Pine Bluff daily graphic., 1919-01-04
DIRECTOR ADVOCATES
 EXTENSION
Of Government Control of Railroads for Five Years tc Give Fair Test;.

Washington, Jan. --Dilactor General McAGoo, testlfylng ;Jday be- fore the Senate Interstate Con- merce Commission at the opening of the hearings on the future policy toward railroads, was subjected to a ire of questions by Senator Cum mins, of Iowa, and Senator Kellogg, Of Minnesota, Republicans, intended to develop why MT. McAdoo 'believ- es it advisable to turn pack the roads to private management as soon as possible. if congress does noe extend the period of fedora. control for five years.
 Both senators argued by imElca- tion for retention by .he government of the railroads for the full T months after the declaration of peace authorized by the existing law and legislation meanwhile 3y con- gross to provide per,nanen. solu- tion of the railroad problem.
 Mr. McAdoo gave three roasons why he does not believe in retaining control of the railroeds for 21 months:
 That railroad companies already are challenging the authority of the railroad administration to require time to purchase certain equipment and otherwise are not giving full measure of cooperation. That some state railroad commis- sions threaten to dispute the right of the federal management to dic- tate interstate rates in normal peace times. and,
 n That the uncertainty of the future would cause a fernent withsl rail- road organizations particularly de- structive to morale of employees and officers.
 To Senator Cummins' comment, that he thought it little less than crime to turn back the roads at an early date with the standards of wages, material costs and rails as they are land that unless the roads are given more time co r~epare it will he little short of disastrous MT. McAdoo replied:
 "I cannot forsee such a situation at all unless the state commisslor3 and the interstate commerce commits sion, ignoring the necessity for main- taining wages and the rights Of just t''iNil cuEdIlOI, WOulu lcQuCc JAC rates unjustly. My idea on the rail- road problem is to stabilize cOndi- ticns for five years, to play safe, and try out unified management for that long. Then we will know better how to deal with the railroad question"
 Mir. McAdoo declared that his in- cynations, had always been against public ownership and ill fa6Dr of some sort of private ownership with strong unified control" and that he was not in a position to say whether government operation. private by railroads merged nito regional mon- opolies, or diversified operation by each road under government super vision, would be preferable.
 "It is to test these problems un- der normal peace conditions that | want five year extension of gov- ernment management" he explained.
 MT. McAdoo said he thought the present principle of operation should be continued for five years with power to initiate rates reserved to the president and that short lines should be included in the national | system.
 Senator Kellogg asked whether the ] railroads, if turned back to private management without giving com gross time to enact remedial legis- lation possibly permitting them to unify their, properties and to pool earnings, would not face bankrupr- cy as a result of the resumption of the operation of state laws and reg ulations providing low intrastate rates.
 MT. McAdoo replied that he did mot believe state agencies would ] force down rates without consider ! ing fully the new financial obliga- tions of the roads.
 Don't you think that with the railroads under government manage ment for five years, they would be i at the mercy of the officials who ran them at the end of that time, and that the people of the United States would not have real chance to decide what they wanted done with the roads? ?" asked Senator Kel-. logg.
 Decidedly not was MT. McAdoo's reply.
 Senator Pomerane asked if rail- road administration lawyers had considered whether congress had ! power to legislate government man. 1 agement of railroads for five years i in peace times. MT. McAdoo said he believed congress had power to take 1 control of railroads for 99 years II l it wished.
 Senator Kellog will resume his ex- animation of the director general to- morrow morning.
 At hearings next week. A. P. Thom, counsel of the Association of Railway executives. will be heard in opposition to the five year extension { plan, and representatives q shippers tronr,nnetr o,, TIT ioSta,