The Sentinel=record., 1919-01-04

.hey wanted done with tae roads2'
 aakea scnat1r Kellogg.
 Decidedly not" was Mr. McAdoo's
 reply
 Senator pomerene asked if admin
 istra;ioa lawyers had considered
 whether congress has power to resu-
 late maraeemcnt of railroads in peace
 times. Mir NcAdoo said he believed congress had power to take over the
 arrangements Of railroads for ninety
 nine years if wanted.
 Al hearings next week. A. 7 Thom,
 counsel of the association of railway executives. will be heard in opposi-
 tion to the plan, and state committees
 will be given opportunities Waltes
 D- Glennand other railway officials
 may be heard tomorrow,
 "I believe that rnder the har,. caps of war conditions a sufficient show
 ing has been made to indicate that all the reforms l have mentioned are de sirable as permanent peace measures. Yet it is clear that the general pub- lie has not had an opportunity to ap. preciate ihis and to weigh the real value of what has been accomplished. III view Of the far reaching impoT- tance of any solution of the railroad question which may bc adopted the public is entitled to have, before the present federal control shall be ter minated a reasonably fair test under peace conditions of the advantages to be derived from these reforms.
 "lt will be impossible to review the results Of even one year Of federal control under peace conditions until the spring of 1920 and it will be then too late fer congress to legislate be. fore the end of the twenty-one months period after the declaration of peace, provided in the present law for gov ernment control. Operations under peace conditions with tenure so short az twentyone months cannot possibly constitute a fair test"
 Reasons for this, Ee explained would be the inevitable disturbance to employees morals, the difficulty cf carrying out an extensive program of Improvements and of forcing on rail road companies necessary eXpcndi- tures
 "ndeed'.' he added "the dlfficul. ties with operation durlng the twenty one months period will be so serious that l do not see how the government can be fairly asked to encounter them II seems to me that any one who wishes a fair and disgassionata study made as to what is the hest ultimate solution and as 10 the extent to which the reforms l have mentioned are in the interest of tho American pdbic and as to the way in which these re- forms can best be accomplGhed-if in the interest of the American public must be anxious to have d req son able period of federal control after the war under conditions calculated to make for tranquility and single upon the par. of tho fed eral railroad organization I do not mean that this would De desired in order 10 accomplish tho government 
 Another reascn for a longer test neriod said the director general. is the advisability Of having adequate information on valuation of railroad 1ro9erty now being gathered by the interstate commerce commission. to guide congress in legislation provid- pg a permanent solution of the rail road problem
 Referring to the increase in freight md passenser rates, six months ago, 1 Mr. MeAdoo said that similar action would have been necessary even un- Ter private management to prevent ierious losses, and said it should be possible to lower rates materially his year
 Uniformity of rates and equitable | distribution of the rate burden over III railroads regardless of the fact hat some are unusually prosperous md others poverty stricken, is pos .ible only under unified control Mir dcAdoo urged as another argument or the five year continuance plan.
 Great Improvements and extensions | hould te made in terminal facilities l y enlargement and construction. aid the director. This, he said, pro 'idos tho greatest opportunity for re l iucing railroad costs and promoting l 'ublie convenience in the future.
 Mir. McAdoo estimated the govern 1 nents loss in operating the railroads | his year at $136 000EGO. This repre- | ents the difference between the | mount aranjeed to the roads as ental and the sums credited to the government in railroad income. If