finance, and Emergency.

MILITARY INTELLIGENCE DIVISION

The Military Intelligence Division has as director Brigadier-General
Marlborough Churchill, United States army, Assistant Chief of Staff.
This division, which had been a branch, first of the War Plans Division
and then of the Executive Division of the General Staff, was separated
completely and made an independent division by general orders which
reorganize