Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1922-02-03
MADoo SAYS GOVERNMENT
SAVED THE RAILROADS

Washington, Feb. 2.-The charzs a
certain railroad executives that the gov
ernment ruined the roads il Eroundierr.
William c. McAdoo. former secretary a
the treasury and wartime director-ren-
eral OF railroads. told the senate inter
state commerce. committee today in con-
Guiding his testimony in It's inquiry tnto
the transportation situation
The indisputable fact is that The ror-
eminent saved them" he declared, add
Ing that government operation gave tho
public improved Eefvice ~and saved NIL
lions Of dollars In transportation costs.
Mr. McAdoo asserted he had shown
that the appalling transportation crisis"
at the time federal control was inaugu-
rated forced. as vital military and
economic necessity. the taking over ut
the railroads" that federal control .
alone could save the situation. and
did save It." and that congestion was
broken railroad lines were co-ordinated
an doperated as an effective national
4 machine and the required amount %
/ transportation TO meet military needs
- was supplied"
No great industry was Fever mora
generously treated by the governments
/ said the former director. declaring fh.s
during federal control II had assumed All
risks OF operation. protected bond ana
stockholders during the war. transferred
the properties from "a menace 70 pubic
safety" in January, 1918. as stated bv
| the interstate commerce commission. lutn
an efficient machine" had -s;abfllzeds
railroad labor and. during the period az
| control. had guaranteed the roads an
annual rental OF ss0e.oo0. 600. or s17s--
100000 more than Chairman Cuurai-.
OF the committee had said they were en-
tiuea 70 receive In addition be said.
the carriers were given q basis for rsfs
making which assures them. with q re-
turn OF normal business conditions a,
annual income OF S1.l5loDo. 900. o.
szooo0o.ooo more than the governments
rental, and were guaranteed AGAINST
losses for SIX months after return Of th~
properties to private control
OTer-naintenance of the railroads Su-
ing the period OF control. Mr. McAdoo
contended, Offset all claims for under
maintenance. The monthly o,eratiur
cost under federal control, he fasd w.
s275. $50. .sl5. compared with st7s - ',ss
\ rrder subsequent private nnar,zreu,er-
] This, he pointed ont. vas equivalent To =
saving under government operation of
ss1.26s,2ss a month. or s1.1s7,sao. .ssz =
year. He placed the cost Of operatin :
the railroads since restoration Of the
! properties to the corporations at az rer
cent higher than It was curing federal
| control
The railroads, Mr. McAdoo sasd sr-
pended during the six monthss guarantees
period s4o2.75o.ooo more than in a s.rnl-
lar period In 1919. He read letters IA
J show that orders for equipment placsd bv
the roads during the guarantee period
were accompanied by instructions thzt
the bills should be submitted before ar
piration Of the six morlths
Going into railroad expenditures so-
! hetterments and additions charreable ia
capital account at the request Of Chair
man Cummins. Mr.. McAdoo declared
. such costs totaIled $685., 900 900 IN 1915.
s542,7oo.o 900 IN 1917 and about 1861 .ooe :
ooo each year during federal control
! Mr. McAdoo called attention TO T,
: ! statement by Walker D. Hiues torre-
: director-general. that an estimated de-
! felt Of s714.ooo.ooo would not represer,
: the entire cost and quoted Director-Gen.
eral Davis to the effect that ucu.datiop
= Of all claims would cost the governuen,
: $1,000. .ooo, 900.
v When everything Is settled sena.
! tor Cumnlins interjected. I'VE will be.
think. about $1,000. .oe0, 900 behind"
g II that Is true" said Mr.. McAdoo. at
\ VIII represent an extremely small cost Il
y the government for the war transports
ton"
d Il have had np sympathy the chair
man declared, with the charge tha.
: there was ineficiency during the persot
: Of the war"