New Britain herald., 1918-01-24
TEN BILLION BY
 JUNE IS PROGRAM
MAdoo Says Railroad Legislation
 Is Necessary to Win War

Washinuton. Jan. 24.-WHliam c. i McAdoo stepped m0rnehtarlIy late
 yesterday from the dlrectorShip of railroads to the secretaryship of the . treasury and urged on the house in terstate and foreign commerce com 1 r,ittoo that the immediate passa go } of the administration railway bill vas necessary to the success of the nations financial war plans.
 The stabilizing effect of the bills ! success he declared. was needed to ! insure the governments program of raising 10,00O,000,000 between now l and June He left the definite i'm l pression that this amount was to be raised by the sale of government securities. Chairman Sims assured Secretary McAdoo for the committee of it's prompt consideration of the measure.
 "Over and above the deficit and other measures now before congress" said the secretary. the government faces the necessity of raising Sl0,- 900, 0,0o0,000 between now and June. With our financial situation as 1t IS now-uncertainty largely prevailing We can do nothing. Our savings banks investment concerns and other fiduCiary institutions hold $4,OOO,- 900, 1000 of railroad securities. So long as these institutions arc uncertain as to the status of the securities they hold, what income they will get, and what the future holds for their in terest and dividends, they are in no position to buy the bonds which we must offer.'
 Secretary McAdoo said that while he had definite ideas against fixing definite duration of time after the var within which the railroads must be returned to their owners, he would cheerfuly accept the bill in any form the committee prepared it. The prime necessity, he urged, was speed.
 The witness went eXhaustively into the proposed needs of the carriers, and his policy toward them, supple mentiI the testimony he gave before the senate committee. He said the necessity for the $50O,o00,000 fund proposed in the bill was due in part to need of maintaining and improving the roads and in part meeting their maturities and aiding those in a weak credit position Asked what sum to- l tai the government might finally ex-
 
 following figures on the roads own expenditures for the last five years: 1912, $477, ,00o; 1913, $60o,O0O,- 900: 1914, $550, ,Ooo,0O0; 1915, $263,- 900, 900; 1916, s2S1, 100000.
 MT. McAdoo added that he thought the $5oO,o00O0o should be regarded as a one-year appropriation, and that if government control should last longer, similar sums might have to be asked of congress periodically. He hoped to add to this sum by the profits which the government, by unified operation and other econo- mics, might effect.
 With respect to maturities," he said, 'I hope the railroads, aided by the government guarantee, will be able to take care of their own. If it should be required, government aid should be given wherever it is neces- sary to protect the credit position of roads taken over. I assume first rate railroad bond, guaranteed IS it Is by the government should easily be refunded. The great needs of the government are such at any rate that all bond flotations necessarily will have to be conducted with the ap proval of the national treasury Representative Winslow of Massa- chusetts asked If railroad employees were not becoming lax in their duties under federal control
 At first there was a disposition" said MT. McAdoo, "both on the part of some officials and employees, due to the uncertain position in which they felt themselves. It was a nat ural disposition and lasted only a short time. I am glad to say now I am receiving the most loyal co-opera- ton from both the officials and the employees of every class"
 Representative Decker of Missouri said he had been greatly impressed with the argument of Clifford Thorne that the Interstate Commerce Com mission should retain it's right to fix rates, allowing the director plenary powers as to operation.
 With the control of the roads in the presidents hand" replied MT. Me Adoo, lit is essential that he should havo tho same full control over their properties as he has to send men into battle.''
 
 NOTED SPEAKER HERE.