The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-02-02
CONTENDS LABOR
HAS BEEN LOYAL
TO THEIR DUTIES
Stuck to the Railroads When
More Lucrative Employment
Was Offered Them.
EX- X-SECRETARY TELLS
OF WAGE CONDITIONS
Says Railroad Labor Was Gross
ly Underpaid Before Gov
ernment Took Control.
tny The Associated Press)

WASHINGTON, Feb. THE railroads
Of the country were in better physical
condition at the end OF the period OF
federal control, than they had been when
taken over during the war, William q.
McAdoo. former secretary of the treas
ury and wartime director general OF
railroads today told the Senate Interstate
Commerce committee in giving an ac-
counting Of his guardianship of she prop
critics during 1918. Mr.. McAdoo viii con-
tinue his statement tomorrow.
Mr. McAdoo contended railroad labor
had been loyal, remaining at its post
when more lucrative employment was
offered in other industries and that wage
increases made while he was director
general were not excessive but subse-
quentIy were further increased.
The railroads when turned back TO
their owners, he declared, with 4,006 more
locomotives 2e.s15 more freight cars and
,05i more passenger cars than they had
possessed at the beginning of federal con-
troll. were in condition to meet the
heaviest traffic demands in their history.
sThe credit OF the railroads was
DESTROYED before the war Mr.. McAdoo
. told the committee, quoting statements
by railroad executives on the subject.
The railroad executives, he added, cid
not produce under federal control the re-
had brought about prior to that time.
The railroads were permitted TO con-
tInue for four months after federal con-
troll was established with little interfer-
ence in the way of management said Mr..
McAdoo, but the regional reorganization,
he contcnded. was necessary In May
1918. when he became convinced that
the managements OF the railroads by the
railroad corporations could not produce
desired results.
TJnihcation OF the railroads. the former
director continued, saved sl1S.ooo.OoO in
operating expenses in 1918. Throughout
federal control, experienced railroad
executives were in charge OF the prop
critics under his direction, he said, deny
ing "the deliberate attempts made 70
create the impression that / made inn
mediate drastic changes in the manage
ment of the railroads and disregarding
the expense and ability of the able rail-
roadmen OF the country, attempted TO run
the railroads upon new and untried theo-
ries of my own
Replying to a question by senator
F'ernald. republican, Maine. Mr.. McAdoo
declared he did not advocate pooling OF
business by the railroads under private
control but favored assisting the roads
in competing for traffic.
II the railroads were in ''deplorable
conditions" when returned to the COR
porationS. March /, 1920. and if their
equipment was in the worst condition
ever known" Mr.. McAdoo asked how was
II possible that as stated in the testimony
of their executives they handled "the
largest volume Of traffic in their history.
Performances of this greatest task he
added, was possible because during the
perlod OF federal control s1,2f9,S40,291
was expended in improvements, additions,
hetterments and equipment which made
the railroad properties an infinitely better
TRANSPORTATION machine than on January
i, as1s, when the government took pos
session.
Considerable time was given by Mr..
McAdoo during the afternoon session to
a discussion OF railroad wage conditions.
He said that in his opinion railroad labor
was grossly under paid at the time the
Government took control and there wero
many grave abuses in the matter OF
working conditions. II was necessary. he
continued. to fix rates OF pay for railroad
employees that would enable tho railroads
TO command their share of the countrys
; labor so that this basic necessity OF the
war could function at the required point.