Arizona republican., 1922-02-02
m M'ADOO SAYS.
FEDERAL RAIL.
CONTROL WAS.
BIG SUCCESS.
Wartime Director Says
Roads Returned To Own
ers In Better Condition
Than When Received
ERepubIlcan =. P. leased wIrel

WASHINGTON, Feb. Railroads
were in better physical condition at
the end of the period of federal con-
troll than they had been when taken
over during the war, William G.. Nc
Adoo, former secretary of the treas
ury and. war-time director general of
railroads, today told the senate inter-
state commerce committee in giving
an accounting of his guardianship of
the properties during 1918.
The committee, which is inquiring
into recent railroad conditions, was
unable to hear all of MIR. McAdoo's
testimony today and he will continue
tomorrow.
Mr.. McAdoo contended railroad la
Dor had been loyal. remaining at its
post when more lucrative employ
ment was offered in other industries,
and that wage increases made while
he was director general were not eX-
cessive but subsequently were fur
ther increased.
The railroads, when turned back
to their owners, he declared, with
zoos more locomotives, 26,S15 more
freight cars and 1851 more passenger
cars than they had possessed at the
beginning of federal control, were in
condition to meet the heaviest traffic
demands in their history"
No Credit Before War
"The credit of the railroads was
destroyed before the war he said,
quoting statements by railroad ex-
ecutives. The executives, he said,
did not produce under federal con-
troll the results as to revenue ard
operation they had brought about
prior to that time. The railroads
were permitted to continue for four
months after federal control was es-
tablished with little interference in
the way of management, he said, but
the regional reorganization, 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, he con-
tinued. saved $11S,000,00O in operat-
ing expenses in 1918. Throughout
federal control, experienced railroad
executives were in charge of the
properties under his direction, he
said, denying ''the deliberate at
tempts made to create the impress
sion that l made immediate drastic
changes in the managements of the
railroads and disregarding the ex-
/
men of the country attempted to run
the railroads upon new and untried
theories of my own"
Replying to a question, Mr.. McAdoo
declared he did not advocate pooling
of business of railroads under private
control, but favored assisting the
roads in competing for traffic.
Biggest Year in History
If the railroads were in "deplorable
conditions when returned to the cor
porations March l, 1920, and if their
equipment was in the worst condt-
tion ever known" he asked how was
it possible that in that year, as stated
in the testimony of their executives,
they handled "the largest volume OF
traffic" in their history.
Performance Of this greatest task
he added, was possible because dur
ing the period of federal control ST.
219, $40, ,291 was expended in improve
ments. additions, betterments and
equipment which made the railroad
properties an infinitely better trans
portation machine than on Jan. /,
1918. when the government took pos
session.
Mr.. McAdoo said that in HIS opin-
ion railroad labor was grossly under
paid at the time the government took
control and that there We're many
grave abuses in the matter of work
Ing conditions. 1t was necessary, ne
contended, to fix rates OF pay for
railroad employees that would enable
the railroads to command their share
Of the country's labor $50 that this
basic necessity Of the war could func-
ton at the required point"