Show TEST URGED TO DECIDE IDE MERITS Of Ri R. R. R RULf Jl McAdoo l Declares 5 Years Years' c- c Extension of Government nt Manag Management ment Only Way to Solve Problem of of Lines y W WASHINGTON Jan 4 bl 4 the fi c proposed y year five ar extension of government go management of ra railroads can the government move moY towards a n permanent and comprehensive n- n I. I o Isto sive solution oC or the time railroad pro problem le Director General McAdoo j insisted today today tolay to to- day lay in in testifying at the Senate interstate inter infer state commerce committees committee's hearing on railroad legislation Other plans such as s private mai mat man r possibly with limited c consol consolidation l of lines and with 0 government no nt I supervision is n Mr Ir McAdoo said he con considered n- n inadequate expedients cU v nr-v ma makeshifts 1 iCS 11 f ts ant and he ho was was' prepared rc 1 now to make no further recommendation I tion lion if Congress Con decides not to extend co control as s he lie had sugg suggested Questions of Senators Kellogg Gore Gora McLean MeL an Townsend Cummins and Watson Watson Wat Wat- son were eze directed at Mr na n- n a vain attempt t t to ascertain r hi his 1 t 1 of what hat c course ur e would bo o best l an alternative for tor the year five proposal Y UH of ot Politic Fc Feared F Fear ar that tile the railroad men will m b bethe be U 1 s or i it t the next Id i nL O one of c the Jp re s th tb five year c r suggestion Mr MAd McAdoo o aa as S- S I If U the railroads are art held on 1 I twenty one one ho said I MI fear fe ithe i- i the thle c employee themselves would b come come objects of ot solicitation for o ana plan of ot campaign or one group tp ot of ca can can The railroads of ot the t d States must be kept out of politics He defended e government go operation against what hiat h he described as ts an at attempt attempt at- at tempt to discredit it en on tho the ground that net net earnings had been Insufficient insufficient to pa pay pa the compensation guar guaranteed guaranteed b by the government nt sa saying raying Judgment judgment Judg Judg- ment of ot unified operation should bo be bebaS baS based ed on earnings s only in normal pe cj times and that this was another reason for testing government control for Cor Ch o y years cars en re Co Conclusive clUI T Test st Wanted d dIy My Iy Judgment is that the test would ouM show something conclusive I I do o not know lenow what Hal said Mr r. r McAdoo replying to lo Senator McLeans McLean's query quer Can wo we b trying another test one system by To Senator Gores Gore's inquiry Dont you ou think the railroads should be permitted permitted per per- pert to consolidate gravitating to toward toward toward to- to national f ward tw two l or three compelling systems with some government supervision supervision super super- vision Mr 11 McAdoo answered 1 I think that would be only a palliative e to deal with certain condi condl- lions I woUld prefer to deal with I h. h the question comprehensively The director general g also expressed the opinion that railroads operating privately could maintain Joint ticket offices without violating antitrust laws Opinion Challenged n ec t I Senator Kellogg of Minnesota Minnesota- dials chalS challenged chal dial S longed ed this conclusion s Dont you OU know the senator in in- 1 that lint when a committee of ot 1 railroad presidents ts tried to unify the before the tho government tools took tool s toa roads s general in inquired e hold that tho the attorney by what authority they the were ere acting and intimated that they werl violating the law aw in the Do you b o between railroads I of or all competition I Dont Don't you vou think that lint the competition 1 of oC service has been heen a principal factor In promoting good railway service r Mr lr McAdoo replied t p it would I I 1 dont don't know yet et whether w I be bo best to eliminate all 11 comp competition That runt is wh why I want a y tl J ar r tc test t. t period I do not think competition 1 ie I. I an unalloyed blessing but a R. lon longer er trial will show how much of ot it may maybe maybe be necessary 1 Equalized Planned Senator Kellogg asked Mr lr McAdoo you ou have ha stated that thai U It it should bo be possible to reduce rates this this of ot fact has not tho year year ear As Vs s a matter railroad d administration plans on fo foot t for tor raising rat rates sr No Xo replied Mr 11 McAdoo we wo ha have under consideration a plan pin for tor equall equally ration of ot rates which may moy have havo tho tUn incidental effect of or raising charges In v 5 sonic some m localities Senator Kellogg then therm turned turne to the th matter malter of ot tho the supply of ot rolling stock ad added ed during the tho past year ear Tho Thu director general replied that al though numerically th time supply car had decre decreased so moro more effective e o operation en liaa lf r really all enlarged tho supply There Thero is no serious complaint no noVan noW V n an to the tho lack of ot freight c cari h ha Bold ald or 01 the prompt movement mo of ot freight of ot mav inar although h on acco account ut troop lOOp menta ments there Is some som shortage of p pas passenger pits pits- i equipment j I I I Senator Cumm Cummin l s of oC Iowa q questioned I st o ra j I Continued oi on Pa Page Pago u 6 C- C J t. t TEST URGED TO 10 DECIDE MERITS OF R. R R. R ROLE RUlE Continued d from Pago 1 the statement In regard to the car shortage saying ho hG had received man many complaints that railroads moved mo live 11 livestock livestock stock slowly from western markets to Chicago Mr Ur r. r McAdoo said conditions In this regard much better than thanIn In years ears Senator I Tv why f tn In n n- n n spite of ot increased revenues re tho the proportion proportion proportion tion of ot expenditures to receipts had Jumped from 69 per cent In tho the first ten months of ot 1917 1911 to 80 SO vcr per cent in that Period of 1918 InS We e had to meet tho the host cost of ot higher wa wages es and materials for tor the tho whole year car although higher rates were in effect ef- ef ef effect only six months replied Mr Ir McAdoo Mc Mc- Ic- Ic Adoo At the end endo of his testimony Mr Ir McAdoo McAdoo Mc Mc- Ic- Ic Adoo and amI Senator Smith of ot South Carolina Carolina Car Car- olina chairman of ot tho committee exchanged exchanged exchanged ex ex- changed brief complimentary speeches It was the occasion of ot Mr Ir cAdoo's last appearance before a body of ot Congress Con Con- gress grass before retiring ax na director gen ben eral Other Oilier Side to De DC Heard On Monday the committee will JIl hear Edgar Edar E. E Clark and other members of ot the Interstate state commerce commission and probably by Tuesday A A. P. P Thom Thorn counsel of ot the Association of ot Railway Executives will present tho the railroads railroads' views Mr McAdoo still is expecting dally to receive word from President Wilson concerning the appointment of ot a new ne director general and has no Information information information tion indicating tho the reasons for tor dela delay it was stated If It no selection IB is made by tho the time ho he leaves for a vacation in California I Tuesday ho will maintain nominally tho the functions of ot director general al although although al- al though Walker D D. D nines Hines his assistant may act informally as os director designated designated b by Mr McAdoo as ho has hils dono done frequently in tho the past |