The Washington times., 1921-02-23
'U.S.RA|L OWNERSHIP
sure, SAYS M'ADOO
Describes Esch- -cummins Bill,
Restoring Private Control,
as "Piece OF Bunk"
tcontinued from First Page. +,

tconunued from First Psse.)
won't be stopped until the American
peoole begin to think Gle arly on this
problem again. and force measures to
stop such raids on the taxpayers
money"
SCORES RAIL EXECUTIVES.
Mr.. McAdoo scored the rail- execu-
tives for having put over" all sorts
of misleading propaganda. In an ef-
fort TO show that Federal control had
proved a failure.
Railroad labor should continue to
receive adequate wages for its serv-
ices, and ruinous consequences will
follow any attempt by the roads to
take from labor what Il has Justly
earned, and Is now earning, Mr..
McAdoo said.
''It isn't fair to tell a railroad work.
man that he Is worth 80 cents an
hour and then refuse to pay him that
sum. merely because railroad bonds
do not yield up TO a certain per cent
In profits" McAdoo said. That argu-
ment won't go with the rail workers,
In my opinion"
McAdoo said the railroads were
using the same argument with the
rail employees that they are employ
ing In slightly different form, In their
continued "hammering" upon the Gov
ernment for new money concessions.
PEOPLE MAY .GET wIsE.-
what are they going to do when
this now of gold stops coming to
them from the United States Treas
urv9'' he WAS asked
Search me-" McAdoo retorted.
Maybe by that time the people will
commence getting wise as to what is
going on In the railroad world. and
will themselves take q hand In
running the carriers"
McAdoo said that the railroads will
become more and more a problem OF
the highest public importance, and
that he expects to see the issue ono
of major portions before the
beginning of another Presidential
campaign. He said he did not think
that the railroads were more entitled
to a, per cent return than other
groups and industries and the rail
groups must realize that fact. even
tuaIly.
Solution OF the rail problem never
will be achieved through proposed
consolidation of the weaker with the
stronger lines. McAdoo continued.
MERGER TALK RUBBISH.
"All this talk about merging the
roads is rubbish" he said. "Consoli-
tary action by the carriers. Rail-
roads OF the larger class, now getting
fat returns. never will consent to
linking up their lines with the weak
er roads. Your large and prosperous
road will shrink from any suggestion
that in the public interest its divi-
dend yield be reduced. for the benefit
OF the less prosperous lines. For
example, the Sante Fe would reject
any proposition to merge with the
Rock Island
When he was Secretary of the
Treasury, Mr.. McAdoo said he ia
vored loans under the Liberty bond
acts to foreign governments in the
enormous sums made. declaring that
this was essential to win the war.
without these loans the war
would have been lost" McAdoo said.
TIME CAME TO STOP.
But after hostilities ceased. and
peace conditions again began to pre-
vail, i thought II was time to stop
these loans. I did not believe it wise
to take the taxpayers money. send 1t
abroad for uses there, as a perman-
ent peace time policy. So early in
last year announced that these
loans should be stopped"
well, do you think we should con-
tinue making these loans?" he was
asked.
mo, do not, except in so far az
h., nj hnan TO had
Many of these credits were set up
after ] went out OF the Treasury. /
can speak only OF those that were
authorized while l occupied that Of
flee. Those that were made while l
was the Treasury head were deemed
absolutely essential to aid in the re-
habilitation of Europe, and was one
Of our parts in winning the war.
MUST MEET CREDITS.
"Now that additional credits have
been established, 1 think we are honor
bound to make advances under them.
wherever proper commitments are in
existence"
did you not know that England
sought heavy additional credits In
order that her own credit might be
used in oil investments, and other
ventures! MCRuOO was dsheu
Yes / heard of that, and at the
time the reports were denied. l am
not entirely certain at this moment
TO what extent such amounts of
United States Government funds were
used. IL it is true they were so en-
ployed by the British government"
The former Secretary admitted
that charges had been formally laid
before him while he was in office,
tending to show that the funds OF
the Government loaned in Europe
were used by foreign governments.
not for rehabilitation or relief, but
to exploit various commercial under
takings
"It was never clearly established
that foreign governments, notably
Great Britain, actually did divert her
own credit to investment fields after
our own credits were made available
to them" McAdoo added. Mr.. McAdoo
intimated that the representatives OF
foreign governments had set up a
general disclaimer on this point, and
that the matter was not further
probed.
WOULD STOP DRAINS.
On the general question of further