Show RAilROAD OPERATION EXPLAINED INED BY M Director Urges Passage of Administration R. R R. R Bill BillI I so as to Prepare the Way ay for Fu Future Lure Bond Issues SENATE SENAlE COMMITTEE ll QUESTIONS RAIL CHIEF Only Roads Necessary to io toVal to toWar War Val Purposes to Be Kept Under Federal Control No Compensation for Injuries ries W TT Jan Tan Dir Director c- c tor br McAdoo doo today todar explained to the Senate interstate commerce committee committee com corn the operation of government control of railroads nn and urged speedy passage of the administration raili railroad railroad rail rail- i road rond lull hill by hr Congress in order to toI I clarify the financial situation so as asI asto asto I to prepare the way for future gove gov- gov e bond 1 issues rc l rte that government go operation would be extended to Canals canals canals ca ca- nals and in inland and waterways ays if it was consi considered ered necessary Mr Ir McAdoo spent more than two hours before the committee during durin which he ho was freely questioned r re regarding regarding re- re garding g the necessity for tor government go control of ot the carriers and tho the compensation compensation com corn of or short line rail railroads sIut s. s Mu Must Iut t S Seek fk In Court Investigations are being made tho director general said sallI to determine what short line railroads aro are to be ber r retained by bv the government Those not taken over el over ho he declared will not be compensated and If It the they suffer sutter damages redress will have to be ob obtained ob- ob tamed In iii the tue courts court He lie said It was as not proposed to keep control of ot an any unnecessary lines Mr Ir McAdoo said the present presen t railroad org organization would continuo continue to be bo employed em era- as long long- longas as It Is satisfactory I r dont don't f feel cl that the government g who isn't ought to employ anybody but I feel teel necessary he declared that thal we should not disintegrate the railroad organization until Congress has decided tho the future of ot the rail ran roa roads II d s. s Director General McAdoo said sOlid some coma good hind had been accomplished d In tn the tho three weeks of ot government control through rerouting distribution and co co- co ordination Questioned regarding the necessity for tor government s control Mr McAdoo said it was made necessary b by the railroads railroads' railroads railroads' railroads railroads' rail rail- roads' roads lack of ot facilities to handle In Increased Increased In- In creased war traffic and their failure to ordinate co property Disclaiming an any intention to censure tho the carriers ho he said sald blame for tor not meeting the transportation situation rested upon them because of ot their failure to In- In Continued on Page 2 i r MADOO EXPLAINS RAiL OPERATIONS Continue Continued From Page 1 I crease rease then their facilities in 1 1 1916 1116 16 all and 1917 i. i In tho those o y ye rJ ho hl said thc they spent loss for Cor Improvements Improvement than In previous years ear despite Increased traffic Short Lines d Mr McAdoo urged that the apr appropriation appropriation ro- ro of or in the thc bill ball be bere re retained Chairman Smith su suggested esteel that tho the short lines are in a difficult situation because of or the sudden su transition of or the transportation systems from a competitive com com- to a controlled basis It seems to me McAdoo oo replied that the lite short lines are arc hollering honoring before bo- bo fore Core th they're hit Tho bill ought to provide provide pro pro- vide Ide compensation for Cor railroads only that lint t- t are really usel used and injured Injure Do Io you ou 1 consider c these short tines Metes are arc part art of the continental system asked Senator Smith I 1 would cl them so so Mr Ml McAdoo replied If thc they form a H part of or the system utilized for forwar forwar war ne necessities As As Is to railroads taken over compensation Is la provided under the law we uc ire are going to to toas pass As s 16 to those outside it seems to me au any injury Is 18 a matter for Cor forthe tho the courts to determine I dont don't beHove believe be be- Hove lieve the law should require compensation tion finn to railroads whether hether the government government govern govern- ment needs them or not There is no disposition to rip anybody anybody any any- hod body up the back paek It IB is the governments government's govern govern- ovorn- ovorn ments ment's desire to treat 5 small as well welt as ns bl big railroads AS ns equitably as possible as far Car as Is compatible with public use nn and Interest All 11 lines excluded from government eo control ought to be kept going encouraged and treated b by tho government with utmost fairness and consideration Urges net Passage of or HIM nili Upon his request a short ex executive session wn was j held at which Director McAdoo McAdoo Mc Mc- Adoo 1100 ur urged on the committee Uee the Jm- Jm of ot passing tho the railroad bill without dela delay to clarify tho the financial situation so as to enable tho the government govern s government ment to continue the tho Liberty loans oa for Cor this year ea He agreed to appear before the committee again on Monday Toll Tells Vb What t linn lies Been neen Bon Done Senator Poindexter asked what had b been en done so 80 far to relieve relle transportation tion congestion Weve Yc already forced rerouting and gotten better distribution Has there thero been much substantial clearing up tilt yet et I dont don't think thank so In the cast east where there Is not much improvement ement The railroads he ho said were still under private management which reported re reported reported re- re ported extraordinary weather conditions conditions conditions condi condi- had delayed ed relief Im not giving excuses he added but there arc conditions some that no human skill and ability can cnn overcome o For three weeks weel 8 we vve have had successive successive suc suc- blizzards and harbors blocked with ice One of ot the serious troubles is delay dolay In unloading freight cars Ive I've tried to correct that by Increasing demurrage demurrage de lIe- charges an and I hope It will have ha a helpful Influence Senator Kellogg Kellogs Republican asked d questions regarding equipment of ot railroads railroads rail rail- roads road to which the director general replied he was not advised Senator Kellogg asked If It he did not know 1 much h of or the tho congestion e t was as due to 10 U the me lne numerous priority orders lic- lic A Adoo oo replied he lie did not But Dut you ou cut them put when you ou took toole ebat charge o Yes replied the director Asked Aked Pardon of or Senators Secretary McAdoo said he hoped the senators would pardon him for tor not answering some of ot their questions as ho had been so 80 busy he could not give time to stud study of or certain matters and added he confessed he did not know much about railroading In response e to questions question of or Chairman n Smith Smith tho tune director said tho the purpose of the revolving fund would not be to take care of ot maturing obligations I hope that most of ot the railroads can do that he said The Tho committee asked about the tho status of at the tho present railroad McAdoo said he would continuo continuo con- con to employ the present organizations organizations or as far tar as they the prove pro satisfactory ought to employ anybody who is not necessary but I feel teel that we wc should not disintegrate the railroad organizations organizations organizations until Congress has decided the future of ot the railroads the tho director said Id On th the tha request of ot Senator Cummins the tho director agreed to furnish h a list Hal of or high salaried officials I have havo not assumed these theae men were government at this time said ald al Mr McAdoo lIe He added he would not object to adding a clauso clause in tho tale bill Providing pro for state taxation as now enforced |