New-York tribune., 1918-01-22
Director General Favors
Retention Until New
Laws Are Enacted
Says He Is Opposed to
Federal Ownership
Insists, However, Changed
Conditions Will Make
Some Sort of Govern.
ment Control
Necessary

NASitINGION, Jan. 81. - Directo
General McAdoo told the Senate Inter
state Commerce Committee to-day h
thought the government should rctai,
operation O: the railroads for som,
nme alter peace comes. and not return
them 20 private ownership unit! new
and comprehensive laws had been en-
acted TO govern them.
81. shoHld be borne in mind" sal.
Mr. McAdoc. that hy the end Of tn,
war the public and shippers will be
accustomed to dealing with the govern
ment, and am convinced that a thor
ough time should be given at the enc
OF the war before tho railroads arc
turned back to their owners"
An entire new situation, he thought
would De faced when peace came that
"ouSd have TO be met by new end COM
preheNsiNe laws, and that it would be
+ injurious to The stockholders to throw
the railroads back into private opera
ton without ;irst al42ting "comnrehcn
Sivc and - >ioNal ie~islation" This. he
thought; would take time.
DO you pcrscnailN bohcVe in gov
crnment oWnership'' asked Senator
Watson.
Some Form Of Government Control
NO. replied Mr.. McAdoo, "but do
believe it Will be Impossible to turn
the roads back to their owners under
exactly the same system by which they
we're operated when the government
took them over There must he some
torn OF government control"
Nehator Watson asked if the rail
SoAdi 'Ne"r government control. would
h0t continue TO operate under their
o!d management. except for ordars
gwen s'm time 20 time by the Di-
rector Gorcrul
Iec Fundamental principles cf op-
cra ion have been changed by orders
ALREADY given. Nr. McAdoo sand. and
otheNa are III contemplation, which
change entirely the routing of traffic
Senator Kellogg asked if Mr.. Nc
Adoo believed tAs power to fix rates
should be taken from the Interstate
Commerce Commission and the state
commissions.
IT think when the Prcsidor. takes
oVeH the roads as q war measure it is
nn"ise to have anything that he cam
not CONTROL Mr. McAAoo renlicd. .If
had to MAKE application 20 thc state
con'W!SSlHnS evo"v lime / wanted 10
ftN demUrragc or a new rate. il wcu,d
Fdesroy tho effectiveness Of The who'll
government CONTROL"
Se1&tor Cummins insisted on having
.ror Nc. McAdoo an expression Of his
views on taxing away from the Inter
STATE Commerce Commission its RIGHT
to exercise authority over the roads
and placing that authority in the
hands of the President.
Would Trust Any President
81 do l,ot desire to cypress anv ]ac,
o. confidence in any board or commits
sIon, Mr.. Mc.Adoo replied, "but | foel
mat would rather place in the con
tNol OF any President. no matter who
he may be. the right to control mil
roada than IN any board or commits
sion"
After Director General McAdoo hao
undergone hall days cuestioninu,
senator La Toilette declined to pelu2;,
'he XaintnAtlon to end until he hai
opportunity TO ask some further oues-
tons. The committee asked Mr. -J,.
Adoo to return in the afternoon.
During the luncheon recess Mr. Nc
Adoo sent the committee word he could
not return to-day, but would be Glad
to do so some other time.
The standard return under the pend
ing railroad bill, to any carrier paving
dividends OF per cent or more, should
be confined to a payment Of interest
ana dividend Obligations, in addition 10
d guarantee to keep the properties IL:
good condition, maintain their credit
and build necessary improvements 3,
Cllford Thorne. counse, tor shippers.
argued to-day before the House Inter
state Commerce Committee.
Let the surplus above dividends be
divided equally between the railroad
and the government" Thorne added.
THAT Will furnish a fund for building
OF improvements on the railroad prop-
erty and provide reserve to take cave
Of the weaker lines. The stockholder
should be content if the government
gives him y government bond for his
railroad stock while the WAT lasts"