Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-02-03
RAuROADS'NOT
RUINED, SAYS
W. G. M'AD00
Declares That Government
Saved Them During U.
S. Control.

Washington. Feb. ,s.-The charge OF
certain railroad executives that the
government, ruined" the roads is
groundless. William G. McAdoo, form
er secretary of the treasury and war-
time director general Of railroads, told
the senate interstate commerce COM
mittee yesterday in concluding his tes-
tinony in it's inquiry into the trans
portation situation.
'The indisputable fact is that the
government saved them he declared.
adding that government operation
gave the public improved service m
saved millions Of dollars In transpor-
taticn costs" ~
Summarizing his testimony, Mr.
McAdoo asserted that he had shown
that "the appalling transportation
crisis at the time federal control was
inauguratcd. forced. as a vital mill;
ing over Of the railroads: that FEEDER
al control alone could save
the situation and did ave it," and
| that Congestion was broken. railroad
lines were coordinated and operated
as an effective national machine n
the required amount of transportation
to meet military needs was sup
Piled"
L.. S., Was Generous
i No great industry was lever more
| generously treated by the govern
| ment," said the former director. de-
clar:ng that during federal control it
had assumed all risks Of operations,
| protected bond and stockholders dur
ing the war; transformed the proper
ties from "a menace to public safety
in January, 1918, as stated by the in
ters:atc commerce commission into
IAN efficient machine" had 'stabiliz-
ed railroad labor, and, during the per
iod Of control, had guaranteed the
roads an annual rental of $685.
I: 0oo. 900, or $175.o00.000 more than
Chairman Cummins of the committee
had said they were entitled to re-
ceive."
He attributed the increased cost Of
operation under private control. in
part, to the "loss of all marked econo-
mics resulting from unified control
under government and advocated es"
adjustment of a system of u~nification
to bring about an economical common
8 of terminal and other facilities Of
the different roads.
Discusses Expenditures
The railroads.. Mr.. McAdoo said. ex-
! pended during the six months guar
antee period s402. 75o,000 more than
in a similar period in 1919. He read
letters to show that orders for equip
ment placed by the roads during the
guarantee period were accompanied
! by instructions that the bills should
be submitted before expiration Of the
six months.
Going into railroad expenditures
for betterments and additions charge
able to capital account. at the request
! Of Chairman Cummins. Mr.. McAdoo
declared such costs totalled 1882 .000.-
900 in 1915; $e41, ZOO. coo in 1917, and
about $3.50. 100000 each year during
! federal control. Senator Cummins
commented that the government had
expended relatively more on the roads
Z under It's management than had been
expended by the owners prior to fed
eral control.
! THAT is true" the former director
replied. THE railroads have bee,
unable to keep up their plants to the
high standard which is necessary To
| produce cheap transportation"
when everything is settled Mr.
Cummins said. I'VE will be. think,
about s1.30O.40O,ooo behind"
IF that is true" said Mr.. McAdoo
cit will represent an extremely small,
cost to the government for the wal
transportation"
II have no sympathy" the chair.
man declared, with the charge thai
(. there was inefficiency during the per
Tod of the war"