New-York tribune., 1918-08-23
McAdoo Classes All
Who Resell Liberty
Bonds as Cutters
Secretary Declares Such
Action Impairs the Credit
Of the United States
Discusses Loan Issue
Declares Solution of Railway
Contract Problems
Is at Hand
Discusses Loan Issue

York yesterday in his capacity as Di-
rector General Of the railroads. Mr..
McAdoo spent the day familiarizing
himself with the terminal facilities in
Long Island and inspected the Sunny
side yards, the Bush terminals and the
new army depot at Bay Ridge.
In the evening Mr.. McAdoo saw re-
porters and discoursed on all matters
of public interest that come under his
numerous and ever growing jurisdic-
tiona.
Mr.. McAdoo was asked what he
thought of the request of prominent
New York banker for a ruling by the
Federal Reserve Board as to the essen
tlal or non-essential character of loans
tor Stock Exchange purposes. He re-
piled that he had not yet been Off
cially informed of such an inquiry and
therefore was disinclined to make any
comment. But later, in discussing
credit, he pointed out:
The Importance of Credit
"The credit of the United States is
as vital to the people of the United
States as health is to the individual
and virtue is to woman. Credit is
as necessary to the state as the heart
is to the body. If the credit of the
country would be injured the effects
would be no less disastrous than the
loss of big military battle"
This led the Secretary of the Treas
ury to condemn the sale of Liberty
bonds as highly unpatriotic and as
blow to the credit of the government.
every person." he said, "who sells
government bond is deliberately.
thoughtlessly or unpatriotcally in
juring the credit of the United States
and is adding to the difficulty Of the
United States in fighting the war to
just that extent. l look upon people
or institutions who sell their Liberty
bonds as cutters and unpatriotic citi-
zens." He explained that bondholders
ought to take advantage of the con-
version privilege, and said that SO
doing in no way impaired the govern
ment'S credit
MIR. McAdoo said he was not yet pre-
pared to tx the amount of the fourth
Liberty Loan, but indicated that an
o1lclal announcement would be forth
coming as soon as the broad outline
CT the pending revenue bill is clearly
established.
In response to a question as to the
solution OF the railroad contract prob
lem, the Director General said that the
matter would be settled in tie near
future, and declared that the delay
was due entirely to the railroad in
terests and not to the government,
The chief interest of the govern
ment," he said, "is that the railroads
get a fair and just contract No mat
ter what the security holders and their
associates do, they will get justice"
Nr. McAdoo pointed out further that
the extensive propaganda and numer-
GUS objections of certain railroad in
terests would not prejudice the govern
ment against them.
Control of Utilities Unlikely
Another inquirer asked Mr.. McAdoo
IL there was any chance of the Federal
governments taking over all the street
railways to save them from the bank
ruptcy with which public utility men
say they are threatened. The Cabinet
officer declared that nothing in this di-
rection could be done, in his opinion,
without a special act of Congress. and
his additional remarks on this subject
were interpreted to mean that respon-
sibe officials of the Federal govern
ment were not seriously considering
this contingency.
Despite concerted efforts to make
Mr.. McAdoo parcel out opinions on
every subject that now puzzles people,
he persstently reverted to the railroad
situation, as he. came to the city as
the chief of the American railway sys-
TEN.
We are anxious for the public to
understand" Mr.. McAdoo asseverated.
that we are not trying to needlessly
Inconvenience it on the railroads. Pas
ssenger service is being curtailed only
because it is war necessity to do so
and Tor no other reason. The purpose
OF the railroad administration is to
give sufficient and efficient passenger
service as far as it is consistent with
the paramount needs of this war.
Civilian travel must yield to military
needs. We are terribly short of pas
senger coaches, parties larly in the
East, and ! may say especially on Long
Island. The pressure on the roads is
very great, and it is difficult to take
care OF the troop movements and the
large civilian travel. We are now car
rying 100000 soldiers month"; back
and forth from cantonments to their
homes, to ether camps and to points of
embarkation.
Apart from the movement of troops,
the supreme consideration is the move
ment of essential freight. Every un-
necessary degree of passenger travel OBJ
structs the movement of necessary
freight and uses unnecessarily fuel and
labor and other important things that
we must conserve.
Service Not SO Bad
~ am satisfied that the passenger
service is not as bad as some would
have us believe. 1t may be said that
railroad men-and many of the most
expert railroad men in the country
are still running the roads | am look
ing for brains. | don't care what babel
there is on them, political or other
wise, as long rs they have the brains
and are loyal to the govrnment and are
devoted unseltishlv to the srvicc Of the
country, hghting in their way inst as
hard as the soldiers are in theirs. Tho
supreme test is to deliver the goods"
AT this point some one asked whetbcr
government operation was likely TO ho.
come permanent. Mr.. McAdoo retortcd
Il cannot say. Who can saw? Rut
can say this. that | am not roinr ,o
allow myself to be swerved in tho
least by the consideration of whether
the things we do will facilitntc or
oiock government control after the
war, war; ! am not concerned with that
nat decision will be made Lv tko