Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-12-12
WOULD CONTINUE
RAIL WAY CONTRO!.
FOR FIVE YEARS
Director General McAdoo
recommends That Con-
gress Extend Period.
THINKS 1T WILL RESULT
IN PERMANENT SOLUTION
Says People Are Entitled to
Test Secure Adjustment
of Question.
PRESIDENT TAvORs PROPOSAL
temporary Control Under Existing
Law Is Increasingly Brsct
With Embarrassmcnts.
RESIDENT rAvoRs PROPOSAL
temporary Control Under Existing
Law Is Increasingly Brsct
With Embarrass
Iby Assocla,cIPros


control Of railroads for five ycars
"ht'i January /. 1924. was recon
"ended TO Congress by Director Gen
cral McAdoo. Advantages of this. Mr..
hcAdoo said. are that il would cake
me railroad lIc>;tsr out of po.. lies
tW thc present, give time for carry
ms Guy an extensive program OF i'm
III lair test II unified control 10
indicate the .perna.,':s at solution Of the
railroad problem
rhc President has given me per-
mission TO sa that This conclusion
accor1s with his own view or the mat
'er.n !,,, MI Nc Adogsconcluded.
smith, OF Sou,h#Cnrolina. and Rep
resentat!ve SINS. chairman. Respective
~. OF the StN tcEnHd House Interstate
Commerce Committees. MIR McAdoo
explained tina, To continue government;
operation for twcnty-one months after
formal declaration of peace under
present conditions would mean disrup-
lion OF morale among employees and
officers. and could not enable the gov
crnmeht 10 go ahead with improve
mcnis and purchase Of equipment. An
otner alternative, the prompt return OF
the railroads to private control with
out legislation TO permit elimination OF
.he otn "astciui competition would he
'hurtiul alike TO the public interest
and 10 the railroads themselves" he
SAID and the difficulty OF obtaining
immediate legislation providing a per
WOULD EXTEND PERIOD
TO JANUARY {. 1924
There Is one. and 10 my mind. only
one practicable and wise alternatives
Mr. McAdoo continued, and that is 10
extend the period OF Federal control
from the one year and nine months
provided by the present law TO FIVE
years. or until the first day of January.
lSzi. THIS extension would take the
railroad question out OF politics for
a reasonable period i, would give
composure TO railroad officers and en-
pioyees. IL would admit Of the prep-
aration and carryin. out Of com
prehensive program Of improvements
of the railroads and their terminal
, facilities. which would immensely in
crease the efficiency OF the transpor-
ta,ion machine. II would put back OF
the railroads the credit of the United
States during the iive-ycar period, 50
that the financing OF these improve
ments could he successfully carried out.
II would offer the necessary oDpor-
tunty. under proper conditions, to
test the value of unified control. and
The experience thus gained would OF
itself indicate the permanent solution
Of the railroad problem.
Tie American people have a right
To this test They should not be de-
MED it, !, is TO their interest that
is the only practicable and reasonable
method of determining the right solu-
tion of this grave economic porblcm.
NOT INTsREsTED IN PROVING
Il am not now and have not hcen
20: the past year Interested in prov
Ing oi disproving the theory Of gov.
ernment ownsrship or any other Kind
OF theory. The railroads have been
operated for the past year with the
purpose of serving efficiently the par
amount needs OF, the war and at the
sam. time furnishing the best possible
service TO the pubic. whether such OPP
Grafton tended TO prove or d!sprove
any theory OF railroad control. no mat
fAr he "a 1al
no opinion myself AS 20 what is the
besr disposition OF the railroad prob
hcent to prove conclusively the right
solution OF the problem. I believe that
a Gve-year test will give the Ameri-
can people the right answer. IN
ounce of experience is worth ton of
theory.
There are those who may say that
test will mean government ownership.
Personally. J. do not believe it. But
whether such a test would indicate
that the ultimate solution shall be gov
eminent ownership, or modified form
Of private ownership under effective
Federal regulations should not. cause
us TO hesitate or refuse TO act"
If Congress does not extend the time
for government control. said MIR. Nc
Adoo, the railroads should be returned
10 private management at the earliest
possible moment"
PRACTICAL DIFFICULTIES
OF PRESENT SITUATION
Practical difficulties Of continuing
government operation under existing
authority. he pointed out, are the grow
ing conflicts of authority between
state and Federal ed o5 5urisdie,ons nds nSd mad
fund for financing Improvements. in
ability to force railroads to pay for
cars and locomotives without ltiga-
ton, and to require terminal improve
mentS.
President Wilson in his recent address
10 Congress said he was unable TO de-
eide what should be done with the rail
roads. and asked Congress to take up
the question for discussion immedi-
ately., lie declared that unless action
was forthcoming he would be forced
TO turn back the roads to private man
agemcnt.
Acting under this plan the railroad
administration has been preparing to
rehnGuishh aH ;he conaroi onn or ne raiir9ads and
the administration would wait two or
three months before actually starting
the relinquishment proceedings. to give
Congress chance to act. Recent de-
velopments have shown the difficulty
of determining final policy at this
time. however, according to railroad
administration officials.
Most railroad owners and managers
arc said to have urged that the roads
ho relinquished, but under some sort OF
remedial legislation giving them power
TO pool their resources and eiirninate
wasteful competitions. There have
been. no important advocates of res
Ing to ofieIals. On the other hand. the
friends OF government ownership have
Just begun TO renew agitation for re-
tention by the government OF perma-
nent control. and later purchase OF the
roads property.
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