The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-04
NJ ADOO THREAT
MADE IN 5 YEAR
RAILROAD PLEA
Says Properties Will Be Re-
turned at Once if Extend
ed Control Is Refused.
SENATOR'S GET WARNING
Longer Test Is Due the Public,
Saws Observation-Disclosures
Big Surplus in Year.
snectnr pespatcA 70 Trn sux.

WASHINGTON, Jan. Sunless Congress
agrees to the five year extension Of
Federal control of railroads desired by
back to their corporate owners before
the expiration OF the twenty one months
after the proclamation OF peace, whether
Congress shall have had time to enact
necessary legislation by that time or
not
This was the threat held up to the
Senate Interstate Commerce Committee
today by Director-General McAdoo In
The course OF three hours of gruelling
cross-questioning by the committee, fol-
lowing as many hours devoted to a pre-
pared statement read by Mr.. McAdoo In
review OF his administration OF the rail-
roads and in support OF the plea for
a Ave year test period"
The possibility that Congress may find
il necessary to forestall such action by
. resolution was pointed out in THE Sun
on Sunday last
In the face of repeated statements by
Committee members that Congress should
he permitted time in which to prepare
,c-islation TO take care Of the changed
relations between the Government and
private ownership of railroads, Mr.. Nc
ton" that II the Ave year plan was not
10 be agreed on the railroads should be
rcturned to private ownership ''as soon
az possible
Fears CONNIE rcial Suicide.
Mr. McAdoo's contention was sum-
-1arized by a member Of the commit
20, as a plea that unless the Ave year
Han Is agreed to the railroads i'm
;redately will commit commercial
suicide to discredit Government owner
ship and avoid being bound to certain
improvements and extensions which the
Railroad Administration believes essen
'ial before the expiration Of the twenty
one month period.
My feeling is this declared Mr.. Nc
sdoo. in replying to questions by Chair
man Smith IS. c., with the short
tenure of twenty-one months control
facing the railroads the effect on the
morale would be unfortunate. 1t is a
question of human nature. Take the
rase OF the officers. nearly all of whom
have been transferred to the Federal
organization. When questions arise be-
tween Federal and corporation control
questions of extensions. equipment, inn
movements. Sc, the nearer the ap-
rrosch of the termination Of Federal con-
troll the more difficult II will be for
them to make their decisions When
such questions arise they are placed in
a difficult position and naturally Federal
control will rot be so effective for a
short term.
With twenty-one months as limit
of time and with the agitation bound
70 follow and with political campaign
'npending. I think marked impair
ruent of morale 81 officers and men VII
follow and corresponding loss II
efficiency"
IN his statement Mr.. McAdoo outlined
number Of proposed Improvement.
looking to unification OF terminals wiz
= view 10 economy in routing. the i'm
Orovements to involve an ultimate ex
pendture Of $500. 200, 900 in five years
VI urging the five year extension Mr.
McAdoo said the cooperation necessar.
to obtain agreements from the varou
roads involved in the proposed improve
r1ents would be much more quicki
forthcoming IL the roads realized in ad
vance that they FACED five years more o
Government control than II there re
maired OF II but twenty!Sne months.
an the absence OF such agreements,
said the Director 'the work could not b
carried forward. or else the Government
would have to finance the Improvement
md sue for reimbursement
~ tho five year extension plan |
odonted. after two or three years undo
rae conditions Congress will have ha
sucl test and demonstration OF tn
value Of urifled control as to make ii
rrch simpler matter for Congress {
arGle before the expiration of the Nv
ear period