Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-02-01
M'AD00 DEFENDS
HIS R. R. CONTROL
Former Director General An
swers Rea, Willard and
Other Critics
AvERTED SMASH IN 1917
1sy the Associated Press


Washington. Feb. l.--Ehargcs Of in.
efficiency IN Federal wartime control OF
railroads "hnve been made and pub
'ishcd with n rccklcssness for which ig-
norancc. design or selfish purpose alone
ran account" William G.. McAdoo.
former Director General Of the Railroad
administration declared today at the
Senate Interstate Committee inyestiga- =
ton Of the present railroad situation.
Mr.. McAdoo told the committee the
Government took over the railroads in
'917 because they were breaking down
under a private management. unable to
meet the stress of war demands. and
that Federal control and unified opera
ton saved the situation. He presented
"orieS Of letters sent by him in 1918 70
Samuel Rca, president Of the Penn
Sylvania; Danic! Willard. president vi
the Baltimore and Ohio. and others. no
tifying them he considered their man
agemcnt unsatisfactory and inefficient.
''Thc measures taken during the year
1913 called for no apologies. said
report signed BY \. II. Smith, presi-
dent of the New York Central. and six
other railroad men. who were regional
directors under the Railroad Admin
istration. which Mr.. McAdoo presented
as conclusive answer TO the charges
he mentioned. They were caused by
war conditions, and the efficient opera
tons Of the railroads in support of the
Government during the war justifics
every act Of thc Administration.
Mr.. McAdoo quoted the executives to
the effect that 'it was impossible 70
avoid tn" inrr"as" Of wages which were
granted. and those which are pending
are inherently Il result Of the same
causes: The executives asrribcd the
necessity for wagc increases 10 .'wnr
industries surrounding the railroads on
all sides paying war prices for labor
and depicting the railroad supply of
labor. particularly the supply Of skilled
labor
There was q dciicit in railroad rev.
enue during 1918. under income and
rentals to their owners of S2l6. .OO0. 200.
Mr. MrAdoo said, but that represented
"a part OF the war cost. an expenditure
for which there is no compensation but
victory II" cited messages sent to
former President Wilson by the Pre-.
mi"rs of England. France and Italy in
February. 1918. begging for 800, 900
tons of brcadStuffS, TO supply which
whole trains Of empty cars had to be
!ushed from the Atlantic coast TO the
Middle West. for weeks, and rushed
back with equal expedition to the ports,
loaded.
Railroad men ran the railroads Of
the United States when I was Director
General he said. land II they were
inefficient or disloyal to their Govern
incnt they must answer TO their con-
sciences. But I have said that I be.
Icred them to be both loyal and efficient
and that the remarkable results they
achieved in 1918 conc!vsivcly proved
they were
llC quote! Mr.. Underwood. president
OF the Eric lires, as saying the roads
wrr" going 10 ~ smash" in 1917 DC.
cause of under maintenance and poor
earnings.
y" furt Ler evidence than that from
the lips of railroad executives" said
Mr.. M"Ado". lis necessary I, demon.
strntc that III" raj roads az the end uf
l'lI were in condition of disrepa!r.
P"Ht"h"d improvements. neglected
equipment aud deferred maintenance.
1.-THE Railroad Administration ndopt
90 IN" )nlN Nv" l,oSSIblc mcl!odS for
Improving tho general conditions. First
innl",liat"ly using NOR" etfiriently avail
Gbl" forces and fGciIitirS and later in.
'r"asing thcui.
AS / step in til" dirc, ,inn, the
Railroad Administration called on the
representatives. "f organized railroad
employees +" agree to certain Inodiica.
ttonS in their contracts re ntivc 70 hours
Of labor and working rules. Th" rail-
road employees pntriotcnlly gave NJ
privileges and concessions.
Julius Kruttsrhntt, chairman Of the
board Of the Southern Pacific, had said
his railroad had been "skimprd 10 iii"
danger point" BY the failuiv ii the
Govcrninenr to lay sufficient tics, and
Mr.. Nc tdoo aid th" statement was
"hatly coutr0diCtcd ly the fncts."
The issue is incSrarnblc." he said.
after rcriting the measures taken. "if
there WIS in 1913 cxtravaguncr and
in"tic"n"y, these railroad executives
w"rH guilty Of il. ana If they were not
guilty thew they ar" now, for their
rwn purposes. guilty Of an attclnp, t"
'JnirCh the record.
Th" dcci: incurred during the first
fv" months. b"for" the regional III.
l"ctorA :,uk charge was much greater
than hat which was incurred during
the seven months remaining Of III" same
year. Mr.. McAdoo said. and this dem.
onstru;cd the conclusion h" had given.