South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-01-24
RUSH RAIL BILL
URGES NJ 'AOOO
Tells Committee u. S. Can't
Do Much Until Money
is Raised.
International News Service


lam Gibbs McAdoo stepped out of
his role as director general Of
American railroads this afternoon to
warn the house interstate and for
eign commerce committee as secre-
tary of the treasury that prompt ac-
ton on the administration railroad
bill must be taken if the vast inan-
cial operations Of the government
are not 10 be interfered with.
Whatever action YOU take. take
ii promptly" Mr. McAdOO appeal
ed. The government has great fl
nancial operations that must be car
ried forward to meet war needs.
The raising of $lO.OOO,000 600 be
fore June so, already is authorized.
We cannot begin upon these under
takings until the question now be-
fore you is settled.
Must settle Status.
The S11. 000.000.000 in railway
bonds have a very large part in the
credit system of the country he
continued. so long as the status of
these bonds is uncertain. so long as
holders Of these securities do not
know what dividends they will re-
ceive. these people are not going to
invest in government bonds.
1T is of the utmost importance
that this legislation be whipped in
TO shape and passed just as eXpedi-
tiously as possible 70 remove this
barrier that stands in the way Of the
governments great financial prob
lem"
Chairman Sims told the secretary
OF the treasury that the committee
would remain in continuous session
until the bill is reported TO the
house as the result of Sec'y Nc
Adoo's intimation was that the third
Liberty loan would be hoated just
as soon as the status of railroad
securities is determined.
Gives Another Warning.
Mr.. McAdoo as director general
Of railroads gave the committee an
other warning. 1t was that the fear
of government ownership must not
lead this congress 10 hamper the
government by setting a time for
the termination of the federal con-
troll of the railroads.
The fear of government control
Of shipping that led 10 a filibuster
when the shipping bill was under
considt alton in 1914, is responsible
for the lack of ships today" Sec'y
McAdoo declared. But for that fear
we would not have been delayed
for two years in starting a shipping
program for the American people.
1--WE cannot take counsel of fear.
In time of war we must take coun-
sci of anything but fear"
Can't Forestall Decision.
"By inserting a provision in this
bill that the railroads must be re-
stored to private ownership within
one year after the termination o.
the war, this congress cannot fore
stall discussion of public owner
ship" Director McAdoo insisted.
Indeed l think it altogether likely
that if the railroads are well man
aged and show a profit under gov
eminent control and the question of
whether the government shall per
manently hold the railroads must
be settled within a year. the result
would be that the American people
would demand that the railroads be
not returned. Thus there would be
just the reverse effect Of what the
railroad executives are urging you
TO guard them against by setting a
time limit in this bill
Will Not Resume Status.
THE railroads will never return
to their former status" reiterated
Director McAdOo. when they are
returned. if they are returned, they
will be operated under a govern
mental control far more reaching
than il was i'm the Fast. If the gov
eminent is hurried in returning the
railroads to private control after the
war. the experience gained in the
operation of the roads and which
should be utilized in perfecting SUI
pervisory legislation, will be useless.
The inevitable result. if an accept
able program Is not perfected, will
be that government ownership will
be the only alternative 10 chaos.
Director Gen. McAdOo generally
insisted that the rate making power
must be vested i'm the president
rather than i'm the interstate COM
merce commission.
The director general at this hear
ing had ar opportunity TO deny re-
ports that railroad workers on GER
tain systems were laying down on
/ the Job because they are now gov
aypf,,anf aYnDlONaC