Evening journal., 1919-01-15
RAIL Credit HURT
BY U.S.. OPERATION
A. P. Thom Conte n d S
Against G overnmen ent
Control and Ownership
PROBLEM MAY co
TO NEXT CONGRESS
BY the United Press.

BY the United Press.
WASHINGTON, Jan. i5.-Senate Dem
ocratic leaders have decided the rail-
road problem must 60 over 10 the Re
publican Congress.
They have given up hope Of framing
and passing bills disposing Of the rail-
roads before March 4. IL developed to-
day.
Il don't see how we can get legisla-
tion at this session" said Senator Smith,
South Carolina, Democratic chairman OF
/ the Senate Interstate Commerce com
mittee. Republicans, however, will
make an effort 10 prevent President
Wilson turning the roads back before
the 2i months period is up. Senator
Cummins will introduce a resolution TO
that effect as soon as the present hear
ings are over, he said today.
In discussing the impossibllity Of
passing adequate laws at this session
/ II was pointed out that hearings are
scarcely half over-shippers. State util-
i ity commissions, labor organizations
and several railway executives are yet
unheard.
Republicans on the committee, how
ever, are quietly working and expect
TO pick up the question after March
4 where the Democratic Congress drops
it.
Senator Cummins expects. 10 stump
the country on the railroad question
as soon as the hearings are over. Mean
time he plans pushing his pending bill
to restore the rate making authority
Of the Interstate Commerce Commission
by eliminating that power which the
Federal control act transferred 10 the
President.
Labor organizations-largely railroad
employes-are filing resolutions with
the Senate Committee favoring govern
ment ownership and the flve-year eX-
tension plan proposed by McAdoo.
A. p. Thorn, counsel for the railroad
executives, reappeared today for ex-
animation. He argued against both
government control and government
ownership, contending only for Fed
eral department Of railroads with regu-
latory powers.
The only result Of the plans Of Will
liam G. McAdoo for the immediate fu-
ture OF the railroads-the flve-year eX-
tension Of Federal control-will be "a
remove the roads further from the
hands Of the private owners, according
10 Mr.. Thom.
Operation Of the roads by the gov
lernment during the war disclosed q
well defined tendency on the part OF
the officials connected with the Admin
istration Of the roads TO use the credit
Of the railroads TO their detriment. The
public and the owners Of the roads can
not know and have no way OF finding
out who would handle the railroads
during the proposed fve-year extension
OF government control, Mr.. Thom de-
clared.
"we do know, however" he said
that there is a common temptatior
for any government official TO fois
financial burdens OF Federal operation
upon the credit Of the roads"
Roads Owners Offended.
Railroad owners are human, Mr
lThom said, and their love OF possession
is quite as strong as the love Of powel
found in the government ownership ad'
vocates. Railroad owners loyalty sur.
rendered their property 10 the contro
OF the government for the prosecution
Of the war on a broader scale, h'
pointed out, but are offended by The
lapparent moves 10 take advantage oi
this fact by continuing control during
times Of peace.
The enormous power Of the Direc
tor General cannot be Overstated,' Mr.
Thorn said. 1--WE do not know who Ia
will be from time 10 time and yet hi
decisions 90 10 the very foundation o
the credit Of the railroad properties
When the governments revolving fun'
disappears there will be a tendency Z
spare the governments credit and L
use the credit OF the roads,
To illustrate his contention that un
der government management OF the rail
roads the credits Of the roads have
lbeen used when the credits Of the gov
ernment should have been employed
Mr.. Thorn declared that instead OF as
sets amounting to sif7JWO,OOO th'
roads now show only SSOO,OOOOOO. HI
declared that the president Of tn
Western division Of short line road'
endorsed his position toward the rail-
roads.
1--WE are told we can go to the cour
Of claims and get our compensation
from Congress-" he added. How muci
chance would we have3"
"That depends on how much conn
dence you have in Congress- replie'
senator Cummins 1a.)
Congress does not fall over itself Il
making appropriation for railroads,
said Mr. ThOm.
Interstate Commerce COMMISSIONS
Woolley, the only member Of the com
, mission endorsing the McAdoo plar
was before the committee again for
short time for cross-examination. II
maintained that the return to privat
ownership would bring certain disaste
on many Of the short line railroads.
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