Daily capital journal. (Salem, Oregon) 1903-1919, 1918-01-19
Says Progress Has So Far
Been Slow Due Mainly to
Weather Conditions
CONTROL BY NATION
HELD NECESSARY
Economy VIII Be Practiced
and High Salaries Cut As
Much As Possible

Washington, Jan. 19.-Director Gem
ieral of Railroads McAdoo today admit
tied before the senate interstate com
lmerce committee that he has been un-
able thus far to do much towards
STRENGTHENING out the freight tangle
on the country s rail lines
He blamed the slow progress on the
unusual weather, which affected even
lsouthern railroads mot usually trou-
bled by cold weather. Not only did sue
eessive blizzards clog the rail lines
but they froze harbors, making it i'm
possible for ships to approach docks
for leading and thus adding to con-
gestion in terminals, McAdoo said. He
gave the first authoritative announce
ment concerning the government IS pol
Iicy with respect to the country s
baby roads, when he said they win
not be taken over unless it is neces-
sary. The losses they will suffer, he
said, they must bear as part Of the
general sacrifice for the sake of vic
tory.
Somebody has to make sacrifices
besides the man who lays down his
life in battle said McAdoo. eve
WuHJ all lue IOduS W HuNt SQudT0
deal and wen help all we can, but we
are not going to add to the treasury's
burdens merely to keep people from
losing money
Why Control Necessary
McAdoo also declared government
control of railroads was necessary to
prevent a financial disintegration =
which threatened the country because
Gf the shrinkage of railroad securi
ties.
This collapse, he said, would serious
ly have undermined the nation 5
{" hopes of victory in the war;
McAdoo said he did not know that
priority orders were responsible for
the railroad congestion, but he abolish
cd them all when he took over tho
roads.
~ wanted to start with clean
slate" he said.
Cause of Trouble
He declared that no one thing was
responsible for the railroad situation.
Railroads spent less for betterments
and improvements in the past three
years than they did in the previous
three years, he said. The tremendous
increase of industrial and domestic
demands in face of the condition was
one df the big factors in the situation
he declared
MeAdoo promised marked economies
in the operation of the railroads. lie
made this statement in explaining the
purpose of the $500, 100000 revolving
fund to be created by the railroad
BILL This fund, he said, was to be used
in making up deficiencies in meeting
to provide additional equip
ment and improvements.
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 dur
ing government control.
~ hope that the roads under gov
1rnment direction, which will rehabil-
tate their credit, viii be able to take
lp their own securities, he added.
lie said that he did not think the re-
7olving fund could be legally used for
Meeting maturing securities.
Proposed Compensation
Maturing securities, he said, in
1918, would amount to $222,000,000,
n 1919, 5000, 600, and in 1920. to
s215,0OO, 900
McAdoo said he considered the pro-
posed compensation basis a fair one.
''What about high salaried railroad
and other offieialsq'' ask
d Senator Cummins.
Will Practice Economy
"'Well, the roads have been eharg-
ng these sums to operation expens-
S, +" said McAdoo. ~ am not going
o employ anyone, though, who is not
bsolutely essential to efficient oper-
tion of the roads. -
He asserted that the governpent
hould preserve the railroad organiza-
ion as completely as possible.
Senator Cummins asked McAdoo to
urnish later a complete list Of all ex-
cutives and their high salaried Off
ers.
Are railroad employees government
mployes or not2n asked Senator Gore
" Ny view of it thus far is that the
len are employees Cd. the roads, which
re under government direction" he
aid
McAdoo, however, said that these
involved a question he was not prepar-
d now to decide.
State Taxation
The right of the various states to
impose reasonable taxes upon railroads