Evening journal., 1918-12-12
M'ADOO URGES five
YEAR ROAD Control
Return of Lines to Owners
Disastrous, Director
Declares
NEW LEGISLATION
Is SUGGESTED


OF the period Of government control O
railroads for i've years. until Januar!
4, 1921, has been recommended to Con
sress by Director General McAdoo.
Advantages Of this, Mr.. AIcAdoo said
are that It would take the railroad
question out Of politics for the present
give time for carrying out an exten-
sion program for improvements, anC
provide opportunity for a fair test ol
unified control to indicate the perma
nent solution Of the railroad problem.
"The President has given me permls-
sion to say that this conclusion ac-
cords with his own view Of the mat
ter" Mr.. McAdoo concluded.
The letter was addressed to Senator
Smith, OF South Carolina, and Repre-
sentative Sims, chairmen, respectively,
Of the Senate and House Interstate
Commerce committees.
Mr.. McAdOO explained that TO con-
tinue government operation for TWEEN
ty-one months after formal declaration
OF peace under present conditions
would mean disruption Of morale
among employees and officers, and could
not enable the government TO go ahead
with improvements and purchase Of
equipment.
Another alternatlve-the prompt re-
turn OF the railroads to private control,
without legislation TO permit elimina-
ton of the old wasteful competition
would be "hurtful alike TO the public
interest and TO the railroads them
selves" he said, and the difficulty Of
obtaining immediate legislation provld-
Ing a permanent solution Is apparent.
There is one, and 10 my mind only
one, practicable and wise alternative"
Mr.. McAdoO continued, "and that is to
extend the period Of federal CONTROL
from the one year and nine months
provided by the present law TO five
years, or until the first day Of Janu-
ary.
"The American people have a right
% this test. They should not be de-
MED it. It is TO their interest that Il
should be done. In my opinion, II IS
the only practicable and reasonable
method OF determining the right sOlu-
II am not now and have not been
for the last year interested in proving
or disprOving the theory Of govern
ment ownership or any other kind Of
theory. The railroads have been oper-
ated for the last year with the purpose
of serving efficiently the paramount
needs Of the war and at the same time
the best possible service
20 the public, whether such operation
tended 60 prove or dlsprOve any theory
Of railroad control, no matter what It
might be.
II have formed no opinion myself as
10 what Is the best disposition Of the
railroad problem, because the test has
not been sufficient to prove conclusive
~ the right solution Of the problem.
Il believe that a flve-year test will
give the American people the right an
swer. An ounce Of experience is worth |
r ton Of theory.
There are those who may say that |
an extension Of five years for such a
lest will mean government ownership.
l do not believe it.
"But whether such a test would In
1icate that the ultimate solution shall
be government ownership or a modified
form Of private ownership under ef-
feotlve federal regulation, should not
cause US to hesitate or refuse TO act"
II Congress does not extend the time
Tor government control, said Mr.. Nc
AcAdOo, the railroads shall be returned
10 private management "at the earliest
possible moment"
Practical difficulties Of continuing
government operating under existing
authority. ne pointed out. are the
conflicts Of authority between
state and federal jurisdictions, made K
Iuacy Of the hah billion dollar reyolv-
ng fund for financing improvements
md inability 90 force railroads to pay
or cars and locomotives without liti-
cation and to require terminal improve
nents.