Arizona republican., 1919-01-04
QUESTION M 'ADOO'S PLAN IF RETURNING
 ROADS ID OWNERS
Senators Engage Director On His Policy; Would
 Not Have Him Release
 Roads From U. $. Control
Republican A. p. Leased Wire]

WASHINGTON, Jan. 3.-Director General McAdoo, testifying today be- fore the senate interstate commerce committee at the opening of hearings on the future policy toward railroads, was subjected to a fire of questions by Senator Cummins of Iowa and Senator Kellogg of Minnesota, repub- licans, intended to develop why MT. McAdoo believes it advisable to turn back the roads to private management as soon as possible, if congress does not extend the period of federal con- trOl for five years.
 Both senators argued by implication for retention by the government of the railroads for the full 21 months after the declaration of peace, authorized by the existing law, and legislation mean while by congress to provide perma- nent solution of the railroad problem.
 MT. McAdoo gave three reasons why he does not believe in retaining control of the roads for 21 months:
 That railroad companies already are challenging the authority of the rail- road administration to require them to purchase certain equipment, and otherwise are not giving a full meas ure of cooperation.
 That some state railroad commits sions threaten to dispute the right of the federal management to dictate in- trastate rates in normal peace times, and,
 That the uncertainty of the future would cause a ferment within railroad organizations, particularly destructive to the morals of employees and officers.
 Crime to Turn Roads Back Soon" To Senator Cummins' comment that he thought it little less than a crime to turn back the roads at an early date, with the standards of wages. material costs and rates as they are. , and that unless the roads are given more time to prepare, it will be little short of disastrous,'' Mir. McAdoo re- piled;
 T cannot foresee such a situation 1 at all unless the state commissions and the interstate commerce commits 1 sion, ignoring the necessity for main 1 taining wages and the rights of just compensation, would reduce the rates unjustly. My idea on this railroad problem is to stabilize conditions for | five years, to play safe, and try uni fled management for that long.
 Mir. McAdoo declared that his in clnations had always been against public ownership" and in favor ot some sort of private ownership with strong unified control.
 MT McAdoo said he thought the i power to initiate rates should be re i served to the president and that short | lines should be included in the national system.
 Remedial Legislation Needed
 Senator Kellogg asked whether the railroads, if turned back to private management without giving congres: time to enact remedial legislation would not face bankruptcy as a resul of the resumption of the operation O state laws and regulations providing low intrastate rates.
 Mr. McAdoo replied that he did no believe state agencies would forc' down rates without considering full! the new financial obligations of thu roads.
 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 then at the end of that time and that tn
 people of the United States would no
 have a real chance to decide what the ; wanted done with the roads?" aslle Senator Kellogg.
 Decidedly not" was MT. McAdoo' , reply. He also added that he believe
 congress had power to take control c
 railroads for 99 years if it wished.
 Senator Kellogg will resume his ex
 animation of the director General to
 morrow morning.
 MT McAdoo disclosed to the commit
 tee that the aggregate governmer compensation to all roads for 1918 \ calculated at little less than s900 I 0O,O00 that this is about $136,000,0 ,0C more than the railroads net incom
 this sum representing the deficienc
 which the government will have
 pay and which MT. McAdoo said shoul = be considered a war expense; ths II wage increases would amount to bt e tween $500. coo 900 and s700, 100000. ar if that the coal bill for ten months la U. year was $4O,O00,OOO greater than ft y the same period of 1917.