The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1918-01-21
M'ADOO NOT FOR
R. R. OWNERSHIP
Continued From Page One


limit government, control 10 any
definite period.
II government control II limited to
tn. duration Of the war or for a fired
time aftsrward. McAdoo warned the
committee. financial chao. In likely
when the roads arc turned back.
Iiasty and iii-consider~d legislation
now. he said. would be ruinous to
holders OF railroad securities when
the government reiinauirhef control
OF tho lines.
For this reason McAdoo urged that
tho committee report the pending
railroad btu as written with the pro-
vision that government control shall
continue until congress shall other.
wise order.
McAdoo's statement tina; he does
not believe In government ownership
was In answer to a question by
Watson. OF Indiana. an outspokcn
foe Of government ownership.
He's for Greater Control
mir. Secretary. do you believe I'm
government ownership" asked Wat.
son.
Il do not" replied McAdoo. But
believe II will be impossible TO re
turn to competitive conditions an
they were before the government
stepped in. There will have TO he
a greater measure OF control and
regulation henceforth than we have
had in the past.
And II you limit the period Of
government control. then you may
make impossible now legislation to
meet situations that may arise.
We must use our best foresight.
To throw the roads back TO private
control. with competition destroyed.
and with one limo carrying business
at the expense OF another. would be
grave mistake"
DO you think the power TO fix
rates should be taken from the inter.
state commerce commission and the
various state commissioner" asked
Kellogg.
when the president is operating
the roads. think II extremely un.
wise to hamper him In rate fixing
matters 20 meet any emergency.
declared McAdoo.
McAdoo cited his recent action IN
New York In ordering coal trains
moved thru the Pennsylvania tun.
mol ns an instance where ~ was
necessary arbitrarily 10 set aside 10.
cal control.
One Man Policy
Freight movement thru the tun.
mel Is restricted under the public
service commission. he said.
III ! had to file an application 10
move this freight and wait decision
of the commission. Long Island PEG.
pie would have frozen to death" he
said.
THAT means. then" said Kellogg.
that the rate fixing during and un.
I'll congress acts. would be up 10
one mani"
lie has the power 10 do 30. lie
may not use IT," said MoAdoo. Tie
has n great many powers he doesn't
exercise.
II haven't heard OF any he hasn't
exercised" sald Kellogg.
MCAuOO WaA aSked now long, IN
his opinion. II would be necessary
for the government to retain con.
troll
THAT all depends on the length of
the war" he replied. III II lasts six
months or n year. the period requir.
ed TO llquidate the roads affairs and
turn them back will be comparative.
" short. But IL It lasts three TO five
years. the period of liquidation
would be longer. Nobody can tell"
The fact the government In guar.
antccing compensation, McAdoo
added, makes It unwise 20 leave 10
state commissions the right 10 de.
terminc to any degree what the
roads earn.
Argues for Three Year Basis
Arguing that the three.year com.
pensation basis is a fair and rea.
sonable one" McAdoo said;
I'm the fiscal year. ending June
80, 1917. the net railroad earnings