The midland journal. (Rising Sun, Md.) 1885-1947, 1921-03-04
Foreign Advertising Representative
THE AMERICAN PRESS ASSOCIATION
SEES RAILROADS UNDER Gov
ERNMENT CONTROL

American railroads are mo Ting
rapidly toward Government owner
ship" William G. McAdoo, former
director general of the Railroad .Ai-
ministration, declares. The Esch-
Cummins bill. which provides. for
the return of the railroads to pri-
vate ownership, is characterized by
McAdoo as "the biggest piece Of
bunk ever put over on the Amcri-
can people.
McAdoo charged that "a vicio;s
propaganda" had been carried OH to
secure the return of the railroads to
private control. and that the present
condition of the railroads shows
that Government operation was
more efficient than private oper-
alton" "The railroads are gong
from bad to worse" McAdoo said.
He declared that the Esch-Cum-
minis bill had created "gratitudes''
for the railroads which "they are
now reaching out to grab" and that
the American people have bee.l
'baited" to establish these funds for
the railroads.
McAdoo said sit is folly" to make
the American people give the rail-
roads 6 per cent. return upon
valuations fixed, which do not rep
resent the service performed. Ado
quate rates for adequate service
performed, McAdoo said, should
be the standard.
Higher freight and passenger
rates have not helped the rail stu
ation." McAdoo said. Advances III
rates have largely benefited those
carriers in the more prosperous
class, but very little help has been
given under them to the weaker
lines.
Higher rates mean less business
handled. Rates should be maintain
ed that will act as stimulant TO in
dustry, not as check to its growth
and development.
present rates, for example, are
running some New England indus
tries out of business. Such indus
tries are unable to compete With
similar industries located in other
parts of the country.
'tThe roads are wading into the
Treasury for all they can get. and
won't be stopped until the American
people begin to, think clearly on this
problem again, and force measures
to stop such raids on the taxpayers
money.
ut isn't fair to tell railroad
workman that he is worth SO cents
an hour and then refuse to pay him
that sum, merely because railroad
bonds do not yield up to certain
per cent. in profits. That argument
won't go with the rail workers, in
my opinion"
McAdoo said the railroads we.c
using the same argument with the
rail employees that they are employ
ing in slightly different form in their
continued "hammering" upon the
Government for new money conces-
sions.
Mr.. McAdoo said that the rail-
roads will become more and more q
problem of the highest pubic inn
portance, and that he expects to see
the issue one of the major proper
tions before the beginning of ar
other Presidential campaign.
Solution of the rail problem never
will be achieved through proposed
consolidation of the weaker with the
stronger lines. Mr.. McAdoo contiau-
ed.
"All this talk about merging the
roads is rubbish" he said. "Conso-
lidation can only come through vol
untary action by the carriers. Rail
roads Of the larger class now. get.
ting fat returns. never will consent
to linking up their lines with the
weaker roads. Your large and pros
porous roads will shrink from any
suggestion that in the public inter-
est it's dividend yield be reduced.
for the benefit of the less prosperous
lines. For example, the Santa FEC
would reject any proposition 10
merge with the Rock Island
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