Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-04
MR.. M 'ADOO FIRM
FOR 5YEAR TEST
Tells Senate Committee All
Other Railroad Plans Are
"lnadequate Expedients."
UNIFIED CONTROL NEEDED

Senators sought in vain today to
draw from Director General McAdoo,
testifying before the Senate interstate
commerce committee at hearings on
prospective railroad legislation, an al
tentative recommendation for legisla-
tive action in case Congress declines to
follow his suggestion for a five-year
extension of government control.
The retiring director general re-
fused to express definite opinions.
Other plans than the prolonged test
period he characterized as 'inade-
quate expedients," .'poultices" and
At the end of Mr. McAdoo's explana-
ton of his attitude, Senator Watson
of Indiana said:
Then, Mr.. McAdoo, you have only
one suggestion, the five-year plan. II
Congress votes this down then you
have no recommendation for another
system of administering the rail-
| roads"
Cites Necessity for Control
NO, haven't" replied the director
general I'VE have now reached the
place where America is expected to
go ahead without faltering and with
out interruption of her business in
terests. We have spent a billion dol
lars in a merchant fleet If we sur
render the advantage of unified con-
troll and have even temporary inter-
ruption of smooth railroad operations.
then we give up a great opportunity
h iah I
This is one of the biggest reasons
why l think we should continue fed
eral operation"
During the hearing Senators Kel-
logg. Townsend and Mclean tried to
get Mr.. McAdoo to give his ideas on
other solutions.
Suppose We try your experiment
for five years and find it a failure,
| said Senator Mclean. would it denf-
onstrate the failure of government
ownership or government control? In
other words can we test one system
by trying another"
"My judgment is" said Mr.. McAdoo,
that the five-year test would show
something conclusive don't know
what" \
Existing rate structures would con-5
tinue if railroads were turned back tos
| private control until changes were made
| by orderly legal procedure. even where
states have specific rate laws. was the
The Interstate Commerce Comnis-
| sion has power to prevent discrimi-s
| nation in rates, and this power could
be invoked, said Mr.. McAdoo, to pre-
| vent Inequalities between intrastate
and interstate rates. He called atten-
| ton to the fact that the courts have
| power to annul rates which might be
confiscatory in view Of the present
/ high cost of operating.
| The director general also expressed
| the opinion that railroads operating
privately could maintain Joint ticket
! offices without violating antl-trust
| laws.
Challenged by Mr.. Kellogg.
| Senator Kellogg of Minnesota chal-
| lenged this conclusion.
Don't you know the Senator in
| uuired, that when A committee OF
| railroad presidents tried to unity the
! roads before the government LOOK
hold, the Attorney General inquired by
what authority they were acting. and
intimated that they were violating the
law?
| all competition between railroads?
| Don't you think that the competition
of service has been a principal factor
| in promoting good railway servfce?"
Mr.. McAdoo replied: Il don't know
| vet whether it would be best to elm
mate all competition. 1udl 10 why
want a hve-year test period. 1 do not
| think competition is an unalloyed
| blessing, but a longer trial will show
| how much Of it may be necessary
Questions on Unified Control.
Senator Kellogg sought by his ques-
tions to show that the railroads. oper-
atine privately, but with unified con-
troll under some sort OF government
economies and reforms advocated by
Mr.. McAdoo.
The senator referred particularly to
mbargoes which the director general
maintained should be imposed as
emergency measures through exercise
of the permit system. whatever form
of control is adopted Mr.. McAdoo
suggested that to prevent abuse of
the embargo power railroads should
Fpt be allowed to act alone and arbi-
, aariiy, but possibly with the super
vision of the Interstate Commerce
Commission.
Senator Underwood questioned
whether embargoes would be neces,
sary under peace conditions when
ports are not congested-
Rate Raise Not Considered.
Senator Kellogg asked:
Mr.. McAdoo you have stated that
II SnoulO De poSSlOfc 10 KcouCc. IdlcS
this year. AS a matter Of fact, has
not the railroad administration plans
on foot for raising rates.?
NO." replied Mr.. McAdoo: ~we have
under consideration a plan for equali-
zation of rates, which may have the
incidental effect of raising charges in
some localities"
He referred to the proposed plan for
standardiZing class scale rates, both
intra and inter state.
Senator Kellogg then turned to the
matter of the supply of rolling stock
added during the past year, showing
that, although the railroads need
about 100000 new cars year, only
$4,000 were delivered last year, and
that, although about 1000 new loco
motives are needed annually. only 542
were delivered.
Really More Cars Claimed.
The director general replied that,