The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1922-02-10
MR. McADoo's POSITIVE DEcLA
RATION

BEFORE the senate Interstate cOm-
merce committee Mr.. VIM G. McAdoo,
openly charged that federal control
had alone saved the railroads
Of the United States from ruin dur
ing the war.
The distinguished statesman con-
Guided a lengthy defense Of govern
ment administration with this empha-
tic declaration:
There is no ground for the charge
of railroad executives that the gov
eminent ruined the railroads. The
undisputable fact is that the govern
ment saved them"
The former cabinet member hearth
Iy praised the work of railroad en-
ployes during the war, saying they
we're "underpaid as compared to
competitive industries"
Federal control, he summarized,
had eliminated useless competition
at great saving to the public, in
creased facilities for the comfort of
the travelling public, decreased oper-
ating costs and improved efficiency.
Without federal control of the rail
roads, McAdoo said the carriers would
have failed in the crisis of the world
war
The former director-general en-
phatically urged the railroads to elm
mate competition, as the public pays
the price," He also usged:
Use of passenger terminals and the
immediate union of freight terminals.
Since the return to private opera
tions McAdoo said the roads were
costing the people S54,774,631 more
a month than during federal control
Operating costs, he added, had in
creased ss7,2s6,3S6 a month since the
return to private control.
He denied statements of railroad
executives that the government had
put burdens upon the roads by in
creasing wages.
81 adopted recommendations of the
railroad members on the adjustment
board as to classification and wages, .
he said, in refusing the charges. He
told of deciding in many instances
against increases while employees in
other industries were getting advanc-
es.
"The charge that wages of rail
road labor were unnecessarily raised
and that wages were thereby elevat-
ed throughout the country, is false
said the former director 1.-The exact
contrary is true. The schedules of
wages promulgated by the admins
tration during 1919 were generally
below those in other basic industries
and well below rates fixed by the navy
yards, national labor adjustment
board.
The former director declared he
was convinced that the return of the
roads to private ownership had cost
the people much more" than if they
had been retained for a five-year test
under government ownership.
Il am also convinced that the
present level of freight and passenger
rates would have been unnecessary
because there is no question in my
mind that a well-directed and unified
operation of railroads would enor-
mously reduce the cost of operation
and greatly increase efficiency" he
declared. McAdoo added that such
a test period would have protected
investments, averted labor troubles
and lower cost of transportation
In concluding, McAdoo said that no
great industry had ever been more
generously treated by the govern
ment than the railroad industry" He
declared that the government after
guaranteeing the roads against losses
for six months after the return to
private control, had given them a
basis of rate making which assures
them under normal conditions an an
nuaI income of 81 IA O0O.0O0