The Birmingham age-herald., 1919-01-04

animation Of the director general to- morrow morning. At hearings next week A. F. Thom, counsel for the Asso- ciation of Railway Executives, will be heard in opposition to the fve-year ex- tentior plan and representatives of Snif psi and state commissions will bs given opportunity to testify. Walker D. Hines, assistant director general, and other railroad administration offi- cials may be heard tomorrow
 Reading long prepared statement today MT. McAdoo disclosed to the committee that the aggregate govern ment> compensation to all roads for 1918 is calculated at a little less than $500, 000.00 that this Is about $780, 900. 900 more than the railroads net income-this sum representing the de- ficiency which the government will have to pay, and which MT McAdoo said should be considered war expense between $600.000.000 and $700. 900. 900: and that the coal bill for 10 months last year was s140,0O0,00 greater than flor the same period of 1917
 SUGGESTS REFORMS MT. McAdoo cited number of trans portation reforms which he said should be continued in the future. These in- 1 cluded pooling and cooperation among l railroads to enlarge and centralize terminal facilities, whose cramping un- der present conditions, he said, Is large 1 ly responsible for traffic congestion and l perodcal freight jams Other ad- | vantageous reforms suggested were the working out of the economies eliminate
 ing useless competition, common use
 of cars, locomotives. shops, ticket of | Aces standardization of equipment 1 elimination of circuitous routes and | in general, operation of the railroad as
 a national system instead of as local competing units.
 i 'I am frank to say that I do not | believe that these important reforms | can possibly be accomplished if we
 are to have in the future several hun dred different railroad companies as we have had in the past" continued the I director general "or even 100 or even
 50 different railroad companies. I be- lieve they can all be accomplished eith :
 CT through comparatively few rail- road companies or through single fed | eral control"
 1 One of the strongest arguments for unified control the director general /, said, is the necessity of dealing with | periodic conditions of transportatioii 1 stringency. which diversified private
 managements have not been able 10
 meet because of lack of thorough CO., 1 operation.
 1 CO-ORDINATION IS SOLUTION
 Turning to coordination of the rail i systems with inland waterways MT.
 McAdoo said
 | .It has seemed to me evident that l by developing transportation on the 1 waterways and cO-ordinNting Nnd 1 articulating them with a unified rail way system, shall bring about a correct solution of the rail-water con troversy which has been in progress for 50 years This is possible with the railways under federal control. l doubt If any of our rivers or canals will be- tcome active factors of transportation If the railroads are turned back to private control The old method of rail iway of competition with the waterways ' doubtless will be revived and the water way comoetition win the waterways
 survive that competition.
 ROAD EXECUTIVES PRESENT
 Attending the hearing today wer.
 many prominent railroad executives intrastate commerce commissioners
 railroad labor leaders, state railroad commissioners, shippers representa-
 lives and railroad administration off
 cials A. P. Thom followed the testi
 mony intently. With him were How
 ard Elliott, chairman of the North fl ern Pacific Samuel Req, president 0 the Pennsylvania: Daniel Willard. pres
 idant of the Baltimore and Ohio. ant
 Julius Kruttschnitt. chairman of th Southern Pacific. Others present wer' $. Davies Warfeld. president of th' National Association of Owners of Ran
 road Securities: Bird NJ. Robinson
 president Of the American Short Lin' Railroad associations. Clifford Thorne representing shippers; C. F, Elmquist president of the National Association of Railway and Utility commissioners
 and IT. Dewitt Cuyler chairman of tn Association of Railway Executives.