Arizona republican., 1918-11-24
CAPITAL BUZZES
WITH GOSSIP AS
To SUCCESSOR
Goethals Hinted At For
Railroads-Glass Suggest
ed For Portfolio-Mighty
Tack For Both Officials

WASHINGTON, Nov. 23.-William
G. McAdoo's resignation as head of the
treasury and railroad administration
precipitated discussion today Of the
future status of railroads, an issue
which had been somewhat dormant up
to the present. Indications were that
a result of his retirement would be to
throw into congress and into public
discussion, much sooner than other
wise, the issue of whether government
operation Is to continue indefinitely,
whether this will be extended to gov
ernment ownership, or whether the
roads will be restored to private man
agement, with some sort of federal re-
vision to permit their continued pool
ing and unified operation.
Speculation as to Mr.. McAdoos sue
cesSors, however, took equal rank with
the discussion of the future policy to-
ward the railroads.
For the position as secretary Of the
treasury, Representative Carrier Glass
of Virginia, chairman of the house
banking and currency committee, is
known to be under serious considera-
ton by several of President Wilson S
closest advisers. Friends of Mr.. Glass
say he has a reputation for being a
close student and constructive banker
on financial subjects and for executive
ability in a number of priZate enter
prises.
Goethals for Railroads
For director general of railroads
there appears to be much more doubt
of the presidents selection. Such a
man as Major General George w
l.. TO- 411 4 H..
"a man with executive ability, not
closely connected heretofore with rail-
road mana cement, who could view
problems from the public standpoint
and at the same time could direct the
staff and organization already built uI
by Mr.. McAdoo.
On the new director general of rail-
| roads, whoever he may be, will devolve
the task of guiding the roads through
the readjustment period. This task
will apply to many phases of employ
ment conditions, rate practices, traffic
reforms, terminal consultations, dis
tribution of newly purchased cars ant
| locomotives, policies of government
| financing of additions, betterments, ex-
tensions and equipment purchases, con
! tinuation of re-routing and short haul
| ing, standardization of operating meth
DDS and measures to increase the traf
| fic capacity Of the rail system, to han.
! die the big volume of freight expected
| during the next few years.
National Policy Considered
Upon the policies of the new railroad
director will depend largely whethe
the government shall continue combin
| ing the railroads into a homogenou
unit or begin the breaking up pro
cess, in preparation for resumption O
private control From the president
selection, observers believe, may be de
termined to a large degree the attitude
of the administration on the railroads
| future.
ThlS IS one reason why the pickin;
Of a new director general is regarde,
as fraught with such unusual signifi
cance.
Although Mr.. McAdoo will retire t
private life, his friends say he has n
thought of refraining from expressin,
his ideas on governmental policie
| from time to time. Particularly vii
he remain interested in the railroa,
question, and those in close touch wit
Mr.. McAdoO would not be surprised I
see him come forward in a few month
with specific recommendations for tn
| nations consideration of the railroa
issue. Mr.. McAdoo is said by hi
friends to look with disfavor on restor
alton OF individual railroad competi
ton, and there have been many re
ports that eventually he would advo
cate complete government ownership
to be effected by exchange of govern
ment bonds for railroad securitie.
Formally and officially, however, MI
McAdoo has never indicated this att
tude.