Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-02-23
M'ADOO HOLDS THE BIG STICK"
He Will Dominate Investment Market and Can Pre-
vent State and City Loans for Public
improvements

Special Correspondence Evening Public Ledger
WASHINGTON, Feb. 22.
DY ALL odds the biggest man in Washing.
- ton just now--the President only ex-
cepted-is the Secretary of the Treasury. Mr.
McAdoo. Born in Georgia, educated at the
University of Tennessee. a lawyer in Chat
tanooga until 1892, when he removed to New
York, where he continued the practice Of
law. but soon gave over to the installation OF
the Hudson River tunnel system, Mr.. McAdoo
has easily become the most powerful member
of the present Administration.
During the present week he has been the
center Of all discussion in the Senate and
House In connection with the railroad control
bill and the bill to create War Finance
Corporation. which, If they pass substantially
as written. will place in Mr.. McAdoos hands
the director generaship of about all there Is
of public business and finance not otherwise
corralled by the Administration.
Think of 1t for moment and determine
whether any man except a military dictator
like Caesar Napoleon ever had so complete
and general grip upon mundane anairs
In the first place. Mr.. McAdoo is very closely
associated with the President by personal
ties. He is unquestionably the premier or
the Cabinet. He Is Secretary OF the treasury
of the United States, having immediate Gus
by loan or taxation. He is the head and front
of the Federal Reserve system, wnicn Is In
substantial control. through the various
member banks and trust companies, OF
all private deposits of the people Public
as we'll as private funds are more or
less tied up with the Federal Reserve system,
which operates very much as a central bank
would If 1t were permitted to establish and
control branch banks. Mr.. MsAdoo. as hither-
10 observed, Is the head Of that system, so
that in the last analysis public and private
moneys come under his general oversight.
Big Boss of Railroads
Mr.. McAdoo is director general Of all the
railroads of the country. He became such by
virtue of the Presidents exercise of his war
mower The President proclaimed that war
emergencies necessitated the taking over of
the railroads by the Government, and where
| as they had been operating under the direc-
tion of hundreds of presidents, elected by their
various stockholders or directors. Mr.. Nc
| Adoo with the stroke OF the Presidents pen,
| became the president of them all. Congress
enters into the railroad dictatorship only to
| furnish the director general with ways and
| means which he deems essential to the per-
| formance of his trust.
| Mr. McAdoo asks for $500, 10000 with
| which TO establish the Director Generals su-
| pervision and control OF railroads which he
| proposes to use, plus the resources OF the
| various roads SO far as they shall continue
|
| maintenance. Congress has been scussing
| this phase Of the question all week. IL is
| probably opposed to the ownership OF rail-
| roads by the Government. but In the end 1t
| will likely give Mr.. McAdoo his $500. 900. .00C
| appropriation. together with the other powers
| he seeks to bring railroad transportation up
| 10 its highest state Of efficiency for war
| purposes There is dispute on between big
| railroad systems and so-caled short lines as
10 which will be favored by the Director Gen.
eral, but the Washington understanding is
| that while the big roads are not averse To
the temporary Government dictatorship. the
small roads, which cannot prove up war
| auxiliaries, are fearful that unless they re-
ceiye Government aid they will be forced to
the wall because Of the special consideration
| given TO their stronger competitors.
FOR the present Mr.. McAdoo and his aids
| saw little about their plans as TO many oi
| these perplexing questions. preferring to with.
| Mold comment until the law is finally passed
which gives them power beyond questioning
! Tying UP Investments
From what has already been stated on,
would think Mr.. McAdoo. with his duties al
| the Treasury. at the Federal Reserve Banl
| and as Director General. OF all Of the creates
Of American corporations. would have hil
ha1fok n f2lkM = Tho 9eoyetaTY A6mifs ~ hal
~ ~ - - el36Hq q % 1900