Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-01-03
New Argument Advanced
For PHolongstiOn of
Federal Control.
MORE TIME NEEDED
FOR REHABILITATION
Director General Appears Before Sen.
ate to Argue For Extension Fer Five
Ysars-Deeiarss Test Of Plan Has
Not Been Possible Under Twenty
One Months Of Government Hand.
linn.

Washington, Jan. 3.-Accomplish-
ments of railroads under control in the
last twelve months and arguments fol-
the fivc-year continuance Of govern
ment operation to provide fair test
of unified direction were recited today
by Director General McAdoo, testify
ing before the senate interstate COM
mcrce committee. which took up con-
sdcration OF his recommendation for
extension of control until 1924.
Mr.. McAdoo read a prepared state
ment more than $4,000 words in length.
constituting review of conditions,
he planned to take most of the day in
presenting the testimony-probab bly, the
last public statement of his steward
ship of railroad matters before retiring
as director general.
As Peace Measure Now.
After citing reforms effected under
unified control the director general
said:
of war conditions a sufficient showing
has been made to indicate that all re-
forms I have mentioned are desira ole
as permenant peace measures. Yet it
is clear that the general public has not
had an opportunity to appreciate this
and to weigh the real value of what
has been accomplished.
1T will be impossible to review the
results of even one year of federal
control under peace conditions until
the spring of 1920, and it will then be
too late for congress to legislate be-
fore tho end OF the twenty one months
period after the declaration OF peace,
provided in the present law for gov
ernment control. Operations under
peace conditions with tenure so short
as the twenty-one months can not pos
sibly constitute fair test"
Reasons for this, he explained, would
be the inevitable disturbance to en-
ployes morale. the difficulty of carry
ing out an extensive program. of i'm
provements and of forcing on railroad
companies necessary expenditure.
Admits Hes in . Hole. i.
Indeed he added, "the difficulties
with operation during the twenty one
months period will be so serious that L
DO not see how the government can be
1alriy asked to encounter them. It
seems to me that any one who wishes
a fair and dispassionate study made
as to what is the best ultimate solu-
tion and as to the extent to which the
reforms have mentioned are in the
interest of the American public and as
to the way in which those reforms can
be best accomplished-if in the interest
OF the American public-must be
ANXIOUS to have reasonable period of,
federal control after the war under
conditions calculated to make for tran
guilty and for singlgemindedness upon
the part Of the federal railroad oreani.
zation. do not mean that this would
be desired in order to accomplish gov.
ernment ownership.
Another reason for a longer test
period is the advisability of having
adequate information of valuation on
railroad property now being gathered
by the interstate commerce commits
sion to guide congress in legislation
providing a permanent solution Of the
railroad problem,
Governments Loss $136, ,00o, 900.
Uniformity OF rates and equitable
distribution OF the rate burden over
all railroads regardless OF the fact
that some are unusually prosperous
and others poverty stricken, possibl.
only under unified control Mr.. NC
Adoo urged as another argument for
the five years continuance plan.
Great improvements and extensions
should be made in terminal facilities
by enlargement and construction, said
tho director. This he said, provides
the greatest opportunity for reducing
costs and promoting public
in the future. I
Mr.. McAdoo estimated the govern
ment loss in operating railroads this
year $136, 100000. This is the diner-
eHce between the amount guaranteed
TO the roads as rental and the sums
credited to the government in railroad
Income. II the higher rates had been
In effect the entire year he estimated
the government would have made a
surplus Of 100000, 900, and in 1919.
with existing wages. operatinx cost
and traffic volume remaining su5stSsSa :,
tislly the same IS in last yeAr. tha
government SHOULD make = surplus Of
800, 100000.
Hopes For Profit in 1S19.
Since the object OF the government
should be at all times to operate the
railroads not for profit but at COST
he added, and to render At the Same
time the best possible service. cop-
fidently believe 1t will be possible dur.
Ing the year 1919 or certainly ataths
md OF the year 1918, to effect con-
siderable reduction in rates unless the
traffic for 1919 should be much less
han It was in the year 1873
Wage advances to railroad employees
last year added between 500, ,UUs,co0
and $500. 900 900 to the payrolls Mr~
McAdoo testified. ID
In addition the coal bill was $40,
eo,SD higher for the ten months Of