Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-01-04
LONG TERM NEEDED
FOR RAILROAD TEST
McAdoo Argues for Adoption of
Five-Year Period of Pub
lie Control.
IN TILTS WITH SENATORS
His Replies to Cunrnins and
Kellogg Show Difficulties
Under Present Law.
IBy Associated Press.

WASHINGTON. January 3.-Direc-
tor-General McAdoo. testifying to-
day before the Senate Interstate Com
merce Committee at the opening OF
hearings on the future policy toward
railroads, was subjected to 4 fire of
questions by Senator Cummins, Of
Iowa, and Senator Kellogg, OF Min
nesota, Republican. intended to develop
why Mr. McAdoo believes it advisable
TO turn back the roads to private man
agement as soon as possible if Con-
sress does not extend the period of
Federal control for five years
Both Senator'S argued by implica ton
for, retention by the government OF the
railroads for the full twenty-one
months after the declaration of peace,
Hesitation meanwhile by Congress to
provide permanent solution of tho
railroad problem.
he does not believe in retaining con-
troll Of the roads for the twenty-onc
That railroad companies already are
challenging the authority OF the rail-
road administration to require them
I, 20 purchase certain eouipment. and
ure of o-operation;
That some State railroad commits
SONS threaten to dispute the right OF
and.
That the uncertainty OF, the future
organizations particularly destructive
to morale Of employees and officers
REPLIES TO CUMMINS'S
CAUSTIC CRITICISM
To Senator Cummins's comment tina,
he thought 1t little less than a crime
to turn back the roads at an early
date. with the standards of wages, ma
terial costs and rates as they are"
N lncc ta
more time to prepare 1t will be little
short OF disastrous" Mr.. McAdoo re-
piled:
II cannot foresee such a situation at
all unless the State commiss ions. and
the Interstate Commerce Commission.
ignoring the necessity for maintaining
sat!on, would reduce the rates unjust
". My idea of this railroad problem
Is 10, stabilize conditions for five years.
agement for that long. Then we will
know better how TO deal with the rails
elinations hade "always been against
snmn pnnte sopf 1wne9rshp; o9 and In favor Of
Mr.. McAdoo said he thought the
present principle Of operation should
be continued s.ei,,i for five years with power
ident.. and that short lines should be
included in the national system.
READS LONG STATEMENT,
GIVING RECORD OF WORK DONE
ment. more than 5000 words in length.
After citing reforms effected under
unified control. the director general
~ believe that even under the handi-
caps OF war conditions sufficient
showing has been made to indicate that
desirable as permanent peace meas
ures, Yet it is clear that the general
Dps ass his had had ao an ps5 lRa G
In view of the. far-reaching i'm
road question which may be @ adopted,
:he public is entitled to have, before
the present Federal control shall be
peace conditions of the advantages to
be derived from these reforms.
1T will be impossible to review the
results Of even one year of Federal
the spring Of 1920. and IL will then be
too late for Congress to legislate be.
fore the end Of the twenty one months
provided in the present law for govern,
msnt men control; Operations under peace
fSSndl.ions tSn tIont with a tenure SO short as
constitute fair test"
WOULD INEVITABLY
DISTURB .'MORALIs"
Reasons for this, he explained, would
bloyees' morale the difiicuity OF
carrying out an extensive program of
improvements and of forcing on rail-
indeed" he added. the difficulties
vnn,bs With operation during the twenty one
InSn'hs i on no, per,od a VIII be, so serious that
be fairly asked TO encounter them. II
seems to me that any one who wishes
as to whai lnd s aispSasstonate pa study made
tion and as to the extent to which the
REFORMS have mentioned are in the
TO the way in which those reforms can
best be accomplished-if in the interest
Gt in she american public-must be anx-
Federal control after the war under
CONDITIONS calculated to make for tran
1n1ititS gu ana single mindedness upon the
tion; ! do not mean that this would
De desired In order to accomplish gov
eminent ownership"
Another reason for a ]onper ,as+
period, said the director general is The
aadyisaGiiity ao.r,a,3d of having adequate in
propsrtS r9rtiSn now ON yalration Is,n Of railroad
interstate Commerce Commission, to
guide congress in Legislation proyid
road problem. ''e '"'i-
THINKS RATES MAY
HE MATERIALLY LOWERED
referring to the Increase in freight
aha Mr RasGang RPasssenger rates six months ago.
1N3oO oAtu action
nave been necessary even under nri.
Hate management TO prevelt serions
losses. and said 1t should be possih1e
TO !oWcr rates materially this year
Uniformity OF rates and eGuifahIo
oiiSstrioution of the rate burden over
Al railroads. regardless OF the fact
mat some are unusually prosperous and
others poverty stricken, is possible nniu
under unified control, Nh. McAdoo urwe5
as anotner argument for the five-year
Great improvements and. extensions
Should be made In terminal faciIities
oy enlargement and consolidation. said
the director-general. This, he said
provides the greatest Opportunity for
reducing railroad costs and promotinn
public convenience In the future.
Mr., McAdoo estimated the goyern-
menrs loss In operating railroads his
year mt 36. zoe, 900. This represenis
the difference between the amount
guaranteed to the roads as rental and
the sums credited to the Eoyernmemt
In railroad income. II the 'iiiRhcr .ratas
had been in effect the entire year he
estimated the government would have
mad u .surplus of gs10 % 10, 900, and lii
1919, with existing wages, operating
costs and Mtrafis Solnine remalning
A Goa ttfusdg on second FxEs.5
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