Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1919-01-10
ASKS Time TO
TEST Rail PLAN
MokdoO Urges Extension of Fed
eraI Control Through
Peace Period.
SEES LOWER FREIGHT RATES
Loss in Operating Roads Is $t36,ooo,-
ooo-Hioh Rates Throughout Year
Would Have Left Surplus
Of 500, 100000.


Washington, Jan. 6.-Accomplish-
ments of railroads under federal con-
troll in the last twelve months and ar
guments for a tive-year continuance of
government operation to provide fair
test of unified direction were recited
by Director General McAdoo, testifying
before the senate interstate commerce
committee, which took up considera-
ton of his recommendation for exten-
sion of control until 1924.
After citing reforms effected under
unified control the director general
said:
Il believe that under the handicaps
of war conditions a sufficient showing
has been made to indicate that all the
reforms 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
lfar-reachlng 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 ad-
vantage to be derived from these re-
forms.
Operations under peace conditions
with tenure so short as the twenty
one months cannot possibly constitute
a 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
advisability 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.
Mr.. McAdoo estimated the govern
ment's loss in operating railroads thi:
year at $136.0OO,O00. This represent!
the difference between the amour
guaranteed to the roads as rental ant
The sums credited to the government
IN railroad income. If the higher rate.
had been In effect the entire year h
estimated the government would hav,
made a surplus Of $100000,O00 and il
1910, 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,0OO,O0O. e
''Since the object of the government
should be at all times to operate tn
railroads not for profit. but at cost,
he added, "and to render at the sam
time the best possible service, 1 con
fidently believe that 1t will be possibl
during the year 1919, or certainly a
the end of the year 1919, to effect
considerable reduction in. rates unles
the traffic Of 1919 should be much les
than It was in the year 1918"
Wage advances to railroad employee
last year added between S6O0OOO,OO
and $7OO,OOOOOO to the pay rolls.
Many economies brought about vi
der unified management, Mr.. Meade
said, win not be reflected until thl
year. aff SECS
The retiring director general toll
the senator's how the government, tai
ing over the railroad the first Of las
year at a time when they were threa
ened with physical and financial breaI
down, had righted conditions gradua
ly. moved 6,496,0O0 troops, haule
great quantities of food at a critic,
time in February when the very su
cess Of the war depended on the foo
situation. and had hauled 37,0S3.0C
more tons Of bituminous coal durin
the ten months ending October
than In the same period of the ye,
before.