New Britain herald., 1918-12-19
GOVERNMENT NOT
giving UP CONTROL
Will Hold Railroads Until Con-
8reSS Acts, Anyway

Washington, Dec. 19.-The add
ministration will retain control of the
railroads at least during the present
session of congress. Director-Gen-
eral McAdoo has no intention OF
turning the roads back before con-
the question of extension of govern
ment CONTROL it is learned authort-
tatively.
This sets at rest rumorS that un-
less quicker sympathy with the five
year extension plan was received
from congress it was intended to re-
lease all the railroads early next
month.
Reports in New York financial cir
2les that members of house and sem
ate committees had been advised that
the roads would be turned back are
without foundation it was said. Di-
rector General McAdoo has made no
statement on the subject, but it is
known that he has absolutely no in
tentioa of following the course re-
ported.
The president and the director-gen-
eral are prepared to give the present
congress every possible opportunity to
act on the suggestions made by the
president in his annual message and
On the recommendations made by the
director-general less than a week ago
Hearings to BE Held.
1t was pointed out today that Com
merce committees in both houses OF
congress are preparing to hold hear
ings on the railroad situation immedi-
ately after the holidays and that any
action looking toward relinquishment
of the roads would be a deliberate
slap at congress. The president
would be in the position of asking
the legislators to do something and
then of taking the matter out Of their
hands before they had any opportun
lty to act.
The president and the director-gen-
eral are convinced that the railroads
should be turned over to their owners
promptly unless further railroad con-
troll than that now authorized is pro-
vided. They are prepared, however.
to wait upon the present congress to
net upon the recommen dations made
and it can be positively stated that
the status of the roads will not be
changed during the life of this con-
gress. They will be relinquished from
government control, it was officially
stated, only if congress fails to take
any action.
Officials here were keenly interested
in the reports from New York's f1nan-
cial district and there was some dis
position to scent a market plot. Eff
forts have been made to trace their
origin, but without result
Financial Aid for Roads.
Announcement probably will be
made in the next few days of arrange
ments by which the War Finance cor
poration will extend financial aid to
the railroads under government con-
troll.
The revolving fund of $500, 900,
appropriated by congress to aid the
railroads in capital expenditures for
equipment and betterment needed to
increase efficiency, has been nearly
exhausted.
Director General McAdoo and Sec
rotary Of the Treasury GLASS are Civ
ing close study to the problem of pro-
cedure in obtaining the necessary
funds. Additional money is necessary
to carry out the program of improve
ments already approved by the Rail
road administration. It is expected
that the situation will gradually I'M
prove after the first of the year with
Increased revenues and no back pay to
meet, but the process will be too slow
to meet the INN ediate situation.