The Washington times., 1918-01-21
BILLION IS NEEDED
FOR RAILROADS, IS
M'ADOO'S CLAIM
Continued from First Pase.)


impossible new legislation to meet
situations that may arise.
I'VE must use our best fo--s'Eht.
To throw the roads back to private
control, with competition destroyed
and one line carrying business at the
expense of another. would be a grave
mistake"
No Local Control
"Do you think the power 10 nx
rates should be taken from the Inter-
state Commerce Commission, and the
various State commissions" asked
Senator Kellogg.
"When the President is operating
the railroads think IL extremely un-
wise to hamper him In rate nxIng
matters TO meet any emergency" de-
clared McAdoo.
McAdoo cited his recent action in
New York in ordering coal trains
moved through the Pennsylvania
tunnel to get coal to freezing Long
islanders, as an instance where II was
necessary arbitrarily to set aside local
control.
freight movement through the tun-
mel is very restricted under the pub
lie service commission, he said.
"If had had to file an application to
move this freight and await decision
OF the commission, Long Island people
would have frozen to DEATH" he said.
Ose-Man COntrol.
That means, then" said Senator
Kellogg. that the rate fixing during
the war and until Congress acts
would be up to one man.
He has the power to do so. He
may not use IT," said McAdoo. He
has great many powers he doesn't
exercise"
IT haven't heard Of any he hasn',
exercised" said Kellogg.
McAdoo was asked how long, in his
opinion, It would be necessary for
the Government to retain control OF
the lines
That all depends on the length OF
the war" replied McAdoo. "If II lasts
six months or a year, the period re.
quired to liquidate the roads AFFAIRS
and turn them back will be compare
lively short. But II II lasts three 70
FIVE years the period OF liquidation
naturally will be longer. Nobody can
tell definitely; that's why Congress
should not put a hard and fast limit
on the period OF Government control.
ConDensstIoR Plan Fair.
The fact that the Government is
guaranteeing compensation, McAdoc
added, makes It unwise to leave the
State commissions, particularly, the
right to determine to any degree what
the roads earn.
Arguing that the three-year com
pensatIon basis IL a "fair and rea
sonabIe one" McAdoo said:
al Inn IN
1917, the net railroad earnings were
| 81 OBS. 900, 900. The average for the
past three years Is about $685., ,000, 900
"If the Government, with 100000.
| 900 advantage, hasn't made q fair
deal. / am frank to say do not know
what fair dealing II.
"You gentlemen must bear In mind
that what you propose you can't i'm
! pose. Your proposal Is merely q sug.
gested basis OF reachIng a compensa
ton agreement.
THE Government must not do q de,
| liberate injustice t9 the railroads or
, any one else.
No Hand In Fuel EdIct.
McAdoo had no direct hand in the
composition OF the Garfield shutdown
order to save fuel. he told the commit
tee
was the Garfield order issued to help
the director general Of railroad" asked
| Senator Watson.
"It was issued in my opinion. to help
the railroads deliver coal and also to
help save fuel" said McAdoo.
"Did you help in Its composition
asked Watson.
81 had no hand In its composition y
said McAdoo. Though I approved II in
principle"
McAdoo also expressed the hope
that IL may not be necessary to con-
| tinue the Monday holidays beyond the
middle of February.
McAdoo said every once in q
while we have to submit to surgery
you know" and declared in his opin.
ion the order will result in more
good and less confusion and trouble
than anticipated"
The order says II Is designed &c
aid the director general" said Wat
son.
May Shorten Period.
at doesn't much matter what the
order says" responded McAdoo. oil
whether It was to help the director
general personally or not.
"I am very much in the hope-and
I do not say this merely out OF op,
| timism-with reasonable weather
within thirty days conditions may be
such that we may not need to con,
tinue the order as long as It was 10.
l sued for"