New-York tribune., 1918-12-20
Reduction Predicted Pro-
vided Congress Adopts
His Five-Yevr Programme
The Senate to Investigate
Railroad I'll Il 4 Believes
Long Time Is Necessary to
Solve Railroad Problems
By Garter Field
Nepp Yo1h Tribune
IYnshinntOu Bureau

WASHINGTON, Dec 19.-A reduc-
ton of railroad rates, both freight and
passenger, within the next calendar
year, was promised by Director General
of Railroads McAdoo to- day-IF'-thc
five-year programme he has just recon-
mcnded is adopted by Congress-
Mr.. McAGoo. acknowledged the very
widespread opposition apparent among
all factions in Congress to his hve-year
"tcst" Of government operation OF raIi-
roads, seemed most optimistic IN talk
with newspaper men to-day over the
prospects of its adoption. lie is abso-
lutcly unmoved by the torrent OF at,
tac<s made on his plan on Capitol mn
and still firmly believes it the only
wise policy to pursue.
By his move to-day, incidentally,
Mr.. McAdoo struck vigorously at the
foundations of the most strenuous
single influence which is opposing his
plan-thc shippers The shippers be
lieve that if they can get the railroads
away from governmental operation and
back into the hands of their former
owners, it will be a simple matter to
force a reduction in freight rates
They have, as a result, been bringing
pressure to bear on Congress for
many months to force as speedy re-,
turn of the railroads to private own
ershp as possible.
Shippers After Lower Rates
Senators in discussing the situation
Just. after Mr.. McAdoo made his five
year recommendation said that the peo-
pie who might be supposed to be most
vitality Interested stock and bond
holders--were far from unanimous,
many of them fearing return to old
conditions, and all of them wanting to
examine carefully any plan for the re-
turn of the roads before urging that
action. But on the part of the ship
pers there was no division. They
wanted cheaper rates, and made this
desire very clear to their representa-
tlves in Congress.
Letters reaching here from bankers
and investors generally in the last few
days have indicated that the principal
immediate anxiety is not as to whether
the five-year plan is to be adopted or
whether the roads are to be returned,
but as to who will be appointed di-
rector general of railroads.
They want to be certain that it is
no lame duck Congressman, who may
have no particular business or tech
nical ability, but who would see gorg-
eous patronage opportunities in the
operation of these railroads. Nor do
they want man with grievances
which might be very injurious to GER
tain railroads.
Congress Fighting Plan
MIR. McAdoo is fully cognizant of
this phase of the situation and indi-
Gated to-day that the new director
general of railroads would be an
nounccd very shortly. This announce
ment, he believes, VII be another big
step toward undermining the opposi-
tion to this plan. So far at the Capitol
there are no evidences of weakening
in the fight against the fve-year plan.
Senators declare that it would be ut
terly impossible to get it through at
this session of Congress, even if a
majority of either House could be
mustered for it, which they very much
doubt. They insist that the only pos
sible way in which the railroad situa-
tion can be worked out is for the
President to call a special session of
the new Congress, both Houses of
which will be controlled by the Re
pubicans, and allow legislation to be
worked out according to the usual
Congressional procedure.
Mr.. McAdoo was not definite as to
passenger rates would occur, but
pointed out that under the settling
down of the system to fiveyear test.
with everybody pulling together, the
present governmental system would
have its first really fair test. He
pointed out that while the railroads
were presumed to have cost the govern
ment some $200,000000 in the last
year, it must be remembered that the
practically year, while the return
from the increases in freight and pas
senger rates had been in effect only
about half +hat +ime. II was also en-
phaszed that the cost of relieving last
winters congestion had been very high,
and this, of course, was charged in the
cost Of operating the roads.
McAdoo Predicts Reduction
The director general therefore, be-
lleves that the present financial prob
lem of government operation is by way
of being solved, and the increasing net
earnings will, before another year has
passed, Justify reduction in the
freight and passenger rates. He point
ed in this connection to the fact that
he had already taken off the half a cent
mile extra charge on Pullman tickets.
Mr.. McAdoo this afternoon reiterated
his former statement that he believed
that a tive-year test under government
control would result in the adoption of
a policy of private operation under
close government supervision. He said
that he believed government ownership
would be made almost certain by turn
/ ing back the railroads now and that
their financial difficulties and the CON
sequcnt effect upon the public would
make government ownership quick and
certain. He said that it was his con-
Niction that if the tive-year test was
decided upon favorably within twelve
months material reductions could be
made in both freight and passenger
rates, while at the same time the wages
now paid need not be disturbed.
Senate to Make Inquiry
At a meeting of the Senate Commit
tee on Interstate Commerce, Chairman
Smith announced that an inquiry into
every phase of the railroad situation
would be conducted, the hearing to be-
GIN Thursday, january =
in making the announcement, Son
ator Smith stated that in the order
named, representatives would be heard
from the United States Railroad Ad-
mlnistration, Mr.. McAdoo, representa-
tives OF Interstate Commerce Com
mission, the railroads, state railroad
| commissions, shippers, chambers of
commerce and other interested organi
cations. Senator Smith made it plain
that it was desired to have one re-
SpOnS bic repre- sentative desipnetad NV