The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-01-16
SMALL ROADS
FEAR RUIN BY
M'ADOOSTAND
Many Excluded From L. s.
Control by His Interpreta.
tiOn of Proclamation.
NOTICES NOT EFFECTIVE
Government Unable to Endure
Financial Strain, House
Committee Is -old.
NOTICES NOT EFFECTIVE
Special Despdfch to The SrN.

Spectof Despdfch to THE Sun
WARRINGTON, Jan. l5.-The most as
tonishing development In the railroad sit
uation since control was assumed by the
Government was brought out before the
House Interstate Commerce Committee
to-day. when Judge John b. Paine. ap-
pearing as the personal representative Of
Director General McAdoo. asserted that
a largo number Of the smaller railroads
OF the country were not actually in
cluded under Government operation de-
spite the fact that they had received
notice that they were included. Bird NJ.
Robinson, In general charge Of interests
Of the smaller roads. told the committee
that this construction Of the taking over
OF the railroads meant assassination OF
the roads left out OF the system
Many representatives Of small roads
appeared before the committee and ex-
planned the particular problems with
which each has been struggling, and
without exception each one asserted that
he had received notice that his road had
been taken over.
Judge Faine said this notice. signed
by Director General McAdoo, had been
sent out. but declared in effect that II
did not mean what II said.
Givca McAdoo's View.
Members OF the committee bonrbarded
Judge Faine with questions. as he was
regarded as representing completely tho
view OF Mr. McAdoo. Finally Judge
Paine said fatty: "Mr. McAdoo does
not think that the proclamation by the
President or the notices to the railroad
executives constitute taking over al
OF the roads of the country. lie does
not think that the railroads not neces-
sary 70 the country for war purposes
should be taken"
After more close questioning. part!cu'
larly by Representative Winslow. Judge
Paine admitted that the money In
volved would put upon the Government
too great burden.
IT was the idea OF Judge Paine tina
the railroads after receiving definite
notice that they have been taken ove'
by the Government for operation durins
the war should then inquire II they were
actually taken over.
"If the orders Of the Director Gen
eral do not carry fnai authority. VIII!
are the railroad heads to take any or
ders at all from Mr.. McAdoo?" de
manded Mr.. Winslow. He has ISSUED
orders and now he says ne had hi,
fingers crossed when ne did II"
, Several representatives OF small lines
which now do not know whether they
! are under Government operation or not
! cited the fact that II has been decided
| that the compensation OF all employees
Is under direction Of the Director Gen
eral and that II any road Is excluded
! from the Government operation system
) II will have to meet whatever wages tn
Government deems At to pay to th
roads which are under the direction o
Mr.. McAdoo.
Roads sale stopped.
It was brought out that not only wer
the executives OF many OF the small line
! Informed by Mr.. McAdoo's first genera
order that they had been taken over b.
the Government for operation during tn
war emergency but that they had bee'
forbidden to continue solicitation 10
business. One case was cited where
railroad was about to be torn u
and the property sold for scra
when a specific order from Mr.. McAdo
stopped It.
Representatives OF the smaller line
testified also that the general practice Il
the past has been for the larger line
to furnish almost all of the cars used 4
foreign shipments and that many Of tn
small roads which may he exclude
from the Government system are prac
t,cally without rolling stock necessar
for carrying on business. They hav
been constructed largely on the plan O
being utilized in connection with tn
larger lines It was testified that thos
left out Of the general system would b
absolutely ruined as result OF the re'
construction which the Director Gen
eral. through Judge Paine. has put upo
the Presidents proclamation taking owe
the roads.
Mr.. Robinson asserted that the cor
struction put on the proclamation b
Mr.. McAdoo was wrong and that IN
proclamation took over all OF the stear
roads of the country. leaving the optic
with the Director General OF taking tn
interurban electric lines or not.