South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-02-02
M'ADOO DENIES
U.S.. REGULATION
WRECKED ROADS
Declares Systems We're Great
" Benefited During War
time Control.
SAYS LABOR WAS LOYAL
Claims Last Years Business
Disproves Rail Heads
Allegations.

WASHINGTON. Feb. THE rail.
roads OF the country we're in better
physical condition at the end or the
period Of federal control than they
had been when taken over during
he war. William G.. McAdOo, for
uer secretary of the treasury and
wartime director general OF rail-
roads. wednesday told the senate
Interstate commerce committee in
giving an accounting OF his guard
ianship of the properties during
1918. The com mittee. which is con-
Quoting an inquiry into recent rail-
road conditions. was unable TO hear
an or Mr. McAdoo's testimony Wed
uesday and he will continue his
statement tomorrow
Mr.. McAdoO contended railroad
labor had been loyal remaining at
its post when more lucrative employ
ment was offered in other indus
tries and that wage increases made
while he was director-general were
not excessive. but subsequently were
further increased.
Rolling stock Increased.
The railroads when turned back to
their owners. he declared, with zoos
more locomotives, 26.015 more
freight cars and 1851 more passen-
ger cars than they had possessed at
the beginning OF federal control,
were I'm condition 90 meet the heav-
lest trahic 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 execu-
tives. he added. did not produce un-
der federal control the results as TO
revenue and operation they had
brought about prior 10 that time.
The railroads were permitted TO
continue for four months after fed.
cral control was established with lit
tie Interference in the way OF man.
agement." said Mr.. McAdoo. but the
regional reorganization, he contend
ed was necessary in May. 1913,
when ne became convinced that
the arrangements of the railroads
by the railroad corporations could
not produce desired results"
Unifcation OF the railroads the
fromer director continued. saved
Sl1s,OO0.O0O in operating expenses
in 1919. Through federal control.
experienced raiIro executives
we're in charge of the properties un-
der his direction. he said. denying
the deliberate attempts made 20
create the impression that I made
Immediate. drastic changes in the
management Of the railroads, and
disregarding the experience and
ability OF the able railroad men OF
the country. attempted TO run the
railroads under new and untried
theories OF my own"
Replying To a question by Sen
Fernald. Maine Mr. MCAdoo de-
clared he did not advocate the pool
ing of business By the railroads un-
der private control but favored as
-isting the roads i'm competing for
traffic
1921 Volume DssproVcs Claim.
If the railroads were i'm "deplor-
able condition" when returned TO the
corporations March 1, 1920. and II
their equipment was in the worst
condition ever known" Mr.. NcAdoo
asked how 10 was possible that in
that year as stated i'm the testimony
or their executives they handled the
largest volume OF traffic" in their
history.
Performance Of this greatest
task" he added. was possible be-
cause during the period of federal
control S1.21e.S4O.921 was spent in
improvements, additions. better
ments and equipment which made
the railroad properties an infinitely
better transportation machine than
ON Jan. I. 191S when the govern
uent took possession.
Considerable time was given by
AR lTcAdoo during the afternoon
Continued on pace two)