The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-01-03
McAdOO Appears Before the
Senate Commerce Committee.
Says Government Needs More
Time for a Fair Test.
LOSS OF ONLY 1856 MILLIONS
Believes There Would Be Sur
plus This Year In Earnings.
Says 81 Months Period Not
Enough for Good Show.

Washington, Jan. 3.-Accomplish-
ments of railroads under federal con-
troll in the last twelve months and ar
guments for a five year continuance
of government operation to provide
fair test of unified direction were re-
cited today by Director General NC
Adoo, testifying before the senate in
terstate commerce,-committee which
took up consideration of his recon-
Inendation for extension of control un-
til 1924.
Mr. McAdoo read a prepared state
ment more than $1,000 words in
length, constituting a comprehensive
review of conditions under federal
management. He planned to take
most of the day in presenting the tes-
timony-probably the last public
statement of his stewardship of rail-
road matters before retiring as Oh
rector general.
der unified control the director gen.
eral said:
Il. believe that under the handicaps
of war conditions a sufficient showing
has been made to indicate that all the
reforms | have mentioned are deSlr-
able as permanent peace measures
Yet it is clear that the general pubic
has not had an opportunity to appre-
ciate this and to weigh the real Valie
of what has been accomplished In
view of the far reaching importance
of any solution of the railroad ques-
tion which may be adopted the pubic
is entitled to have, before the present
federal control shall be terminated
a reasonably fair test under peace
conditions of the advantages to be
derived from these reforms
Too Early-Too Late.
1T will be impossible to review the
results of even one year OF federai
control under peace conditions until
the spring of 1920. and it will then be
TOO late Tor congress TO leglslate pc
fore the end of the twenty-one months
period after the declaration fHpeace,
provided in the present law for gov
ernrnent control. Operation under
peace conditions with a tenure so short
as the twenty-one months cannot pos
sibs constitute fair test
Reasons for this, he explained,
wonld be the inevitable disturbance
TO femployes' morale, the difficulty or
carrying out an extensive program OF
improvements and of forcing on rail-
road companies necessary expendi-
lures.
fsIndeed," he added 1.-The difficult
ties with operation during the twen-
ty-one months period will be so seri-
Gus that do not see how the govern
1nent can be fairly asked to encounter
them. 1t seems to me that anyone
who wishes a fair and dispassionate
mate solution and as TO the extent to
(which the reforms 1 have mentioned
are in the, interest of the American
public, and as to the way in which
those reforms can best be accomplish
ed-if in the interest of the American
public-must be anxious to have a
reasonable period of federal control
after the war. under conditions cal
culated to make for tranquility and
sinele-mindedness upon the part of
Y-eiIr nj iH11
do not mean that this would be de-
sired in order to accomplish govern
ment ownership"
Want Property Valuation.
Another reason for longer test
period. said the director general, is
that ACCESSIBILITY of having adequate
information on valuation of railroad
property now being gathered by the
interstate commerce commission to
guide congress in legislation providing
a permanent solution of the railroad
problem. Referring to the increase in
freight and passenger rates, six months
ago, Mr.. McAdoO said that similar ac-
ton would have been necessary even
under private management to prevent
serious losses. and said it should be
possible to lower rates materially this
year.
Uniformity of rates and equita bIe
distribution of the rate burden over
all railroads regardless of the fact
that some are unusually prosperous
and others poverty stricken. is pos-
sible only under unified control Mr..
McAdoo urged as another argumen MT
for the five year continuance plan.
Great improvements and extensions
should be made in terminal facilities
by enlargement and construction said
the director.
Loss of 1885, Million.
This he said. provides the greatest
opportunity for reducing railroad costs
and promoting public convenience
in the future. Mr. McAdoo estimated
the governments loss in operating
railroads this year at S1S6. 100000,
This represents the difference between
the amount guaranteed to the roads
as rental and the sums credited to
the government in railroad income
If the higher rates had been in effect
the entire year he estimated the gov
ernment would have made surplus
of 800. 100000 and in 1919, with ex.
listing wages, operating cost and traf-
fic volume remaining substantially the
same as in last year. the government
should make surplus of 100000, 900
"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, 1 conf,
IDENTIFY believe that it will be possible
during the year 1919. or certainly a
the end of the year 1919, to effect z
considerable reduction in rates unles.
the traffic for 1919 should be mucf
less than it was in the year 1918"
700 Millions More Pay.
Wage advances to railroad empIoye,
last year added between $f0h O00 Ool