Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-01-03
M'ADOO JUSTIFIES
THE GOVERNMENT
CONTROLOF RAILS
Tells Senate Commerce Com
mittee the Reforms Made
Should Be Permanent
BY associated Press

16iltidl MCkAuOOt lCotlly lis DChCiO Y
the Senate Interstate Commerce
Committee. which took up consider
alton of his recommendation for ex-
tension of control to 1924.
Mr.. McAdoo read long prepared
statement, constituting a compre-
hensive review of conditions under
federal mana fement. After citing
reforms effected under unified con-
troll, he said:
Points to Rail Reforms
II believe that even under, the
handicaps of war conditions suf-
flcient showing has been made to
indicate that all the reforms 1 have
mentioned are desirable as perma-
nent peace measures. 1t seems
to me that anyone who wishes fair
and dispassionate study made as to
what is the best ultimate solution
and as to the extent to which the
reforms l have mentioned are in the
Interest of the American public, must
be anxious to havea reasonable per-
iod of federal control after the war
under conditions calculated to make
for tranquility and single minded
ness upon the part of the federal
railroad organization. / do not mean
that this would be desirable in or
der to accomplish government own
crship."
Predicts Lower Rates
Referring tothe increase in freight
and passenger rates six months ago,
Mr.. McAdoo said that similar action
would have been necessary eevn un-
der private management to prevent
serious losses, and said 1t should be
possible to lower rates materially
this year.
Uniformity of rates and equitable
distribution of the rate burden over
all railroads is possible only under
unified control, Mr.. McAdoo urged
as another argument for the five
| year continuance plan.
Great improvements and extern
sions should be made in terminal
facilities by enlargement and con-
solidation, he said. This, he said.
: provides the greatest opportunity
| for reducing railroad costs and pro-
noting public convenience in the fu-
| ture.
Loss of S136,OOO,OOO
Mr.. McAdoo estimated the gov
ernment's loss in operating railroads
this year at $136, 100000. This rep
/ resents 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 gov
| ernment would have made a surplus
of $10,000,000, and in 1919. with ex-
listing wages, operating costs and
traffic volume remaining substan-
TALLY the same as in last year. the
government should make a surplus
of 800, 100000.
He also predicted thata consider
able reduction in rates could be eff
fected in 1919.
Wage increases to railroad en-
ployes last, year added between
$500, 100000 and $7O0,0O0,0O0 to the
payrolls, Mr.. McAdoo testified. In
addition the coal bill was s140,000,-
600 higher for the ten months of
1918 ending November !, than in the
same period of 1917, and the cost
of crossties and lumber increased
S65, 900, 900.
Many economies brought about
under unified management, such as
rerouting, common use of terminals
and equipment, heavier loading and
elimination of useless competition,
Mr.. McAdoo explained, will not be
reflected until this year. Neverthe-
less, he said, reports from five of the
seven operating regions show that
on a group of selected principal
items of economy, savings totaling
$S5, 900 have been effected.
Changes Should BE Permanent
MANY of the changes in railroad
i operation inaugurated during last
year." the director general testified,
should prove of permanent value
and should continue, if possible, re-
gardless of what form of control is
decided upon for the railroads. Such
reforms include maintenance of the
permitsystem so as to control the
traffic at it's source, maintenance of
heavy loads for cars; pooling of re-
pair shops; elimination of circuitous
routes; unification of terminals;
maintenance of the sailing day plan:
consolidation of ticket offices; utili-
zation of universal mileage tickets;
standardization of equipment: MAIN
tenance of the uniform freight class
ification introduced by the railroad
administration; maintainance of
common timetables between import
an tpoints; maintenance of high de-
murrage rates and uniform rates.
establishment of through way bill
freight from point of origin to desti-
nation; elimination of the old prac-
tice of paying in mileage or per diem
rental for the use of freight or pas
senger cars of one carrier by anoth-
er; simplification of the old prac-
tice of apportioning interline pas
senger revenues; and utilization of
water routes for the relief of crowd
ed rail lines"
| Competition and self-interest of
individual roads would prevent the
carrying out of many of these re-
forms under the old system of pri-
vate management, declared Mr.. Nc
Adoo. ....... ...
The retiring director general told
the Senators how the government
taking over the railroads the first OF
last year at q time when they were
threatened with physical and finan-
cial breakdown had righted condi-
tions gradually, moved 6,496,0
troops, hauled great quantities OF
food at critical time in February
when the very success of the wal
depended on the food situation and
hauled 37,0S3,000 more tons of btu
minous coal during the ten months
ending October 81 than in the same
period of the year before.
Inconvenience Due to War
Whatever inconvenience may
have resulted to civilian travellers,
he asserted. ARE due entirely to war
conditions and are in no way related
to the fact thatthe railroads were
under government control"
The director general went al
terminal facilities in scores of cities
| mi. u \