New-York tribune., 1919-01-25
Grain, Livestock and Petro-
leum Men Declare They
Are Robbed of Safeguards
Senate Committee Acts
Calls for Directors Files,
and Remedial Legislation
at Once Is Predicted
Ne,c York Tribune
Washington Bureau

the Senate Interstate Commerce Com
mittee when Clifford Thorne, testifying
before the body on behalf of various
livestock, grain and petroleum ship
pers, disclosed the extent to which the
Federal Railroad Administration, by
arbitrary orders, has set aside the
statutory and common law provisions
concerning damage claims against rail-
roads.
Order after order, issued by William
G. McAdoo during his term as Director
General of Railroads, was read into
the record by Mr. Thorne to prove his
contention that shippers have been
robbed of their safeguards and rend-
cred more or less helpless in their
efforts to obtain just settlement of
their claims.
"If the members of Mr.. McAdoo's
staff had deliberately planned to
double-cross the Director General and
thereby to make government operation
SO unpopular that it would. tend to kill
any possible movement towari govern
ment ownership" said the witness,
"they could not have adopted more
effective methods"
Preliminary Bill Likely
SO manifest were the feelings
aroused among members of the COM
mttee who were present at the hear
ing that it is not improbable that an
effort will be made to report out a
preliminary bill that will grant to
shippers the immediate relief de-
manded without waiting for the final
policy of Congress concerning future
repulatiOn of the railroads.
"If the Director General of Railroads
can construe the Federal control act
as giving him authority to set aside
established law" said Senator Cum
minis, then there is nothing that he
cannot do In their intense desire to
win the war the people of the country
have submitted to many things which
never would be tolerated in time Of
peace"
By way Of imm .diate relief Mr..
Thorne appealed to the committee to
lay aside for the time being considera-
ton of the fundamental questions of
railroad problem and amend the
Federal control act at once so as to
ID restore the suspension power of
the Interstate Commerce Commission;
90 strike out the clause in the act
which has been construed by the rail-
read administration as making the or
ders of the President, issued through
the Director General, superior to state
and Federal statutes and common law;
and 81 insert clause requiring the
Director General to pay final judgments
against common carriers under his con-
troll and charge them to operating ex-
pense, where so chargeablc prior to
government operation.
Unpaid Claims Piled up
The witness said he had been in
formed that there were at present more
unpaid claims for damages filed with
the railroad administration by shippers
than there had ever been in the history
OF American railroads.
The orders he read to the committee
from the files of the railroad admins
tratlon showed that the Director Cen
eral had not only set aside established
principles and rules of evidence in dam
age cases, but that he had issued in
structions TO regional directors not to
pay judgments rendered in favor of
Shippers, where the verdicts might have
been based on passion or prejudice"
Inc witness had not got half through
quoting from the orders Of the Director
General, when Senator Pomerene Of
ONO, Democrat, and acting chairman Of
tne committee, peremptorily dir d
the clerk Of the committee to procure
complete sets Of all orders and nstruc-
tons issued by the Director General, so
tha. the committee could see for itself
Inc full extent to which the railroad
ADMINISTRATION had set aside the law.
Senator Kellogg unhesitatingly
charged that Mr. McAdoo had exceeded
ms authority, even under the broad
powers of the Federal control act, and
IN this he was sustained by the opin-
send.
whether the authority does or does
not exist in the present act," declared
sir. Ihorne, what the shippers want
IS that you clear up the ambiguity in
tne law before the railroads have sue
ceeded, through more orders of this
KIND from the Director General in put
ting over something more on the ship
pers than they have already done"
:. Inc committee adjourned over until
Monday, when Mr.. Thorne will again
take the stand He Will be followed by
r. T. Fuloright, representing the South
western Industrial Traffic League.
Statement by Witness
At the outset Of his testimony to-day
dr. Thorne presented the following
written statement:
Government operation is so dis
tasteful among the shippers Of the
United States that we're a popular vote
taken today it would be defeated over
"helmingIy.
II the members of Mr.. McAdoo's
s!an rad deliberately planned to
aouolecross' the director general, and
thereby to make government opcr-
alton 20 unpopular that it would tend
70 XII any possible movement toward
goYernrncnt ownership, they could not
nave adopted any more effective
Methods shan those which actually
haye been adopted
Do not think for an instant that
'nese railway officials have attempted
70 'doublecross' Mr.. McAdoo, for they
are honorable men. Unquestionably
me emergency demands Of the war
|ere largely responsible for the ex-
@t1ng situation.
=, There are some good things which
or AcAdco and his associates have
accomplished that must be saved out
oi the wreckagc. To do this intelIi-
gently and efficiently will require sev-
sfal months Of discussion and the
safetui drafting Of laws that will make
sofne very important changes in our
present statutes. During this inter
va the shipper wants protection
against business organization having
powers that are autocratic and deg
: potic in character.
IN the midst Of the intensely in
serssting and instructive discussion