New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-04

10 QeNeIOp MS inquiries concerning INC
renewal of contracts with the roads /
the period OF Federal control were cx-
tended beyond the original maximum
of twenty-snc months. and drew from
the director general tho admission
that the roads might be unwilling 10
renew these contracts.
But" the Senator added. unless
they would agree, you would be con-
tscating their property. And in that
event the government would have to
pay to the roads the real value of their
property"
Mr.. McAdoo replied that Of the 10
roads under control there were con-
tracts with only twenty seven, not in
Guiding short lines.
McAdoo Insists on Test
the period of control to FIVE years. do
YOU believe that Congress should re-
tain the provision in the present law
extending to the President all the
powers and obligations of the present
law, including the authority to set
aside all state laws and orders of state
ccmmissions'
McAdoo-Yes. to the extent that fed
cral control of the railroads under the
law is made exclusive.
Cummins-I do not question at this
war measure, but | most certainly do
for this proposed tive-ycar period in
peace times.
McAdoo-We must have the concen
trated power in the present law pre-
served for the period of the test, as for
example in the matter Of rates.
Cummins mean you would have
this Federal control of rates continued
without reference to whether the rates
are lntra or Interstate.
McAdoo-lt is necessary to consil-
CT all rates as interstate under Federal
control.
Cummins-Do you think consttu-
tlonal authority for such action in time
of peace exists?
McAdoo-I think so.
Rates Could Be Reviewed
Cummins-Do you also believe that
during the proposed period the Presi-
dent or the Director General should
have authority to initiate rates with
out reference to the Interstate Com
merce Committee?
McAdoo-That is very essential,
though retaining power in the Inter
state Commerce Commission to review
Whatever rates are fixed.
Mr.. McAdoo admitted that among
other things it would take too long
tor the Interstate Commerce Commits
sion to initiate all rates.
That" replied Senator Cummins,
assumed that the acts of the Director
General are always wise. | have OBJ
served that you have revised and modi-
| ned many times since rates which you
applied Immediately in the first in
stance without opportunity being given
for adjusting them
SENATOR replied Mr.. McAdoo, 1--WE
had hard job to do We had to lick
/ the kaiser"-
Cummins-I am speaking of the sit
uatlon as it would exist in peace times.
i, McAdoo~-The manner Of exercising
these powers in time of war would not
! have to be followed necessarily in time
OF peace Every one recognized that in
ay!n& percentage increase IN rates
old inequalities would only be aggra-
waited, but it was necessary to grant
the increases at once and review them
atterward. In peace time no increase
IN rates would be made without STUDY.
believe in allowing the |. c. c. to
! continue to review rates, but not init
ate them. You might require the Pres
ldent or Director General to give thirty
days notice before establishing any
new rates.
Cummins-Would You be willing to
! contlpue 70 pay to the roads compen-
sation at the standard fixed by the
present lave
Possible In Test Period
McAdoo--Wc could afford tc do it
MIR McAdoo, in reply to questions
sand that if the hve-year extension
were granted he would favor tfkinr
all the short-lire roads under Federal
control
Cummins-You spoke of providing
4oVo,ooo,o00 annually for extensions
and improvements. If the period of
control were extended to five years
. .hat would mean a total outlay for
those improvements of $2.500,0O0,OO0
Wnere would you get the money!
NcAdoo - The credit of the roads
would be sufficient if we allowed them
to make money. ~
Cummins 1t would be difficult TO
/ compel the companies to assume the
obligations. ''e
.McAdoo-With the government back
! ol mem and with the period of govern
them ~ ''"a'lee
senator Cummins then produced fir.
! NreS issued to-day by the .statistic5l
! no1Vlslon of the Interstate Connnr"o
Commission showing that whjjc ~
operating revenue OF the roads in 1913
| Was approximately $1,000 900 moro
Saan IN IN 1917, the net revenue was
2-11'o0o'ooo less. Mr. McAdoo CON
s senaed that the comparison was nor
lar Ia one, first, for the reason that II
qua not show the difference in tho
Volume of traffic moved. nor did -
Jake INTO account the fact that +bo
war exlgencias demanded that tho ro;1
road administration operate o ''loi
regardless of cost l'c'
Effect of Influenza
When Senator Cummins +bo,,
mat the net revenue for October 1ofo
,n,, @Io,oO0,00O less than for Octoba~
~ a. though the operating roven11o w.,
;lo 'oo9'ooo more, Mr.. McAdoo aua;n
ft.':aSted mat the comparison was mn
nalr Tor the reason that many Of tbo
wage adjustments, under tho ro a. .me
az otse o neclsaon' were made in the month
ol october, and that operation was
ma especially costly by reason Of
' 'he tact that $4,000 EMPLOYEES mora
l~id up in October, 1913, With indrl
defending his prediction that tho 70
sSurhs would be much better in 100
nr. McAdoo declared that il wou, az No.
possible not only to vine ont "t ~ Ne
ilclency Of $4,000 900 below o gme &C.
'eed |, rental, but to provide suTn f'I'
ol sloo'0oo,ooo, making possible Mo
suggested cut IN rates. In this connec-