New-York tribune., 1921-05-19
Roads Oppose
u. s. Limit ON
Officials Paw
Cannot Hold Executives,
Says Willard; Good Men
Entering Other Work. No
Recruits From Colleges
Lines Seek Improvements
N. Y. Gentral's Head Criti-
cizes Government Delay
i'm Settling War Claims
From The Tribune's Washington g,t,eau

From The Tribane's Washington Bareau
WASHINGTON, May 1s. - Daniel
Willard, president of the Baltimore &
Ohio Railroad, and A. H. Smith. presi-
dent of the New York Central lines,
were the witnesses to-day before the
mittee in the railroad investigation.
Mr.. Willard occupied nearly all the
time and finished his statement. Mr..
Smith had barely begun the reading of
his views when the committee ad-
journed until tomorrow.
Mr. Willard referred to charges
made before the United States Labor
Board that the railroads are unpro-
gressive in making improvements in
methods and appliances. He filed ex-
hibits showing that for thirty-eight
years the companies, through the
American Railway Association and its
technical and expert committees, have
been conducting studies and research
for improvement in methods. He said
they contributed jointly 100000 a
year for the activities of the associa
ton and that the latter's efforts are
effective in keeping the roads abreast
of the times in engineering and other
respects.
Saying that ne thought the trans
portation act made successful opera
ton of the roads possible. Mr.. Willard
added:
"If it is to succeed the railroads
must cooperate, and that they are try
ing to do
He replied to criticisms of railroad
officials and theix salaries.
at is unfair and unjust to the whole
railroad situation" he said, "to accuse
officials of being dishonest because
some at some time have BEEN"
He denied that interlocking directo-
rates control the roads and said
charges to that effect were made to
create the impression that, because of
such relationships, directors were able
to exercise detrimental influence.
Such power, he said, could be exercised
only through the chief executives, and
he added that at no time in his ex-
perience as president Of the Baltimore
& Ohio had any effort been made to
exert such an influence over him.
He spoke of the attitude toward sal
aries of officials and said there was
much misunderstanding on the subject.
Because of the limitations proposed in
legislation, he declared, it was becom-
ing harder and harder to obtain suit
able men, and many valuable attaches
are leaving the roads to go into other
work.
"It does not make any difference to
me-" the witness continued, "but it
does make a difference to private own
ership"
at is strange that the position of a
railroad official is the only one in
which it is discreditable to succeed"
Mr.. Willard went on. "However, there
was no criticism when Charles M.
Schwab recently said that the salary
of the president of the Bethlehem Steel
Company is $1,000,000 year. 1t is diff
ferent with the railroads"
Mr.. Willard said the roads were los
ing men who could be developed into
executives, and he cited the instance
of an official receiving salary of
$4,000 a year, who resigned to enter
an industrial enterprise because the
future was more promising.
"Is it good thing for the trans
portation service to lose men of that
calibre 2" he asked.
Mr.. Willard referred to a bill in
troduced in Congress at this session
which would limit the salaries of rail
road officials to $4,000 annually unless
larger sum was authorized by the
Interstate Commerce Commission.
"When limit is placed on the sala-
ries of railroad officials it ought to be
done with the clear understanding of
what it means" the witness said.
Mr.. Willard said many applications
formerly were received from college
graduates who wanted to enter rail
road service, but these practically
have ceased.
'Even my own son intended to go
into the railroad service when he left
college," MIR Willard added, "but be-
cause of the uncertainties of things he
has changed his mind. / did not care to
encourage him to go into business
where to succeed means to be looked
on with reproach."
"The railroads of the United States
were the best in the world before the
war and furnished the best economical
transportation to be found anywhere,''
said Mr.. Smith, Of the New York Gem
tral, in opening his remarks. "They are
still the best in the world"
He took up briefly the delay in eff
fecting settlements between the roads
and the government for the war serv-
ice of the roads, and deplored the fact
there had been so much delay "and SO
much sparring and questioning' as to
what compensation the roads should re-
celve for the period of Feder.1 control.
Some means should .>c found by
which the lines and the railroad ad-
ministration could get together, Mr..
Smith iscisted. He said the roads
nee9sS2 the money but could not get a
settlement with respect to the enor-
nous inventories of materials turned
over to the government when it took
the roads over.
In the case of the New York Central
alone, he said, the amount of materials
and cash commandeered exceeded $780,
600, 900.
Sinn Feiners Open Fire
0n pny;ce Frnn, rTra;y,