Daily capital journal. (Salem, Oregon) 1903-1919, 1919-01-03
MADOO SAYS THERE
ARE 3 ALTERNATIVES
TO ROAD SITUATION
Believes Many OF Changes Inauguraed In Railroad OPP
- Grafton During Last Year Should Prove Of Perman-
ent Value Whatever Form OF Control Is Decided On

Washington, Jan. 3.--Return Of the
railroads to the several hundred com.
panies which, controlled them before
The. war is- impossible if certain i'm.
portant reforms are to be- preserved,
director general McAdoo declared in
q statement to the senate interstate
commerce committee today.
McAdo0 declared there are three al
ternatives in the railroad situatisn:
Return to several hundred GEM
panies controlling them before Che
war
2-Goyernmeut ownership and con.
tgol.
DEMONSTRATION Of the railroad
map so as to. wipe out the hundreds of
different companies and substitute a
few, under strict government eontroi,
TO combine the advantages of unified
operations witk initiative of private
management.
McAdoo presented complete review
vf the policies inaugurated by the rail
road administration.
Changes Would be Valuable
Many of the changes in the rail-
road operation inaugurated during the
period Of the last year should prove of
permanent value and. should continue
II possible, whatever form OF control
6ss decided upon for the railroads, =
saide McAdoo.
Among these reforms, McAdoo in
ciuded: g
Maintenance of the permit system 50
~ to control traffic at its source.
Maintenance Of heavy loads for cars
Pooling Of repair shops.
Elimination of circuitous route.
Unifieation of terminals.
Consolidation of ticket offices.
Utilization of universal mileage tick
cts.
Standardization of equipment.
Maintenance of uniform freight
classification introduced by the rail
road administration.
Common time tables between import
ant points.
High demurrage rates and uniform
rules.
Establishment of through waYbilling
freight from point of origin to desti
nation.
Rendering unnecessary the re-billing
. connecting or intermediate roures.
Elimination of the practice of pay
ing on mileage or per diem rental for
fhc use of freight or passenger cars of
one carrier by another.
SimpificatiOn of the old practice of
npportioning inter-line passenger rev.
enue.
Substitute Water Routes
Use of water routes for the release
of crowded rail lines
Some Of these reforms can be con
tlnued should the roads be returned to
private operation, others cannot" said
NcAdoo.
"Compctition and self interest die
tate that when the roads are under pri-
Vate control each carrier gets as much
business as possible and keeps it, re.
gardless of the fact that the aggre-
gate result may be wasteful and un-
economical. -
Private carriers" he continued,
may not enforce rules which altho
designed to bring about efficiency and
economy, might drive business away
from their lines. All the waste result
org from these practices and running
into high costs, is paid for by the pub
Iic in the form Of increased rates.
Permanent Solution Needed
In presenting his views to the com
mittee, McAdoo said:
81 have given you that statement
for transportation conditions, year
ago, of the transportation achievements
uiider federal control during a year of
war and of the present situation.
"What remains to be considered is
what permanent solution of the rail
road problems should be adopted and
what shall be the temporary form of
railroad control pending a permanent
solution.
.'In December. 1917, there were
aoout 1S0 separate operating railroads
c mpanies in the United States with
operating revenues of s1,00O,O00 or
more per year each Seventy niree of
taese companies had operating reyen-
pes of sl9,O00,000 or more per year
each.
.'There were several hundred COM
panies whose respective operating rev.
enues were less than 100000 per
ycar.
Net Committed to Any Pan.
Broadly speaking, there are three
& neral pcrmaaeni solutions of the rail
I al question, the first is to send the
fCOnfiufed an uage fourl