Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-09-07
PROFITS NO OBJECT
NROAD0PERAT|0N
Bent on Helping Win War, Ad-
ministrator McAdoo Not
Bothered as to Earnings.
GOOD REPORT IN DUE TIME
BY DAVID LAWRENCE.

copyright, 1918, by N. 7. Evening Post, Incl
! Director General McAdoo isn't a bit
perturbed that expenses far exceed
earnings in operating the railroads
| of the country during the month OF
June and that financial comparisons
with the situation under private con-
! troll a year ago do not speak well for
government operation.
Mr.. McAdoo. however, doesn't dis
| play the slightest concern over the
fact that railway earnings have de-
creased. One cannot talk with him,
indeed, without getting the impress
sion that his is altogether a different
point of view from those who would
attempt to derive from the present
aspect of things definite ideas as to
the relative advantages of govern
ment and private operation Of rail-
roads.
To him there are two entirely Diff
ferent uestions invqolved: Running the
railroads for profit in peace time
which means giving the pubic as llt-
tie as possible with as high an earn
ing as can be extracted from freight
and passenger trafhc-and running the
railroads in war-time-which means
giving the nation the best transpor-
tation service that human energy and
motive power can give, irrespective OF
the cost or the returns from freight
and passenger rates.
Policy to Win War.
His policy is plainly to win the war
at any cost. If it costs money to get
labor, if it costs money to get more
motive power and fuel to carry food
and munitions and hundreds OF
thousands of troops every week to
Americas war program OF many bill
lions!
Those billions represent big guns
and munitions as well as machine
guns and tanks-in fact. the whole
output of America. Director General
McAdoo conceives it his duty and OBJ
legation to move the war supplies as
well as the coal and the crops, and
move them irrespective OF how the
financial statements look right now.
But even SO, admitting that initial
costs of the first seven months of
government operation have been un-
ayoidably high and the financial
tables do not reveal the incalculable
benefits of consolidated facilities, Mr..
McAdoo says the experts had better
wait another six months or possibly
until June. 1919, and then analyze the
figures and the balance sheet. He is
confident that the month of June,
1918, will be found to have been alb
normal and that for purposes Of COM
parison between public and private
operation the showing OF June, 1918,
will be convincing proof Of the
economy and efficiency OF government
control.
But Mr.. McAdoo makes it clear that
to accomplish that result. His pro-
gram must be to disregard the even
tual and keep his mind focused on
the present.
The public will have ample time to
make up its mind what 1t thinks of
government control and will decide
what to do about the railroads on the
basis of the facts and experience be-
fore it at the time the decision or
settlement of the issue must be made.
Mr.. McAdoo's prediction is that unified
control under the government will
he isn't trying in his operation of
the roads to make a good case for
government ownership.
Anticipates Good Showing.
He may be mistaken about the out
come. But his guess Is that the rail-
roads will prove to have been most
economically managed for the tre-
mendous service required OF them.
The director generals methods are
much like those Of q military COM
mander on the western front. He
doesn't have to worry how much the
shells and munitions cost which he
lays down in q barrags dre. He
doesn't dare to do 90.
AS Mr.. McAdoo said to = friend the
we've got those Germans going
now. And We must keep them going
east"
That's his whole philosophy He
knows that II at this period Of in
creasing production the transporta-
tion systems of America are not equal
to their job the war cannot be won.
So Mr.. McAdoo has concentrated all
the repair facilities and sought to
keep his locomotives in a high state
of efficiency. His idea Of a bad
order" locomotive Is ono that 10 out
Of order for even twenty-four hours.
That is one reason why under gov
ernment control the statistics have
shown an increase over, "bad-order'
locomotives under private manage
ment
Another thing. when the railroad
administration ordered locomotives
and extra cars 1t expected to get