New-York tribune., 1919-01-25
McAdOO Predicts
Return to Normal
Railroad Service
Former Director General
Says Many Pre-War Facili-
ties Will BE Restored; New
Rate Making Machinery

WASHINGTON, Jan. 24.-Thc i'm
pairment Of railroad service in this
country by the war has been relieved
by the cessation Of hostiitics, former
Director General McAdoo asserts in
the public service and accounting sec
ton of his annual report, just made
public
"Whilc the government will make
heavy demands upon the railroads
for some months to come the
the unified system says, "and while
existing prices of materials and Ia
bor may not justify the undertake
ing of improvements upon a large
scale, still the war pressure is being
relieved and conditions will gradually
become more and more normal. From
now on the point Of view will be diff
ferent. The effort must be to ascertain
what service the public requires and
TO render that service when possible
This does not mean that every pre-
war time facility should be revived
Competition had created many situa-
tions which were cXtravagant and un-
justifiable. Service of that kind is gem
orally preference to the individual
enjoying it which is paid for by the
general public, which does not enjoy it.
But all the facilities which the public
can properly ask for will be supplied
as speedily as possible"
The report describes the machinery
which has been built UP for dctermin-
ing changes in rates. at has been
felt it says, "by this administration
that any change in rates, especially
any change which works an alteration
in the relationship Of rates, should
when possible be submitted to the
parties affected before being put into
effect so that the side of the shipper
or the public might be presented. To
secure this result, it was decided to
create traffic committees which might
consider all rate changes and upon
which the public should have repre-
sentation, and as a result such com
mlttees have been established at vari-
GUS points throughout the country. so
located as to be conveniently acces-
slble to the shipping public. A majority
OF those serving on these committees
are drawn from the railroad service
but there is in every case at least one
representative Of the public, who has,
IN all respects. coordinate authority
with his associates.
I'm the past thousands of rate
changes have been made each month
which were worse than unnecessary.
These multitudinous changes produced
confusion and discrimination. What
the shipping public desires above
everything else is stability of rates.
1t Is also highly desirable that these
rates be published in some intelligiblc
form, so as to be capable of interprc-
tatlon by the ordinary shipper. When
no rate is changed except for some
substantial reason the number of such
changes will be enormously reduced
and 1T will become possible to publish
tariffs IN much more satisfactory
way than at present"
The report IN analyzing the large
accounting tasks arising from the old
system Of private management makes
the assertion that at is plain that if
all the railroads were owned and op-
Grated by single corporation or by
the government ali these accounting
costs would disappear. Under the Rail
road Administration some of these
costs have been eliminated and others
TO very great extent curtailed. Car
hire has been eliminated. The account
ing Tor car repairs has been much
slmplified as between lines under GOV
eminent control. Joint facility OK
Pcnoeo nave Deen ulStrlDuted upon an
arbitrary basis, thereby reducing to
minimum accounting on this account.
Many millions Of dollars of accounting
expenses have been saved in this man
ner and STILL on the whole, that saw
ing has been nothing like what it might
be and would be under permanent uni
fed operation"
The exDirector General announced
further that he had entered into con-
tracts involving an expenditure of more
than $500,0000OO for equipment. In
case of cars, he explains, the material
is paid for by the government.