Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1919-01-10
FIVE YEARS RAIL
CONTROL OR QUIT
McAdoo Asks More Time to Test
the Plan.
LOWER FREIGHT RATES SEEN
Urges Extension Of Federal Controi
Through Peace Period-High
Rates Will Leave Surplus in
Normal Times, He Says.

Washington, Jan. 4.-Accomplish-
ments of railroads under federal con-
troll in the last twelve months and ar
guments for a five-year continuance or
government operation to provide falr
test of unified direction were recitcd
by Director General McAdoo, testifying
before the senate interstate commerce
committee, which took up cOnsidera-
ton of his recommendation for extern
sion of control until 1924.
After citing reforms effected under
unified control the director general
| said:
II believe that under the handicaps
of war conditions q sufficient showing
| has been made to indicate that all the
reforms have mentioned are desirable
as permanent peace measures. Yet II
is clear that the general public has not
had an opportunity to appreciate this
and to weigh the real value of what
has been accomplished. In view OF the
far-reaching Importance of any solu-
ton of the railroad question which may
be adopted the public is entitled to
have, before the present federal control
shall be terminated, reasonably fair
test under peace conditions of the adj
vantage to be derived from these re-
FORMS
| Short Tenure Not Just Test.
Operations under peace conditions
with a tenure so short as the twenty
one months cannot possibly constitute
| q fair test"
Reasons for this, he explained, would
| be the inevitable disturbance to EN-
ployees' morale, the difficulty Of carry
ing out an extensive program OF i'm
provements and of forcing on railroad
companies necessary expenditures.
| Another reason for longer test Pc
| Rod, said the director general, is the
| ACCESSIBILITY of having adequate infor-
nation on valuation of railroad prop
erty, now being gathered by the inter-
| state commerce commission to guide
congress in legislation providing
| permanent solution Of the railroad
| problem.
| Referring to the increase In freight
| and passenger rates six months ago,
Mr.. McAdoo said that similar action
would have been necessary even under
| private management to prevent serious
losses, and said it should be possible
| to lower rates materially this year.
Expects Surplus This Year.
Mr.. McAdoo estimated the govern
ment's loss in operating railroads this
year at $136.OOO,000. This represents
| the difference between the amount
| guaranteed to the roads as rental and
| 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 a surplus of $10O,000,O00 and in
/ 1919, with existing wages, operating
costs and traffic volume remaining
| substantially the same as in last year,
| the government should make a sur
| plus of $1OO,OOO,O0O.
"Since the object Of the government
| railroads not for profit, but at cost"
| he added, land to render at the same
| time the best possible service, / con-
| fidently believe that it will be possible
| during the year 1919, or certainly at
| the end of the year 1919, to effect
considerable reduction in rates unless
| the traffic of 1919 should be much less
than it was in the year 1918"
| WAGE Advances Added $685. 900.
Wage advances to railroad employees
last year added between $6O0,0O0,0OO
| and $7OO,OOO,O00 to the pay rolls, Mr..
| McAdoo testified.
Many economies brought about un-
der unified management, Mr.. McAdoo
said, will not be reflected until this
year.
MANY of the changes in railroad OPP
| hration inaugurated last year," the di-
rector general testified. SHOULD prove
Of permanent value and should con-
| tinue, if possible, regardless of what
form of control is decided upon for
| the railroads.
Hauled Troops, Food, Coal.
The retiring director general told
| the senators how the government, TAX
| ing over the railroad the first of last
| year at time when they were threat
ened with physical and financial break
| down, had righted conditions gradual
ly, moved 6.496,OO0 troops. hauled
great quantities of food at a critical
| time in February when the very sue
cess of the war depended on the food
situation, and had hauled 37,OS3,OO0
more tons of bituminous coal during
! the ten months ending October 81,
than in the same period of the year
| before.
Bank Bandits Get $4,350