Evening journal., 1922-02-02
NJ ADOO PRAISES
RAIL CONTROL
Says Roads Were in Better
Physical Condition at End
of Federal Control
CONTINUES HIS
DEFENSE TO-DAY

WASHINGTON, Feb. 2.-The rail-
roads 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 G.. McAdoo, former
secretary OF the treasury and war
time director-general of railroads,
today told the Senate Interstate
Commerce Committee in giving an
accounting of his guardianship Of
the properties during 1918. The
committee which is conducting an
inquiry into recent railroad condi-
tions was unable to hear all Of Mr..
McAdoo's testimony yesterday and
he continued his statement today.
Mr.. McAdoo contended railroad
labor had been loyal remaining at
its post when more lucrative en-
/ ployment was offered in other in
dustries and that wage increases
made while he was director-general
were not excessive but subsequently
were further increased.
The railroads, when turned back
to their owners, he declared, with
2O06 more locomotives, 26,S15 more
freight cars and 1861 more passen-
ger cars than they had possessed at
the beginning Of federal control,
we're in condition to meet the heavi-
est traffic demands in their history" "
'The credit OF the railroads was
destroyed before the war. Mr.. Nc
Adoo told the committee, quoting
statements by railroad executives on
the subject. The railroad executives
he added, did not produce under fed
eral control the results as to revenue
an operation they had brought about
prior to that time.
The railroads were permitted tc
continue for four months after fed
eral control was established with
little interference in the way Of
management, said Mr.. McAdoo bui
the regional reorga nization, he con
tended, was necessary in May, 1918
when he became convinced that the
managements OF the railroads by the
railroad corporations could not pro
duce desired results"
Unification OF the railroads IN,
former director continued. saved
S1lS.OOO.0OO in operating expenses
in 1918. Throughout federal con
troll. experienced railroad execu
tives were in charge Of the proper
ties under his direction. he said, de
, nying the deliberate attempts mad'
to create the impression that / made
, immediate drastic changes in thu
|, management of the railroads and dis
t regarding the experience and abilit!
: of the able railroad men Of the coun
; try, attempted to run the railroad
- upon new and untried theories OF m,
e own"
- Replying to a question by Senate
% Fernald. Republican, Maine, Mr.
. McAdoo declared he did not advo
, cate pooling Of business by the rail
roads under private control but ia
. vored assisting the roads in com
peting for traffic
II the railroads we're in "deplora
BILE conditions" when returned to th'
corporations March 1. 1920, and 4
the equipment was in the worst con
. dition ever known" Mr.. McAdo'
asked how was it possible that il
that year as stated in the testimon!
of their executives they handled 9Th
largest volume OF trafic" in thei
- history
Performance OF this "greates
} task" he added, was possible becaus
5 during the period of federal con
troI Il o1Q 94O2Q1 was exDended il
: improvements. additions. betterment
and equipment which made the rail
road properties an infinitely bette
transportation machine than on Jan
uary 1918, when the governmen
l took possession.