Bisbee daily review., 1919-01-04
Director General Is Chilled by KelIog and Cunmins on Question of Turning Over Railroads to Their Owners Give Roads Back Immediately or Keep Them Five Years Is Advice of Chief; Hopes for Best in Roads Future
Rv Review Leased Wirel


 WASHINGTON, Jan. 3.-Director General McAdoo, testifying today be- fore the senate interstate commerce committee at the opening of hearings on the future policy toward railroads, was subjected to a fire of questions by Senator Cummins of Iowa and Sen ator Kellogg of Minnesota, republi- cans, intended to develop why MT. Me Adoo believes it advisable to turn back the roads to private management as soon as possible if congress does not extend the period of federal con- trol for five years
 Both senators argued by implication for retention by the government of the railroads for the full q months after the declaration of peace. author ized by the existing law. and legis- lation meanwhile by congress to pro- vide a permanent solution of the rail road problem.
 Mr. McAdoo gave three reasons why he does not believe in retaining con- trol Of the roads for 21 months:
 That railroad companies already are challenging the authority of the rail road administration to require them to purchase certain equipment, and oth- erwise are not giving full measure of cooperation.
 That some state railroad commis- sions threaten to dispute the right of the federal management to dictate in- trastate rates in normal peace times, and,
 That the uncertainty of the future would cause a ferment within railroad organizations particularly destructive to the morale of employees and offic- CTS.
 To Senator Cummins' comment that he thought it 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," and that unless the roads are given more time to prepare, it will be little short of disastrous" MT. McAdoo re- piled:
 .I cannot foresee such a situation at all unless the state commissions, and the interstate commerce commis- sion, ignoring the necessity for main taining wages and the rights of just compensation, would reduce the rates unjustly. My idea on this railroad problem is to stabilize conditions for five years, to play safe, and try uni fled management for that long,"
 MT. McAdOO declared that his in- clination had always been against public ownership" and in tavor of some sort of private ownership with strong unified control
 Mir McAdoo said he thought the power to initiate rates should be re- served to the president and that short lines should be included in the nation al system.
 Senator Kellogg asked whether the railroads. if turned back to private management without giving congress time to enact remedial legislation would not face bankruptcy as a result of the. resumption of the operation of state laws and regulations providing low interest rates.
 MT. McAdoO replied that he did not believe state agencies would force down rates without considering fully the new financial obligations of the roads.
 Don't you think that with the rail roads under government management for five years, they would be at the mercy of the officials who run 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 railroads?" asked Senator Kellogg.
 Decidedly not" was Mir. McAdOO's reply. He also added, that he believed congress had power to take control Of railroads for 99 years if it wished.
 Senator Kellogg will resume his ex- animation of the director general to- morrow morning.
 MT. McAdoo disclosed to the com mittee that the aggregate government compensation to all roads for 1918 is calculated at a little less than S900.- 100000; that this is about S136,000, 900
 0Ccutnued or Page TWo)