Bisbee daily review., 1918-01-09
M 'ADOO ASKS COOPERATION FROM EVERY. RAIL WORKER.
Director General Appeals for United Effort Proposed Bill is Explained in House By Comnnissioner.
(Bv Review I eased Wirsl

lBy Review I eased Virsl
 WASHINGTON, Jan & - Director General McAdco today addressed an appeal to railroad officers and em- ployes to do their utmost 10 maintain efficient railroad service as a patriotic duty. saying every officer and em- ploye is just as important factor in winning the war as the men in uni form. who are fighting in the trenches"
 He promised to consider labor prob lens justly and fairly and at the earliest possible moment" The names of four members of the board to in -vestigste the brOtherhOOds' request for more pay probably will be an nOunced tomorrow
 The railroad problem was the sub ject of hearings before the interstate commerce committees of both the senate and house. Interstate Com merce Commissioner Anderson explain ed the puraose and effect of the pend ing administration bill to the house committee. while Julius Kruttschnitt- chairman of the board of the Southern Pacific. continued his testimony be- fore the senate committee on the diff faculties of railroads under private management
 Finances Considered
 Together with the labor phase of government operation. the railroad administration today considered finan- ciaI problems with which the govern ment will be forced to deal shortly From scores Of roads came reports on
 -~ 4nn to be raised thn year by issue of SC curities.
 Special consideration was given to- day to the financial straits of the Denver and Rio Grande railroad, which is threatened with receivership for failure to pay interest on Outstand- ing bonds After a conference be tween John Barton Payne, counsel for the railroad administration, repTesen- tatives of the road and of the Equit- able Trust company, which has Ob- tained al judgment of S2S.0o0,oO0 against the road. an agreement was reached by which the receiverShip will not be necessary immediately, and sufficient working funds will be lent the road to enable it to meet its pay rolls and continue operation Eventu- ally a receiver may have to be ap- pointed. it was said
 Anderson Before Committee.
 Commissioner Anderson. who fram- ed ths. administration railroad Dill. now before the interstate commerce committees Of both houses. on the stand today, explained that it is not intended that there shall be any in reference with state taxation of rail road property by government opera ticn- The government compensation to all roads on the basis of the stand ard return proposed. he said. would be S935. 900 GO0 a year. the average net railway operating income for the three years ending last June 30th. This compensation basis is permissive. not mandatory. and any railroad may enter suit for a higher rate if 1t chooses.
 MT Kruttsehnitt praised the work of the railroad war board. now dis solved. in eliminating much cOmpeti- tion and pooling railroad facilities to a great extent under private control He sid the results and the necessity of government control showed en- phatically that antitrust and anti pooling laws will have to be repeal ed
 Kruttschnit Tsstifies-
 Senator Cummins asked MT. Kutt- schnitt about the adviSability of has ing the railroads compensation on the market value of the stocks. which opened a lengthy discussion Of the value of securities Mr. Kruttschnitt said the value of the stock of the Southern Pacific had fallen , points in the last 10 years and in that period the company put S400000.00O into the property. showing that fhe market quotations have little or nothing to do with the intrinsic value of the property
 Grain men of the country. MT Kruttschnitt said. were the slowest tO comply with the war boards recon mendations providing for the heavier loading of cars It was only after