The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-04

Deiending the arbitrary rate increases
y, last summer Mr.. McAdoo protested
mat such summary action would not
DC necessary In time of peace.
under peace conditions the new rate 9
would not be inaugurated until after a
more careful review" he declared. The
snort line roads would be included in
the control. he said.
= senator Kellogg (Minnesota) cues
TONED Mr.. McAdoo at some length, en-
phasizing the fact that Of ali plans
suggested the five year extension pro-
posal contemplated only furtn. expert
mentation with a plan which had been
crieu ana at the end of that period
could promise Congress no light on the
wisdom Of other proposals
Several Oppose Five Year Plan.
When the committee adjourned sew
eral senators expressed the desire to
question Mr.. McAdoo further. He will
resume the stand tomorrow. Questions
to-day by Senators Cummins, Watson
tlndiana). Poindexter (Washington)
and kellogg, Republicans, and Pom
| creme (Ohio) and Underwood Gala
bama). Democrats. clearly showed op-
position to the Ave year plan. while
Chairman Smiths opinion was not dis
closed. Senators Townsend (Michigan)
and LaFollette (wisconsin), Republi-
| cans. and Gore (Oklahoma). Democrat.
contributed nothing to the questioning.
although Senator Townsend announced
| that he will ask some questions to-
morrow.
| At the morning session Mr.. McAdoo
read prepared statement of $4,000
| words, reviewing the accomplishments Of
his administration for the last twelve
| months. which was in part as follows !:
IT believe that even under the handi-
caps Of war conditions a sufficient
showing has been made to indicate that
| all the reforms I have mentioned are
| desirable as permanent peace measures.
Yet 1t 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 solution
Of the railroad question which may be
adopted. the public Is entitled to have,
before the present Federal control shall
be terminated. a reasonably fair test
under peace conditions OF the advan-
| tages to be derived from these reforms.
short Term Test Not Fair.
at will be impossible to review the
results OF even one year Of Federal con-
troll under peace conditions until the
spring OF 1920. and It will then be too
late for Congress to legislate before the
lend of the twenty-one months period
after the declaration of peace provided
in the present law for Government con-
troll. Operations under peace conditions
with tenure so short as the twenty
one months cannot possibly constitute a
fair test"
Another reason for longer test
period, said the Director-General,i IS the
advisability of having adequate informa-
ton on valuation of railroad property
now being gathered by the Interstate
Commerce Commission TO guide Con-
gress in legislation providing perma-
nent solution Of the railroad problem
Great improvements and extensions
should be made in terminal facilities by
enlargement and consolidation. said the
Director-General. This, he said. provides
the greatest opportunity for reducing
railroad costs and promoting PUBLIC con-
venience in the future.
Mr.. McAdoo estimated the Govern
ment's loss in operating railroads this
year at 1886. 600, 900 This represents the
difference between the amount guaran-
teed to the roads as rental and the sums
credited to the Government in railroad
income. II the higher rates had been ir
! effect the entire year he estimated the
Government would have made a surplus
OF 500. 1000 900.
Operate Roads Mt Cost.
! "Since the object of the Government
should be at all times 60 operate the rail-
roads not for profit but at cost" ht
J added. land to render at the same time
the best possible service, | Conhdentl,
believe that 1t will be possible durins
3 the year 1919 or certainly ut the enc
! of the year 1919 to effect a considerable
= reduction in rates unless the traffic 70
l. | the year 1918"
:, Wage advances TO railroad employee
y last year added between $500. 900, 90
s and s70O 900. 900 10 the payrolls, Nj
= McAdoo testified. In addition the Goa
y bill was $4,000, 900 higher for the tel
: months of 1918 ending November tina,
Z in the same period OF 1917. and the cos
= of cross ties and lumber increased SOS,
100000.
Many of the changes in railroad op
e Grafton inaugurated during last year.
{ the ctor-General testified, 'shoul
8 grove OF permanent value and shout
continue. II possible, regardless of wha
p form of control is decided upon for III
r railroads. Such reforms include:
q maintenance OF the permit syster
e so as to control the traffic at Its source
maintenance of heavy leads for cars
o pooling OF repair shops. elimination O
mails, maintenance of the sailing da
plan, consolidation of ticket offices, util
ization OF universal mileage tickets. uni
form freight classification. maintenance
!. Of common time tables between import
. ant points. maintenance OF high dc
murrage rates and uniform rules. estat
', lishment OF through way bill freigt
u from point of origin TO destination an
= utilization of water routes for the relic
b. OF crowded rail lines
- The retiring Director-General told III
. Senators how the Government takin
. over the railroads the first Cf last yea
:, at IA time when they We're threatene
with physical and financial breakdow
- had righted conditions gradually, move
"a 6.4sG. 900 troops. hauled great quantitie
a., OF food at a critical time IN Februar
~ when the very success OF .he war dc
% pended on the food situation.
~ The Director-General went at lengt
into the necessity for pooling termin;
= facilities in scores of cities, referrin
, particularly to Cincinnati, New York an
"a Chicago. This programme cannot /
. carried out. however he said, except VI
der some form of unified control eXtcnc
n ing over a number of years.
=, The Cape Cod canal should continu
under Federal control, he said.
-