Evening journal., 1918-12-28
M'ADOO'S PROGRAM
FOUGHT BY IRIS
Director Generals Sugges-
tions for Roads Disposal
Are Disapproved
FIGHT ON THE
ISSUE Is SURE

WASHINGTON. Dec. 2s.-One Of the
big fights Of reconstruction days is
coming over the question Of what is 10
be done with the railroads. While the
carriers themselves have not finally de-
termlned all the lines on which they
will put their strength, IL has become
known here on high authority that they
are determined 20 oppose vigorously the
suggestions OF Director General Me
Adoo that the period during which the
government continues control over the
carriers be extended Ave years or they
be returned as quickly as possible to
the carriers. When the Senate Inter
state Commerce Committee begins next
week its investigation Of the subject
and lays the groundwork for legislation,
the carriers will make their position
exceedingly plain.
The first suggestion that the roads be
continued under government control for
five years Is 10 be opposed on the
ground that carriers were taken over
originally because war conditions de-
manded o., and that retention OF govern
ment control for a period OF five years
can mean nothing but an experiment
In government ownership, which may
put new burdens on shippers and the
travelling public 20 try out political
and economic theories.
At the end Of the five-year period the
railroad men assert. Il would be an al
most impossible task to restore the rail-
roads to their owners in anything like
the condition in which they We a few
months ago. so that government owner
ship enther would have become the on.y
solution. or II "unscrambling" were at
tempted, IL would take years and posi-
bly, lead 10 great loss in efficiency and
from an economic standpoint.
! The other part bf the director gen-
erals suggestion-that the railroads be
returned as quickly as possible TO their
Owners-is equally unacceptable 10 the
carriers. Their friends here point out
! that since they were taken over by the
government their wage burden a.one
has been increased by more than s700,
100000 annually.
While Il is true that rates have been
increased, also they call attention 10 the
fact that when the hand OF the gov
ernment Is lifted all the state statutes
that were in force a few months ago
governing rates will automatically be
come effective again, and revenues vii,
shrink. Interstate rates also. thoy ex-
pect, viii In many cases be lowered.
and as consequence the railroads
might find themselves with an increased
burden OF wages and greatly decreased
revenues.
Some proponents Of the director gen
erals suggestions have insisted that
either Congress must legislate in the
few weeks before March 4. when the
present Congress goes out Of existence.
or the roads must be turned hack tol
their owners. Those familiar with the
railroad contentious say that they do
not expect legislation in such short
time affecting properties worth billions
OF dollars. but they point out that by
the resolution under which the roads
were taken over, they can be retained
by the Government for twenty-One
months. not after the signing Of the
armistice. but after the peace treaty is
ratified by the Senate and promulgated
by the President.
Action on the treaty is certainly not
looked for before late in the present |
session. and II would not surprise OBJ
servers here II a special session would /
cured Looking at the question from
this angle the railroad men say there
Is no reason either TO dodge the issue by
throwing the roads back into private
hands al once or attempting TO rush /
through legislation OF such Importance
In few weeks.
The exact proposals the railroads VIII
make 10 the Senate Committee for leg
islation have not been actually framed,
but it Is known here one OF the most
important will be a suggestion that
the theory OF rate-making be changed
to the extent that rates may hereafter
be not only reasonable as at present,
but that they may also be adequate
sufficient 10 enable the roads TO keep /
up 10 their expenses. to expand so far
as commerce demands il ans maintain
the equipment and roadbeds in good
condition.
Various estimates OF the amounts re-
ouired 10 keep the roads in live state
have been made in the last few years,
ranging from that Of the late James J.
Hill of a billion a year 10 that Of Dl-
rector General McAdoo OF s5OOOVoOOO
. wear for five years. The railroad
in congressional hearings OF
late years, however, has always been
that some method must be found by
which ihe roads could be assured OF
sufIicient income 10 enable them 10 get
the capital TO make the necessary ex-
nansions and maintain their condition.
Use OF the word adequate in the law
would put Il squarely mp to the Inter
state Commerce Commission to consid-
or these facts In deciding rate cases.
pefore the railroads complete their
appearance before the Senate Commit
tee they expect at least party 70 de-
velop the sentiment Of other business
enterprises OF the country, the ship
ping and travelling public and the rail.
road bondholders, on the question OF
what shall be done. Already THIS sen
tlment is being developed and every
hing nossible will be done TO give The
committee the views OF all kinds OF
business interests.
CLOTHING PRICES DROPPING.
r.,,rTArn nae % George I,NttO0. OF