New-York tribune., 1922-02-03
McAdoo Denies
Federal Control.
'SRuil1ed'' Roads
Government Saved Carriers.
Improved Service and Cu,
A'illions From Trarsspor-
ia'ion Costs. Hc Declares
B'amcs Ia;l Executives
Operating Expense Now 81
Per Cent More Than l,;.
der u. s. Rule. Tic Insists

WASHINGTON, Fob. . Tho charges
OF certain railroad executives that The
government "ruincd' the roads is
gronndless. William G.. McAdoo. former
ly Secretary of 80 Treasury and war
tmc Director General of Railroads.
told the Senate Interstate Commerce
Committee to-day in concluding his
testimony in its inquiry into the trans
portation situation.
The indisputable fact is that the
government saved Them" he declared
adding that government operation gave
the public improved service "and saved
millions of dollars in TRANSPORTATION
costs"
Summarizing his testimony, Nc
Adoo asserted that nc had shown that
the appalling transportation crisis"
at tho time Federal control was inau-
gurated "forced. as vital military and
cccn cnomic necessity. the taking over Of
the railroads." that "Federai control
alone could save the situation
and did save IT," and that "ccngestion
was broken railroad Fines were CO.
ord'nated and operated as an effective
national machine and the required
amount OF transportation to meet mill
tary needs Was supplied"
Roads Generously Treated
No great industry was "evcr moro
generously treated by the government"
SAID the former director. declaring that
during Federal control it had assumed
all risks Of operation, protected bond
and stock holders during the war. trans
formed the properties from a "mer-
acc to public safety in January, 1918.
as stated by the Intcrstate Commerce
Commission, into IAN efficient ma
chine" had "stabiizcd" railroad labor
and during the period of control. had
guaranteed the roads an annual rental
of S906 900. 900, or Sl75.000.0 900 more
than Chairman Cummins Of the com
mittec, had said they were entitled to
receive In addition. he said. the car
riers were given a basis for rate max
ING which assures them. with a return
or normal business conditions. an an
rual income Of $l,134 600 600. or 5000.
600, 900 more than the government rent
Tor six months after rcturu Of tho
properties TO private control.
Ovev-maintonancc Of the railroads
during the period Of control, Mr.. Me
Adoo contendcd. offset all claims for
under-maintenanco The monthly oper-
ating cost under Federal control. he
said. was $375,9SS ,Sl3, compared With
73.257,239 under Subsequent private
management. This, he pointed out,
was equivalent 60 a saving under gov
crnment operation OF S91 POS ,2S6 q
month. or Sl.l67,220.632 ycxr.
Declares Expenses Increased
He placed the cost of operating the
railroads since restoration of the prop
critics to the corporatio orS at 32 per cent
higher than it was during Fedora con
troll He attributed tho increased cost
{ operation under private con.Nol, in
pat. to the "loss of all marked econo-
mics resulting from unified control
under the government and advocated
establishment Of system Of unlfca-
tlon to bring abont an economical CON
nor use of terminal end other facill-
ties Of the different roads.
The railroads. Mr.. McAdoo said, eX
pended during the six months guaran-
tee period S402. 750 900 more than in a
similar period in l9l9.
Senator Cummins. chairman of the
committee, questioned the witness
closely as 10 The cost to the govern
mont of operating the railroads.
"Whcn everything is settled" Mir.
Cummins interjeotcd. "we will be, [
Think about $500 O00C, 900 behind
"If that is true" said Mr.. McAdoo.
"t will represent an extremely email
cost to the government for the war
transportatlon.'
81 have had no sympathy,' the chair