The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-02-02
McAdoo Defends Government
Control OF The Railroads

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Washington, Feb. s.-Taking. into
consideration every expenditure, by
shippers, travellers, OF by .congression.
/ al appropriation, the railroad system
of the United States only. cost the
American public an average of $470,-
63T .404 per month for all the war
time period when the government ran
1t, William G. McAdoo, first director
general Of the administration, testi.
fled today before senate investiga-
ton committee. He said it was cost
ing under private control now an aver
age of $525,412,l35 per month.
"1n other words, the cost of pri-
vate operation, since federal control,
has been 32 per cent higher than. un-
der the railroad administration" Mr..
McAdoo said in concluding.
Speaking on the general results
and effects of restored private con-
troll, and the return to the, old. So
called competitive system of railroad
operation with it's great wastes and
inefliciencies, with the tremendous
burden imposed on the public of in
creased freight and passenger rates,
the evil consequences of which are re.
fief1cted in the prostration of agricul-
ture, labor and industry, Of the colos-
sal claims made by the railroad cor
porations against the government for
alleged under maintenance, inefficien-
cy Of labor, etc., am convinced that
it would have cost the American peo-
pie less money to have maintained
control for test period than has re-
suited from their return to private
control.
81 am also convinced that the pres
ent level of freight and passenger
rates would have been unnecessary
because there is no question in nv
mind that well-directed and unified
operation of the railroads wouldenor-
mously reduce the cost of operation,
and greatly increase efficiency"
"While the time has gone BY" he
said, to urge retention of the railroads
by the government, in the first year
of government operations the total
savings made by the railroad admin
istration in "unified operation" was
$11S,000, 900 as against expenses ,un-
der private operation.
Mr.. McAdoo returned to the attack
on his critics among railroad execu-
tives, today, dealing chiefly with two
charges, the first concerning under
maintenance, while the second was a
warm defense Of his own labor and
wage policies. Railroads went back to
private ownership, he said, with "more
locomotives and more cars" than they
had given the government. AS to the
charges of neglected repairs, he said
that the total cost of fitting freight
cars for service after the government
concluded was not more than $9.508:-
600, and turning to reported condi-
tions today, he said it would cost rail-
roads s33, 1856 900 to repair the cars
that are too damaged for service now.
AS to wage increases under his ad-
ministration, Mr.. McAdoo asserted
they amounted to $s66, 6,S02 600 per
year, while increases granted to the
employees in 1920, under private opera
ton, amounted to- 81 ,0sl ,000,O 900.
"The fact is, railroad employees
worked for less pay during the war
than any other class of industrial
workers doing similar work." he de-
clared. "The realization they were
working for their government in the
stress and strain of war, and that they
would be fairly treated inspired them
and spurred them to unusual effort
and faithful service"
Taking over the roads, the admin
istration found frequent and costly
labor turnover, discomfort, and de-
moralization," with payrates far :low-
er than either the cost of living or
the scales in private: industry justi-
fed, he added. He recounted the set
ting up of wage boards, with manage
ment representatives, and the grant.
ing of increases.
"There was not the slightest COM
plant from any railroad executive
that wage increases in 1918 were too
high" he said. "* g" The charge
that the wages of railroad labor were
unnecessarily raised and that; wages
were thereby elevated throughout the
country is false. The exact contrary
is true.
"The schedules Of wages promulgat-
ed by the railroad administration dur
ing 1918 were generally below those in
other basic industries, and we'll be-
low the rates fixed by e,navy yards
the National War Labor Board, and
by the shipbuilding adjustment
boards.
"+ = = Conditions in the war indus.
tries necessarily caused the advances
in the rates Of pay of railway work.
ers. The railroad administration was
itself conservative instead of ar