The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-01-19

provide additional equipments and
! improvements. In considering these
! improvements he said the fund was
/ small.
McAdoo said that he did not con-
| template using any of this fund to
meet maturing railroad obligations
during government control.
Il hope that the roads under gov
| eminent direction which will re-
habilitate their credit, will be able
to take up their own securities, he
added.
He added that he did not think
the revolving fund could be legally
used for meeting maturing securities.
Maturing securities, he said, IN
1918 would amount to 22,OOO,O 900;
in 1919, s22s,O00,000. and in 1920 TO
S215, 100000.
McAdoo said he considered the
proposed compensation basis as
fair one.
What about high salaried rail
road executives and other officials!
asked Senator Cummings.
well, the roads have been charg-
ing these sums to operating ex-
penses," McAdoo said Il am not
going to employ anyone, though, who
operation of the roads"
He asserted that the government
should preserve the railroad organi-
zation as completely as possible.
Senator Cumndins asked McAdoo TO
furnish later complete list of all
executives and other high salaried
officers.
Are railroad employees government
employees or not?" asked Senator
Gore.
MY view of it thus far is that the
men are employees of the roads.
which are under government direc-
tion," said the director general
McAdoo, howver, said that this in
yolyed question he was not pre-
pared now to decide.
The right of the various states to
impose reasonable taxes upon rail
roads was not abridged by govern
ment control, the director general
said.
In-as-much, however, as the states
could, by so doing take money from
the federal treasury, he thought
there ought to be some legislation
on the subject.
McAdoo, asked to enumerate the
important steps he has taken since
assuming control of the roads, named
two as the most important:
Il took seven hundred locomotives
ordered for various roads and as fast
as they are completed, l am sending
them to lines needing motive power
worst" said McAdoo. Il also have
directed that roads already heavily
congested shall get no more cars
until the congestion has been re-
lieved."
McAdoo virtually gave his support
to Senator Nelson's bill to compel
unloading of cars within seven days
when he said the use of cars as
warehouses had seriously compli-
Gated the situation.
He told how he had increased de-
murrage charges to reduce the prac-
tice OF letting loaded cars stand in
terminals, but admitted this has not
completely remedied the trouble.
please tell what in your opinion,
were the reasons why government
Senator Robinson.
McAdoo replied that aside from
obvious need for centralized control
to combine the facilities Of the
roads, governmental control was
needed to stabilize the railroads
finances.
with $1,000, 100000 of railroad
securities gradually shrinking in
value serious menace to the coun-
try's credit had arisen" he said.
Government control was necessary
to remove that danger"
.'As fast as our Investigations now
in progress disclose that railroads
are not essential to the general
transportation schemes" said Nc
Adoo, they are being released from
government control.
Approximately eight hundred OF
these small roads. representing ST.
600 900 900 investment are in the
twilight zone" of control, the com
mittee was told. McAdoo insisted
that inasmuch as the direction of
these roads had not yet been dis
turbed by government control, the
government was not liable for any
compensation to those roads turned
back.
Constructively, at least, he said,
every road had been taken over
under the presidents proclamation.
II don't think the government
should draft a needless railroad bill
that will burden the treasury" said
McAdoo. The treasury has all it
can carry Incidental loss due to
the wax will have TO be borne.
'sThe short line railway will be
given a fair chance to exist and will
get all the help we can give.
at seems to me the short line
railroads are hollering before they
are hurt"
McAdoo said he considers one Of
his first tasks is to determine by in
yestigation just what railroads are to
be taken over by the government and
notify them. He clearly indicated
the policy will be to compensate only
those roads which definitely are TAX
en- over by the government.
War necessity and the public in
terest should dictate what lines we
should take" McAdoo said.
McAdoo assured Senator Under
wood that "Daby roads" will be given
the same opportunity to get cars and