Show 11 M MADOO DEFENDS I 1 I J PLAN FOR PAYING U. U US U.S. S. S RAILROADS I i Ii I Tells Committee He Would H Ra Rather ler Be Liberal T Than lall Tie lI I l Up Transportation I i I I i SENATORS BITTERLY BITTERLY- i I II I QUESTION DIRECTOR I i Protests Compel Chairman to to Announce l Rail ChiefS Chief j Will in Return to Stand t S I nv n A. A 1 J J 1 i iI I Sf MM fr cr Wa Washington Jan Ian 21 Declaring that h he would rather err rr on the thc side of liberality than tic up the tle nations nation s tran transportation system In litigation William G. G McAdoo director general of ot transportation defended ll before tho the Senate Interstate commerce committee today his plan for or compensating the roads Bitter examination cross-examination of ot the witness witness witness wit wit- ness was precipitated le led by Senators Cummins and La Follette and In the midst of or the cross fireS Chairman H. H D. D Smith adjourned the hearing I f When A on top lop of oC n this r the chairman I proceeded 10 P nu no would not be needed n aln there was such uch a a. chorus of oC protest from commit commit- teemon that the chairman announced that McAdoo would app appear ar again Do you Oll b believe bellevo Ir In government go ownership own own- was one of oC the first questions questions questions' ques ques- popped at Director General McAdoo Mc Mc- Adoo b by Senator Watson atson of ot I Indiana ana McAdoo doo replied he did not then he qualified and elaborated his answer How did you OU ba base bazie e the compensation for the railroads asked Senator Kellogg Kelogg Kel Kel- logg og ogg of or Minnesota The They are based replied McAdoo on Ion what Is reasonable in view of ot tho the emergency It Is a a. good trade for the government less than th the 1 roads dg earned last year ear Do you think their earnings fair fall or exorbitant Hn f r lo 10 Court We te must remember senator that what we propose Is not what we im Im- irn- irn pose ose The roads would have their re recourse re- re courso course to the courts I 1 would ouM rather re-I re r I err on the tho stile side o of liberality and get gel possession slon at once than have l to commit com corn mit the whole question to the courts because the roa roads s thou thought ht themselves cs unfairly treated j I It lilt Js Is suggested though said Kello KelI Kel- Kel I I lo logg p that the well paid ones one under tinder your scheme will win agree to it It a and 1111 tho those e not doing so o will go to the courts All AIl xv we can do Is Ii to offer otter said Mc Mc- Adoo Some roads are arc in the han hands s of ot re ro- ro en cel What of ot them We ought declared the director to help reorganize thorn them on a sound basis On a a basis fair fall to the public and nd to their security holders Kellogg and McAdoo en engaged In a n lively lI colloquy over o the directors director's Insistence in insistence In In- that Con Congress r ss hold the roads after atter the war yar until legislation was waft I drafted McAdoo finally admitted no legislation would be necessary If ir Congress Congress Con Con- ConI I gress wished the roads to return to I Ithe the recent competitive basis Would you ou substitute something else Would you ou abolish the Sherman antitrust law la demanded Kellogg MI I 1 cannot Ia say ay replied McAdoo That might be so That will be he for I Congress and Congress Congre ought to re re- Herve plenty plent of ot time to treat the mattei mat mat- ter tei calmly But Just what legislation do you foresee Insisted the Minnesota sena senator sen sen- a ator I or I r cannot say You tell the condl- condl In w UI ana l suk legislation said McAdoo Senator Kellogg Kellogg Kellogg-Do elJo K-Do K Do you ou think the President or the interstate commerce c commission and the various arlous state commissions commissions com corn missions should control rates Mr Ir McAdoo The McAdoo-The The President un un- un While the roads rous atc are under his control he should bo be able to decide this Instantly Senator Kellogg r In th the matter of or operation yes CS I t am speaking solely of rates ratos McAdoo Both McAdoo-Both Both state and federal commissions should be he consulted but hut tho the President should have ha final au au- tim on ty Senator Kellogg Then Kellogg Then until the I President turns back the roads ls to their owners owner one man Is to direct all traffic trat- trat fic fie aJ anti and l fix all compensation without 1 hearings It If he wishes and without ap appeal appeal appeal ap- ap peal McAdoo Tho McAdoo-Tho Tho President has man many powers he does doe not exercise J Kellogg's Kelloggs questioning made McAdoo I admit that small matters of regulation I affecting local service should be left with the states tates Now all this power is war power i bald ald Gore Can Caim the legislation be projected into peace times I S j think that power Is In Congress said Eald McAdoo Can we hold these lines JInes Indefinitely I believe ve so without doubt com doubt com compensating the roads of course courso Do o you OU not think that taking over o the bl big lines and not taking over the small mall ones will Injure the latter They Timey rhe said McAdoo will find rind the federal government a much better bettor mas mas- leI ter than ever er the they did the trunk 8 I |