Republican farmer., 1919-01-10

Washington. Jan. 3-Accom- pllshments of railroads under Federal control in the last 12 m0nthC and arguments for a five-year continuance of gov ernment operation to provide a fair test of unified direction were recited today by Director General McAdoo, testifyina before the Senate Interstate Commerce Committee, which took up consideration of his recommendation for extension of control to 1927.
 T do not mean that this would be desirable in order to accomplish gov ernment ownership"
 Referring to the increase in freight and passenger rates six months ago, MT. NcAdoo said tha. similar action would have been ne cessary even under private manage ment to prevent serious losses, and said it 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, MT. McAdoo urged as another argument for the five-year continuance plan. Great improve ments and extensions should be made in terminal facilities by enlargement and consolidation, he said. This. he said, provides the greatest opportun- ity for reducing railroad costs and promoting public convenience in the future
 MT. McAdoo estimated the govern ments loss in operating railroads this year at $138,0O0, ,0o0 This represents the difference between the amount guaranteed to the roads as rental and the sums credited to the government in railroad income. Ii the higher rates had been in effect the entire year he estimated .he gov ernment would have made a surplus i of $100, 100000, and in 1919, with existing wages, operating costs anG traffic volume remaining substan. { tially the same as in last year, the ! government should make a surplus O . 0,000,000. He also predicted tha ! a considerable reduction in rate. i could be effected in 1919.
 Wage increases to railroad em ployes last year added between $500
 100000 and s7OO,OO0,OOo to the pay rolls. MT. McAdoo testified. In addf tion the coal bill was $140,OOO ,OOl higher for the ten months of 1918 l ending November l, than in the sam,
 period If 1917, and the cost of eros l ties and lumber increased S65,OO0. I 900.
 i Many economies brought about b, change in manageme mt, such as re ! routing, common use of terminals ant { equipment, heavier loading and elim
 nation of useless competition, MT McSdoo explained, will not be re i fected until this year. Nevertheless
 he said, reports from five of the sev 6 operating regions show that on group of selected principal items o
 economy, savings totalling $S5,
 900 have been effected.
 Many of the changes in railroa operation inaugurated during las
 year." the director general testified
 should prove of permanent valu
 and should continue, if possible, re gardless of what form of control i
 decided upon for the railroads. Sue
 reforms include: Maintenance c
 the permit system so as to contrc
 the traffic at it's source, maintenanc of heavy loads for cars: pooling c ! repair shops; elimination of ciI
 cuitous routes; unifcation of ter l minals; maintenance of the Sailin Day plan; consolidation of ticket ot fees; utilization of universal mileag
 tickets; standardization of equiE
 ment; maintenance of the unifor1
 freight classification introduced by tn
 railroad administration; maintenanc
 of common time tables between in
 portant points; maintenance of h1g
 demurrage rates and uniform rule!
 establishment of through way-bi < freight from point of origin to de: tinaion; elimination of the old prac
 tice of paying in mileage or pc
 diem rental for the use of freight ( 1 passenger cars of one carrier by ar . other; simplifcation of the old prac tice of apportioning inter-line pas! . enger revenue; and utilization ( . water routes for the relief of croWc . ed rail lines"
 . Competition and self-interest of 1T k dividual roads would prevent the cal . rying out Of many of these reform ]. under the old system of private mar l. agement, declared MT. McAdoo. |. Mir. McAdoo read a long prepare l. statement, constituting comprehen !. sive review of conditions under Fed i, eral management. After citing re l, forms effected under unified contro :. he said:
 |. T believe that even under the han :. dtcaps of war conditions sufffcier T. showing has been made to indicat 2 that all the reforms I have mentione T are desirable as permanent peaC r measures. # It seems to m * that anyone who wishes a fair an x dispassionate study made as to whe x is the best ultimate solution, and T * to the extent to which the reforms x have mentioned are in the interest ( x the American public, must be anxior x to have reasonable period Of Fec % eral control after the war under COT ? ditions calculated to make for trar ' quility and single -mindedness upo \ the part of the Federal railroad oi