Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-04

materials Tor the whole year, although
higher rates were In effect only six
months"
Must Keep Roads Out Of Politics.
Turning to the question of q threat
cred breakdown in morale among
ofhcers and employees, which he feared
X government control should be
limited to twenty-one months, the di-
rector general said:
1T would be difficult with the i'm
bending presidential campaign to
politics. If the railroads are held only
twenty-one months. / fear the en-
ployes themselves would become OBJ
Jects of solicitation for one plan of
campaign or one group of candidates.
The railroads OF the United States
must be kept out Of politics. I have
relfgiously kept politics out Of my ad-
mtnistration. / do not know the poll
Tics of my assistants or my regional
directors. i selected them because of
their ability to run the railroads. II
Tor the reason that railroad men
might foresee change of masters,
the result. fear, would be lowering
OF effciency and this would work out
as danger to the lives of travellers"
Advantage of Five-Year Trial.
Senator Townsend of Michigan in
terrupted: But won't you just post
pone this condition and extend agita-
ton over five years instead of two?"
Mr.. McAdoo replied that with a five
year period, railroads could operate
at least three years without prospect
of change and by that time Congress
should be able to develop a perma-
nent solution.
The director general also cited a
number of examples of objections by
NJ 6 Ia L
ing improvement deemed necessary
by the federal administration. If con-
troll were extended five years, he
said, there would be less inclination
to postpone improvements.
Questions by Senators.
At the hearing yesterday afternoon
Director General McAdoo was sub
jected to fire of questions by Sena-
tor Cumm1nS of Iowa and Senator KEEL
logg of Minnesota, intended to develop
the reason why Mr.. McAdoo believes
1t advisable to turn back the railroads
to their private owners as soon as
possible If Congress does not extend
the period of federal control for five
years, as recommended by the director
general.
Both senators argued by Implication
for retention by the government of
the railroads for the full twenty-one
months after the declaration of peace.
authorized by the existing law, and
Legislation meanwhile by Congress to
provide a permanent solution Of the
railroad problem.
Mr.. McAdoo gave three reasons why
he does not believe in retaining con-
troll of the roads for the twenty-one
months:
That railroad companies already are
challenging the authority of the rail-
road administration to require them
Io-puFchase certain equipment, and
otherwise are not giving q full meas
pre- of cooperation.
= That some state railroad commits
eions threaten to dispute the right of
the federal management to dictate
intrastate rates in normal peace
times.
: That the uncertainty of the future
Toad organizations particularly de-
7structive to morale of employees and
officers.
: Answers Senator Cummins.
To Senator Cummins' comment that
ne thought it little less than a crime
10 turn back the roads at an early
1aate. with the standards of wages,
1naterial costs and rates as they are,"
end that unless the roads are given
more time to prepare it will be little
.ehort OF disastrous" Mr.. McAdoo re-
piled:
: Il cannot foresee such q situation
1t all unless the state commissions
Ind tho Interstate Commerce Com
mission. ignoring the necessity for
maintaining wages and the rights of
Just 0ompensation, would reduce the
rates un1ustly. Ny idea Of this rail-
rad problem Is to stabilize condi-
items for i've years. to play safe, and
try ont unified management for that
long. Then we will know better how
TO deal with the railroad question:"
MI. AoAdoo declared that his inoli-
nations had always been against
public ownership" and in favor of
some sort Of orfvate ownership with
stnbng unifieA control and that ne
was not In position to say whether
government operation, private opera
ton by railroads merged into region
al monopolies or diversified operation
by Zach road, under government SUI
pervidou. would Be- preferable.
Favors Test Of Problems.
!. 1T 10 to test these problems under
normal peace conditions that I want a
dve-year extension Of E,oyernment
management" he explained.
Senator Pomerene asked II railroad
administration lawyers had considered
whether Congress had power to legis-
late government management Of rail-
e3ads Tor i've years In peace times.
Nj. McAdoo said he believed Congress
bad power to take control Of railroads
for ntnety-nine years II 1t wished.
= At hearings next week, A p. Thom,
counsel of the Association Of Railway
Executives, will be heard In oppose
ton to the hye-year extension plan.
and Representatives of shippers and
state commissions will be given oppor-
tunity to testify.
TO CONFER ON G. O. P. MATTERS