The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-01-21
M'ADO0 DOESN'T
WANT GOVT TO
KEEP RAILROADS
Director General Asserts I'll.
Opposes Govt Ownership.
Doesn't Say How Long After
War To Be Restored.
NEED OUTLAY OF BILLION NOW
Advocates Huge Fund To Es-
tablish Highest Efficiency.
Doesn't Want Powers Hampered
by I. C. C. Rate Rulings.


by 1. C. c. Rate Rulings.
washington, Jan. 21.-A billion dol
lars must be advanced to the railroads
for improvements before they will be
on an effective war basis Director
General McAdoo announced before the
senate interstate commerce commit
tee today. At the same time, McAdoo
came out definitely against govern
ment ownership of the roads.
McAdoo said his survey of the rail
situation has convinced him govern
ment funds must go into the roads to
help them expand.
The government probably will have
to put between $1,000, 900. 900 and ST.
500,00O,000 into the roads to bring
them to the highest state of efficiency
and keep them in that condition in or
der to meet the vital needs of the
war;" the director-general said.
Beware Hasty Legislation.
He forecast the continuation of
government control for some time
when he said congress should not linn
it government control to any definite
period. If government control is linn
tied to the duration of the war or for
fixed time afterwards. McAdoo
warned the committee, financial chaos
is likely when the roads are turned
back.
Hastv and iIl-considered legislation
now, he said, would be ruinous to
holders of railroad securities when the
government relinquishes control OF the
lines.
the committee report the pending rail-
road bill as written, with the provision
that government control shall con-
tinue until congress shall otherwise
order.
McAdoo's statement that he does
not believe in government ownership
was in answer to a question by Sem
ator Watson. Indiana. ran outspoken
foe of government ownership
Mr.. Secretary. do you believe in
ownership" asked Watson.
Denounces Govt Ownership.
u do not replied McAdoo. But
/ believe it will be impossible to re-
turn to competitive conditions as they
were before the government stepped
in.
There will have to be a greater
measure of government control and
regulation henceforth than we nave
had in the past.
''And if YOU now limit the period of
government, you may make impossible
new legislation to meet situations that
may arise.
eve must use our best foresight.
To throw the roads back to private
control with competition destroyed
and with one line carrying business
| at the expense of another would be
| a grave mistake.
| ..Do YOU think the power to fix rates
| should be taken from the interstate
! commerce commission and the vari-
Gus state commissioner" asked Sena-
| tor Kellogg.
when the president is operating
| the railroads, l think it extremely un-
| wise to hamper him in rate flMng
matters to meet any emergency" de-
| clared McAdoo.
| Cites Use of N. Y. Tunnels.
| McAdoo cited his recent action in
| New York in ordering coal trains
| moved thru the Pennsylvania tunnel
as an instance where it was necessary
| arbitrarily to set aside local control.
| Freight movement thru the tunnel
! is very restricted under the public
service commission" he said. 'If l
had to file an application to move this
freight and wait decision of the com
mission, Long Island people would
have frozen to death" he said.
| THAT means, them said Senator
Kellogg, that the rate fixing during
the war and until congress acts would
be up to one MANI?
HE has the power to do so. He
may use it, said McAdoo. He has
great many powers he doesn't exer-
cise,''
Il haven't heard of any he hasn't
exercised said Kellogg.
| McAdoo was asked how long in his
opinion it would be necessary for the
| government to retain control of the
lines.
| How Long Depends on War.
That all depends on the length of
| the war" replied McAdoo. '1f it lasts
six months or a year, the period re-
| quired to liQuidate the roads affa1rs
and turn them back will be compara-
lively short But if it lasts three to
five years. the period of liquidation
| naturally will be longer. Nobody can
tell definitely; that's why congress
should not put hard and fast limit
| on the period of government control
Approves Three Year Average.
The fact that the government is
guaranteeing compensation, McAdoo
added makes it unwise to leave the
state commissions particularly the
right to determine to any degree what
the roads earn.
Arguing that the three-year COM
pensation basis is a fair and reason
able one" McAdoo said:
I'm the fiscal year ending June 80
1917, the net railroad earnings were
S1,035, 100000. The average for the
past three years is about 1895, 900, 600
| IF the government with s100, ,000,-
900 advantage hasn't made fair deal
1 am frank to say do not know what
fair dealing is.
You gentlemen must bear in mind
that what you propose you cannot i'm
pose. Your proposal is merely a sug-
gested basis of reaching a compensa-
ton agreement
Ask About Late l-ueI Order
1.-The government must not do de-