New-York tribune., 1919-01-28

tion to prevent it, and if the President
accepts the guidance of his Director
General of Railroads." declared Sena-
tor Cummins, in introducing his bill,
"and returns the properties to their
owners without, meantime, legislative
! provision for their future, | want to
say that this country Will be precipi-
tated into the greatest financial and
transportation cataclysm it has ever
known"
Fear Of Bankruptcy Expressed
Congress has regarded the alterna
tive propositions laid down by Mr.
McAdoo as representing a distinct
threat on the part of the Administra-
tion. Railroad executives, appearing
before the Senate Interstate Commerce
Committee, which is holding hearings
ON the McAdoo proposal. have declared
that ii the roads are turned back at
once, without legislation to protect them
in the rates fixed during the period of
government control, many of the com
pauies Will be forced into bankruptcy.
These rates were fixed by former
Director General McAdoo to meet the
huge wage increases, totalling more
than Ss00,O00 900, which he granted
employees of the roads. 1t has been
pointed out that, unless Congress pro
vides otherwise, the moment the roads
go back to their owners the intra
state rates, fixed by state commissions
or by state laws at levels far below
those fixed by Mr.. McAdoo, will become
operative. Under the war emergency
powers of the Federal control act
these state rates are suspended.
The report persisted in several quar-
ters at the Capitol to-day that if there
is' danger of the Cummins bill going
through at this session, the Administra-
tion Will throw back the roads on their
owners before March 4. 1t was re-
called that this was done last year in
the case of the short line railroads,
when 1T appeared that Congress was
about to pass a bill compelling the Ad-
mlnlstratlon to retain the short lines
under Federal control so as to secure
to them the same privileges as to rates
as were granted Federal controlled
properties. No confirmation Of this
could be obtained in railroad adminis-
tratlon quarters.
Text of Proposed Bill
The text of the Cummins bill reads
BE 1t enacted by tine Senate and
the House Of Representatives of the
United States of America, in Con-
gress assembled, that Section Ia of
the Federal controlD act is hereby
amnded to read as follows:
"Section IA. That the Federal con-
troll Of railroads and transportation
systems herein and heretofore pro-
Nided for shall continue for and dur
ing the period of the war and for one
year and nine months next following
the date of the proclamation by the
president Of the exchange of ratifica~
tons of the treaty of peace, unless
Congress otherwise directs.
NO rlghC to compensation shall &C
crue to such owners from and after
the date of the REIMBURSEMENT of the
property so relinQuished, whether re-
turned at the end of said period or
sooner by direction of Congress-"
Indications are that the Senate Inter
state Commerce Committee will report
out the Cumm,ns bill promptly, as the
sentiment of that body is overwhelm I'm
lngly opposed to both alternatives OF
the McAdoo proposal, q tive-year period
or Immediate return of the roads. The
committee has been holding hearings
on the McAdoo bill since the first OF
the year, and is still far from gaining
the views Of all who wish to be heard.
Thorne Gives Shippers View
Clifford Thorne, who is representing
number of grain, livestock and pctro-
leum shippers, was back on the stanC
to-day. He declared that shippers OF
the country, IN vast majority, are not
only opposed 70 government ownership
ana government operation of the rail-
roads, but see no reason for extending
the period of Federal control
Contrary to statements issued by the
railroad administration, the witness
cited examples Of proposed freight rate
ready dJustments' devised by the gov
efnment, which would result in in
creases on many commodities and
classes. over and above the genera
20 per cent increase last summer of
from 90 to 800 per cent
Senator Cummins, who is himself IN
iavor Of government ownership with
private operation Of the roads stated
II az his opinion, in addressing the
senate to-day, that the five-ycar period
desired by the Adm nistration will not
be granted. He predicted, however, that
solution Of the whole railroad prob
lem was possible within d year lie
said:
'W hen the Director General ap-
peared before the Senate Interstate
Commerce Committee, he stated in a
rather clear and understandable way
that If Congress did not extend the
period Of control it was probable, at
least, that the railroads would be re-
turned 10 their owners at the close Of
this session do not mean to say he
stated that specifically. | only say no
ether fair Interpretation could be put
upon his statement before the com
mittee"
N<.t