Pine Bluff daily graphic., 1919-01-04

l Another reason for longer test period, said the Director General, IS the advisibility of having adequate ln- formation on valuation of railroad property now being gathered by the Interstate Commerce Commission 10 guide congress in legislation provid- ing a permanent solution of the rail- road problem
 Referring to the increase in freight and passenger rates, six months ago, Mir. McAdoo said that similar action would have been necessary even un- der private management to prevent serious losses. and said it should be possible to lower rates materially this year.
 Uniformity of rates and equitable 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, Mir. McAdoo urged as another argument for the five year continuance plan.
 Terminal Improvement Necessary.
 Great improvements and extensions should be made in termina. facilities by enlargement and construction said the director. This he said, provides the greatest opportunity for reducing railroad costs and promoting puphc convenience in the future.
 Mir. sMcAdoo estimated the govern ment's Moss in operating railroads this year at $136, 100000. This represents the difference between the amount guaranteed to the roads as rental ana the sums credited to the government in railroad income If the higher rates had been in effect the entire year he estimated the government would have made surplus of $l0O,o0o.ooi and in 1919, with existing wages operating costs and traffic volume re- maining substantially the same as in last year, the government should make surplus of *100,O0O,Ooo.
 "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 the same time the best possible service l con fidently believe that it will be possible during the year 1919, or certainly at the end of the year 1913, to effect considerable reduction in rates unless the traffic for 1919 should be much less than it was in the year 1918"
 Wage advances to railroad employees last year added between U,o0o,o0o and $7OO, 100000 to the payrolls, MT. McAdoo testified In addition the coal bill was $140,000,000 higher for the ten months of 1918 ending November 1 than the same period of 1917, and the cost of cross ties and lumber ln- creased $65 100000.
 Many economies brought aoout uh- der unified management, such as re- routing common use of terminals anu equipment heavier loading and ell mination of useless competition, MT McAloo explained, will not be re- f,ected until this year. Nevertheless, he said. reports from five Of the seN- on operating regions show that cn a rroup of selected principal items ol economy saings totalling $So,57h ooU have been effected.
 Many of the changes of railroao operation inauguarted during last year." tho director general testnleu "should prove of permanent value ant should continue, if possible, regard less of what form of control ls ueelo ed upon for the railroads
 The retiring director general toie the Senators how the government taking over the railroads the flrst o last year at a time when they were threatened with physical and financla breakdown had righted conditions gradually, moved 6,496,000 troops hauled great quantities of food at critical time ill February when the very success of the war depended or the food situation and had hauled S', 0SS. .OOO more tons of bituminous coa during the 10 months ending October 3l, than in the same period Of tut year before.
 "Whatever inconvenience may nave resulted to civilian travellers, he as serted, are due entirely to war condl tions and are in no way related to tht fact that the railroads were under goernment control.
 He emphasized that waterways should be used more extensively in co ordination with railroads. but express cd doubt whether this would be don' if the roads went back to competitive private management.
 Washington, Jan. 3,--RaiiroaG under Federal control received ad vances totalling S6S9 u5', ',I39. iron the railroad administration durin| the first year of government orera tion, ending December 3l, said al
 announcement tonight by lfrecto EonaraI ,NrAuQo Of llltS sum
 $4a3, io4 ,Sl0 came from the' seeo,oeo,
 coo revolving fund voted hy con
 gress. The remainder S235.5 .9i9 came from surplus operating re ceipts of certain railroads. and fson receipts from the express compan
 ies,
 The total amount deposited Wit
 the diretor general up 10 Deeembe
 3t, from surplas receipts of all rail : roads, aud transportation comnanie