The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-01-07
CrOss-Questioned BY Senators
Cummings and Kellogg as
to Railroads.
GIVES THREE REASONS
The Companies, Mr.. McAdOO
Says, Are Challenging Au
thOrity of Railroad Admins
tratiOn to Compel Purchase.

Washington, Jan. 6.-Directo
General McAdoo, testifying before
the senate interstate commerce com
mittee at the opening of hearings on
the future policy toward railroad |
was subjected to a fire OF questions
by Senator Cummings, of Iowa. and
Senator Kellogg, of Minnesota, Re-
publicans, intended to develop why
Mr.. McAdoo believes 1t advisable to
turn back the roads to private man
agement as soon as possible IL con-
gress does not extend the period OF
federal control for FIVE years.
Both senators argued by implica
tion For retention by the government
of the railroads for the full -
months after the declaration of
peace, authorized by the existing
law. and legislation meanwhile by
congress 10 provide a permanent So
luton of the railroad problem
| Mr. McAdoo gave three reasons
why he does not believe in retaining
control of the roads for the 21
months:
| That the railroad companies al
ready are challenging the authority
of the railroad administration to re-
quire them to purchase certain euuip-
ment, and otherwise are not giving
\ full measure OF cooperation:
| That some state railroad com
missions threaten to dispute the
| o. nj f1xn f<I,
dictate fnrrastate rates in normal
peace times and,
| That the uncertainty OF the future
would cause ferment within rail
road organizations particularly de-
structive to morale or employees and
ofiicials.
| To Senator Cummings commen
that he dhought 1t little less than a
crime to turn back the roads at an
early date. with the standard OF
wages, material costs and rates as
they are" and that "unless the
roads are given more time to pre-
pare it will be little short of 'iisas-
| trous." Mr.. McAdoo replied:
| al cannot foresee such situation
at all unless the state commissions
! and the Interstate commerce com
mission, ignoring the necessity for
| maintaining wages and the rights OF
! just compensation would reduce the
! rates unjustly. My idea or this
railroad problem is to stabilize ron-
| ditions for five years, TO play safo.
| and try out unified management for
that long. Then we will know bet
| ter how 10 deal with the railroad
question"
Mr.. McAdoo declared that his in
clination had always been against
public ownership and in favor Of
some sort OF private ownership with
strong unified control.
Mr. .McAdoo said he thought the
present principle OF operation should
be continued for five years with
power to initiate rates reserved to-
the President and that short lines
should be included in the national
system.
Senator kellogg asked whethe
the railroads, if turned back to pri-
vate MANAGEMENT without giving
congress time to enact remedial lee |
islation, possibly permitting them to
unity their facilities and to pool
earnings. would not face bankruptcy
as result Of the resumption OF the
operations OF state laws and regula-
tions providing low intrastate rates.
Mr.. McAdoo replied that he did not
believe state agencies would force
down rates without considering fuzzy
the new financial obligations of the
roads.
Don't you think that with tn
railroads under government man
aPement for five years. they would
he 1T the mercy Of the officials who
run them at the end OF that time.
ard that people OF the United
states would not have n real chance
to decide what they wanted done
with the roads," asked Senator Kcl-
logg.
Decidedly not" was Mr. Nc
Adoo's reply