Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-09


northwest Friday, pm. InterInent pri
vate,
Grafton and have urged him not to re-
iinquish federal control until Con-
gress has had opportunity to legis-
late, Mr.. Cuyler declared. He read a
message sent to Walker d. Hines. as
sistant director general. December 81,
saying:
The executives. of course. desire TO
act in entire harmony with the di-
rector general and to aid him. as they
nave in the past, in every way in
carrying forward the work of the
railroads under federal administra-
ton.
I'VE would urge upon the director
general the Importance. in conformity
with the Presidents statement Gin
his address to Congress), of time TO
consider plans for the future. and
that any return of the roads may be
deferred until at least this opportu-
nifty has been afforded.
Consideration Is Urged.
I'VE cannot help but urge upon the
director general the great disaster
that III our Judgement would ensue
both to the owners of the roads, the
security holders, and the public al
large. II the roads should be returned
until the time had been given to fully
consider these problems
Mr.. Cuyler explained that the asso-
citation of railway executives repre-
sented 80 per cent of the railway mile
age of the country and included vir-
tualiy all big lines except the South
ern railway.
Interstate Commerce Commissioners
Edgar E. Clark explained to the COM
mittee today that in his statement
yesterday urging that Congress and
not the President should determine
when railroads are to be returned to
private control he had not meant to
criticise Congress for giving the
President authority to relinquish the
roads at his will.
Wages Depend on Trade Conditions
Mr.. CuyIer said future wages, in case
roads are returned to private control
must depend on trade conditions He
added that the railroads probably
could not do business profitably under
private control with the present scale
of rates. wages and costs of materials
II think we would have to have
higher rates." he said. II believe the
government would have to raise rates
soon also"
Senator Townsend suggested that
Director General McAdoo had testified
that the government expected to be
able to reduce rates, and Senator KEEL
logg interiected: But every act O.
his indicates he is planning to raise
Them
Have the rates made by the director
general been as satisfactorily as If they
were made by the Interstate Commerce
Commission inquired Senator Gore.
Present Rates Not Scientific.
Il don't believe they are scientific
at ALL" replied Mr.. Cuyler.
Senator Townsend inquired what the
big railroads would do to short lines I'M
der the program presented. Mr. Cuyler
said the executives had no particular
plan further than the provision for ner-
gers under supervision of a secretary OF
transportation
Several senators asked whether a
secretary of transportation might not be
subject to strong political influence Mr.
Cuyler declared that railroad executives
believed q cabinet officers control would
be preferable to that by the Interstate
Commerce Commission, because the sim
gle executive would be closer to the
President and more likely to make rec
concentrations on railroad policy In the
portation probably would rise above DO
Utica! considerations.
Cabinet Officer Inexpedient.
Senator Cumnins suggested thai
through frequent changes of policy
by cabinet officer, at least once
every four years, railroad conditions
might be disrupted.
Chairman Smith of South Carolina
chairman of the COMMITTEES. said: 81
am rather of the opinion that a cabi
net officer, changing every four years
would create a situation in which we
would never know where we were"
To return roads to private manage.
ment without remedial legislation,
said Mr.. Cuyler, would be disastrous
financially on account of government
loans and also because, in his opinion
lower state rates would go into eff.
feet He said he wanted to correct al
impression created by Mr.. McAdoc
that railroads were not cooperating
fully, saying they objected only to aes-
eepting railroad cars and equipment
which did not suit their needs.
Defends the Commission.
A statement by Commissioner Nc
Chord placed in the record Yesterday
sought to defend the commission
against charges that it's refusal to
approve adequate rates had been main
ly responsible for decline of railways
credit in recent years. The statemen;
included tables showing that between
1891 and 1917 railroads operating in
come had tripled, amounting in 1917
to sl.0Gg, 200, 600, while average income
per mile of line had increased from
$2,056 to Sd,632. Dividends on divi-
dend-yielding stock had increased from
5.35 per cent to SIS per cent, and the
ratio of income to cost from SIT to
sat per cent.
Considered from the viewpoint OF
dividend payments, net income to as
serted cost, or surplus accommodations
the railroads were never in SO pros
porous a condition." Commissioner Nc
Chord said
Earnings Will Fall Short.
Railroad earnings under government
operation during the calendar year OF
1913 will fall short about s1as.000,0oo
~ lAr ,taI