The Birmingham age-herald., 1919-01-04

Both senators argued by implication for retention by the government of the rail- roads for the full 2l months after the 1 declaration of peace, authorized by the existing law, and legislation meanwhile by Congressyt6 provide pe.manetit sold ton of the railroad problem.
 GIVES THREE REASONS Mir. McAdoo gave three reasons why he does not believe in retaining control of the roads for the 21 months:
 That railroad companies already are challenging the authority of the rail- road administration to require them to purchase certain equipment, and other- wise are not giving a full measure of CO., operation.
 That some state railroad commissions threaten to dispute the federal manage ment to dictate intrastate rates in normal peace times. and
 That the uncertainty of the future would cause a ferment within railroad orga nizations particularly destructive to morale of employees and officers. l To Senator Cummins' comment that he thought it little less than a crime 1 10 turn Ddck tIlt IOduS at stf tdi iS oANSs with the standards of wages, material costs and rates as they are,' and that 1 unless the roads are given more time | to prepare, it will be little short of dis astrous.' MT. McAdoo replied:
 SITUATION UNLIKELY | q cannot see such a situation a all unless the state commissions and the in- terstate commerce commission, ignoring the necessity for maintaining wages. and the rights of just compensation. would reduce the rates unjustly. My idea of this railroad problem is to sta bilize conditions for five years, to play safe, and try out unified management how to deal with the railroad question: T 1 Mir. McAdoo declared his inclinations had always been against public own ership," and in favor of some sort of 1 private ownership with strong unified control, and that he was not in position 1 to say whether government operation private operation by railroads merged 1 into regional m onopoies, or diversified l operation by each road under govern ment supery ision would be preferable 4 Tt is to test these problems under
 normal peace conditions that I want g fiveyear extension of government man agement," he explained
 MT. McAdoo said he thought the pres ent principle of operation should be con tinued fo1 five years. with power tt initiate rates reserved to the President and that sht Tt lines should be included in the national system.
 NO DANGER OF BANKRUPTCY | Senator .-elogg asked whether tht 1 railroads, if turned back to private man. fagsment without giving Congress time ,t
 enact remedial legislation, possibly per. l hitting them to- unify their facilitie: | and to pool earnings, would not Iac, 1 bankruptcy result of the resumptio: 1 of the operation of state laws and regu- 1 lations providing low instrastate rates Mir McAdoo replied that he did not be lieve state agencies would force dowI
 rates without considering fully the new
 financial obligations of the reads.
 Don't you think that with the rail
 roads under government management
 for five years, they would be at tn
 mercy of the officials who run them a
 the end of that time. and that the peo pie of the United States would not hav
 chance to decide what they wanted done with the roads?" asked Senate
 Kellogg.
 r.Decidely not" was Mir. McAdoo,s re ply senator Pomerene asked if railroad ad
 ministration lawyers had considers
 whether Congress had power to legig Hate government management of railroad for five years in peace times Mir. Me
 Adoo sa i'd he believed Congress had pow
 CT to takf control of roads for ss year Tiff it wished.
 Senator Kellogg will resume his ex