Evening star., 1918-01-19
Mr.. McAdoo Explains to Sem
ate Committee Government
Control of Railroads.
SHORT LINES, IF "HIT,"
MAY RESORT TO COURT
Not the Purpose to Compensate Car.
riers Not Taken 0ver-Urges
Quick Passage of Bill.

Government operation will be extend
ed to canals and inland waterway,
should such a course be found neces-
sary, William G. McAdoo, director gen.
eral of railroads, told the Senate inter
state commerce committee today. Mr..
McAdoo was summoned by the commit
tee to explain the operation Of govern
ment administration Of railroads.
He said the so-calred short-line roads,
and branch lines would be released
from government operation as soon as
Investigations now under way de-
termine they were not necessary for
successful conduct OF the war. The
director general further stated that he
did not propose to compensate roads
not taken over and If they were
hit they would have to bear 1t or
seek redress in the courts.
Results of Federal Control.
Rerouting and better Distribution
have resulted from tho three weeks
of federal control, he said. and he eE-
planned that the roads were taken over
mainly because of the lack Of facilities
to handle increased war trafhc ana fatl-
ure to unite in use OF existing eQuip-
ment.
The director general insisted this pre-
posed $500. .0O0. 600 fund was necessary to
make good any deficiency" but he
hoped the saving effected by operation
as one system would not result in q de-
dciency.
ITnon his reouest a short executive ses.
sion was held, at which Mr.. McAdoo
urged upon the committee the iinportance
of passing the railroad bill without delay.
This he declared is necessary in order
to clarity the financial situation. SO AZ
to enable the government to float $10.-
000, 900, 600 in liberty bonds before June
so, the end of the fiscal year. Some
members of the committee told the OIL
would be adopted more readily If fixed
time was named in the bill for return
ing the railroads to their former control
Director McAdoo then attempted to JUS
tify the present provision which makes
the time indefinite. Director McAdoo
agreed to appear before the COMMITTEES
again Monday.
Explains Purpose Of Legislation.
In explaining the purposes OF the ad"
railroad legislation Direc.
tor General McAdoo said he did not pro-
pose to keep control of any unnecessary
lines nor have the government compen-
safe those not taken over.
LAS far as ! can see after three weeks
preliminary investigation" said Mr.. Nc
Adoo Il don't contemplate taking over
any roads not necessary for the governs.
ment's war purposes and if some inter.
ests necessarily get hurt by it they will
have to stand it.
senators
that small independent short lines
feared bankruptcy if the government
took control Of the large trunk lines,
and that the government should take
st can't tell yet" Mr.. McAdoo replied.
what will be essential for the purposes
of the war. The Treasury. already
can't be called upon to
direct injury. I don't think the govern.
ment should draft into its service .
needless railroad any more than IL
should draft a cripple into the military
service. There is no intention to do any
injustice to the short lines. They VIII
be helped as far as possible consistent
with the needs of the nation"
Chairman Smith suggested that the
short lines are in a difficult sftuation
because of the sudden transition Of the
systems from a competi-
tive to a controlled basis.
"Hollering Before They're Hit"
"It seems to me-" Mr.. McAdoo re-
piled. that the short lines are holler-
ing before they're hit. The bill ought
to provide compensation for railroads
only that are really used and injured.'
do you consider these short lines
ire part of the continental eystemf~
lsked Senator Smith.
81 would consider tFem So" Mr.. Nc
Adoo replied. 'if they form a part Of
he system utilized for war necessities.
have assumed that the bill will not
leal specifically with questions as to
what should or should not be taken
,ver by the government under the
proclamation. That has got
o be determined after an investigation.
Ny own opinion is that 1t Is the duty Of
ible. to determine what railroads or
,arts of railroads are needed by the
and to notify the carrferA
That Is now in process.
"As to railroads taken over. compen-.
alton is provided under the law we are
,oing to pass. AS to those outside It
GEMS to me any injury is matter for
he courts to determine. I don't be-
ieve the law should require compen-
alton to railroads whether the govern
nent needs them or not.
''There is no disposition to rip anybody
p the back. It's the governments desire
0 treat small as well as big roads A.
quitably as is possible. as far as is COM
atible with public use and interest All
he lines excluded from government con-
rol ought to be kept going. encouraged
nd treated by the government with ut
lost fairness and consideration"
Senator Robinson, democrat. Of Ari.an.
as. asked Mr.. McAdoo to tell the com.
,ittee why government operation Of rails
pads was necessary.
Better Cooperation Needed.
Mr.. McAdoo replied that he did not
aink he could add anything to what al
sady had been said. but he thought IL
ecessary to get better cooperation Of
10 transportation systems for the war :,
"Is it your opinion that the congestion
: the railroads resulted from lack OF
lcilities or the lack of proper use?'s
sked Chairman Smith.
"Both 1t grew out OF the lack Of
acilities and the failure Of the sepa-
,te roads to coordinate"
When the government took over the
,ads about 700 locomotives were on s
rder by the various carriers. Mr. No
Non aaid hA orderAd that tfA lnrnvnA~ti -