The Washington herald., 1918-12-20
M'ADOO AGREES
WITH ]. ]. HILL
Holland Says Railroad
Situation Was Known
Many Years Ago.

One paragraph in the recent COM
munieation by Mr.. McAdoo as
Director General Of the railroads. has
caused some who are familiar with
railroad conditions as these have been
for hfteen or twenty years 10 refer
TO recommendation made in 1905 or
1906 by the late James J. Htu. At
that time the railroads were begin
ming TO feel seriously the need Of i'm
provements. expansions. and especial
ly terminals. Mr.. Hill was Of the
opinion. which he publicly and earn
estly expressed. that the railroads Of
the United States were in need Of st
least five hundred million $4,000
Oco dollars a year to be expended
upon Improvements. expansions. and
terminals for at least ten years.
The situation was already becoming
somewhat desperate. II had been
accurately forecast by A. ]. Cassatt.
president Of the Pennsylvania Rail-
road Company. Mr.. Cassatt had oh
served for some time that railroad
facilities. for the movement Of freight
were not equal TO the trafic which
was offered. especially in the Middle
West He made an exhaustive study
Of these conditions upon which he
justified a statement that unless con-
ditiOns were improved and the rail-
roads were able 70 obtain suficient
funds greatly to expand their trafic
facilities. then the time was not far
distant when there would come an
appalling congestion Of freight,
especially in the Middle West.
Mr.. Hin took Up the suggestion
which was made by Mr.. Cassstt and
went into some details. His own
study Of the relation Of transports-
ton OF the railroads 10 the vastly
increased traffic that was being of4
fered and would continue 10 be Of
fered on account OF the industrial
and agricultural growth Of the West
and the Far West. justified him in
saying that as much as $1,000. .OO0
a year. to be continued for ~ least
ten years, would be required IL the
railroads were to meet the trafic
that was being and would continue
to be offered in increased amounts
Five Billions Needed.
As much as SO00CrOOO0 was tho
estimate of Mr. Hill OF the amount
Of money that would be required n
the railroads were to keep pace with
industrial and agricultural growth
He spoke particularly OF terminals.
referring 20 them IS the keystone
OF efficient and SUFFICIENT railroad
traffic movement" Mr. Kills state
ment occasioned no more than pass
ing comment. Now. Nj McAdoo.
ten years after Mr.. Hills assertion
with respect to the needs OF the rail-
roads. has recognized this assertion
as true and as containing suggestions
which will compel the securing OF
five hundred millions fresh capital
But Mr.. McAdoo contemplates no
more than two billion. fve hundred
millions as the aggregate amount
which II is necessary TO secure within
the next five years.
Apparently nothing but the expert
ence Of the government and especially
that OF Mr.. McAdoo could have
caused general interest 10 be eN-,
pressed as 10 the needs Of the rail-
roads for new capital in order 20
make necessary improvements. or
course. il the government should be
compelled TO furnish this sum then
il will be unnecessary for the rail-
road companies to approach the
bankers and men OF capital for the
purpose OF securing this large amount
OF new capital. Railroad managers.
however. are confident. as are also
the bankers and men Of large capital
who are awaiting reasonable invest
ment. that IL the railroad companies
are permitted TO increase rates and
are allowed certain fna ncial facilities
such for instance as the right under
the law 20 re-estabIish pooling under
EovSrnment control then there win
be no difficulty in securing from pri-
vate sources the amount OF money
that is needed II the railroads are
to be in a position fairly well 10 meet
the increasing demand for traffic sc-
Commodations.
The Law Must be Changed.
In any event it is necessary that
there be certain changes in the law
and >eertain changes in the policy
which has characterized the Inter
state Commerce Commissions rela-
tion to the railroads OF the United
States and TO the traffic probIernl
For. it is said, had the policy Of that
commission been far different from
that which il has adopted. then the
railroad companies would have been
able 20 secure from bankers and men
of capital the necessary funds in order
to pay for improvements. and ade-
quately TO enlarge terminals.
In the early fall Of 1907 a congestion
Of traffic. especially that which was
offered by the shippers OF wheat an
corn from the West to the ArIant.-
ports. took place at Buffalo. Traffic
in enormous amounts awaited there
transportation. II could not bc moved
excepting very slowly. simply because
the railroads were not in possession
OF adequate equipment. The late
CONTINUED on PAGE ELEVEN.