New-York tribune., 1918-12-18
Hines Pleads for
5-Year u. S. Test
OF Rail Control
Former Santa Fc Chairman
Would Await Crystallixa-
tion of Public Sentiment
as to the Final Disposition

WASHINGTON, Dec. Walker D..
Hines, Assistant Director General Of
Railroads and before the war chairman
OF the board of directors of the Atchi-
son, Topeka & Santa re Railroad, TO-
day made plea for William G.. Nc
Adoo's plan for live-year trial of gov
ernment control OF railroads.
Explaining the plan of his chief. Mr.
hines said the Director General desired
That the question should not be solved
liurrledly. but time should be allowed
tor the thought of the country regard
ing remedial legislation to crystallze
Saying most railroad men were urging
turning the roads back to their owners
with remedial legislation to cure the
dlsablilties under whlcn the llnes Ia
bored PRIOR to December Is, 1917, he
continued:
"Is it possible at this time to get
remedial legislation? | think that
must underlie consideration Of that
proposition because there is no ad-
vantage in talking about turning back
the railroads with remedial legislation
II the conditions are such as to make
tho remedial legislation impossible.
Favors Thorough Discussion
"TalSe somc Of the leading points
that must be considerd in q scheme
OF remedial legislation. Take the qucs-
ton as to the extent to which there
shall be state control or whether there
shall be any state control in respect
to railroad rates or railroad improve
ments Or railroad service and we find
there are the most pronounced differ
chcns OF opinion on that subject.
The National Association of Rail-
~ ,icc,
ng IN Washington made it very clear
that it was opposed to the elimination
OF state control. A great many other
interests affected are strongly in favor
OF eliminating that control SO on that
fundamental point there is clear-cut
issue in respect of which do not un-
derstand the public sentiment has
crystallized, and concerning which there
would be prolonged debate. Indeed
the point is so important and so far
reaching that it would need pro-
longed and thorough discussion before
a decision would be reached which
could be satisfactory to the country.
Capitalization Big Issue
Take the other question of over
capitalization. A great many people
who have given prolonged attention to
this subject believe that one of the
insurmountable obstacles to satisfac-
tory regulation in the past has been
the settled suspicion on the part of a
large part of the shipping public and
on the part of labor that railroads
were heavily overcapitalized and that
all the showings made by the railroad
companies as to need for additional
revenue We're based on false premises
because they were based on overcapi-
tallzation. There has been no crystal
llzatlon of sentiment on the subject,
though there have been a great many
charges and counter charges in regard
to it.
There is the further question
whether it is expedient to continue to
have in this country, say, 100 different
raliroad companies conducting the pub
nc service. The question of how to
orlng about the transition of the pres
ent ownership by many corporations,
with a remarkable variety Of different
capital structures, to new organizations
with new scheme of capitalization,
and how to effect the exchange of the
securities of the new company for the
securities of the old. and as to the
pas!s OF the capitalization and as to the
Dasls OF the representation upon the
BOARD or DIRECTORS, are questions of the
very greatest Importance which can
not be decided without the most thor
ough consideration.
Then that involves the question of
the aplication of the antitrust laws.
SNAIL the antitrust laws continue to
apply TO the railroads as they have in
tne past! In dealing with that ques-
tion the attitude Of the public must be
considered. The public has appeared
to have very definite views in the past
and yet the. question arises whether
those views ought to continue t. be
applied to railroad operation if private
operation is to be resumed. But You
can readily see that it is a question
when cannot be disposed of in a short
time" ''''i