New-York tribune., 1919-02-05

roads of the country would be grouped
according to their geographical loca-
tlon. For instance, all roads in New
England might be merged into a single
company to be known as "The North
eastern Railroad,' those in the East
merged into "The Eastern Railroad" "
anG so on. If necessary, in order to
carry out the principle, Mr.. Hines said,
he would divide existing transcon-
tlnental systems, assigning each of the
parts to the appropriate regional COM
pany.
The aggregate value of railroad in
vestments in each territory would mark
the limit of capitalization of each
regional company, which, under govern
ment direction, would issue its stock
and debentures in exchange for out
standing securities of the present com
panies. The government would guaran-
tee fixed return on the stock of the
regional companies and would have rep
resentatives on the board of directors
of each regional company.
Regional Commissions Suggested
For each region there would be a
regional commission, operating under
the general supervision of the Inter
state Commerce Commission, with re-
y.
Also for each region there would be a
bipartisan wage adjustment board,
made up equally Of representatives. of
the regional railroad company and of
its employees. In the governments rep
resentatives on the board Of directors
of each company he would have includ-
ed representative of tho wage adjust
ment board and the regional commits
sion. in order to bring to the manage
ment of the railroad an appreciation of
the labor and rate making difficulties
OF each region.
Senator Townsend DO you think you
have sufficient authority under the
present Federal Cd ontrol act to put your
ideas into operation in the regulation
of the roads?
Mr.. Hines-I think adoption of this
or any other plan of permanent solu
ton is a matter for original legislation
by Congress.
Mr.. Hines went on to explain that
IN the administration of the roads
the railroad administration for pur-
poses of unified control had adopted the
regional system, but what he proposed
was regional scheme Of private owner
ship and operation.
Senator TownsendDo you think it
would take Congress five years to pass
legislation embodying your plans?
Mr.. Hlnes-No, | do not, though |
am only the veriest tyro in legislative
matters. | do not think it need take
full five years to work out the legis-
lation, but owing to the fundamental
character of the changes proposed and
the multiplicity of the details to be
provided for, | do not think it could
be worked out in two years.
Senator Townsend-Do you want
Congress to do anything at this time
other than extend the period of Fed
eral control?
Mr.. Hines-The appropriate proceed
ure. | think, is for Congress to extend
the period of FEDERAL control and then
proceed to consider permanent legis-
iatIon. say this in order that while
Congress is considering the question
we can have not only a fair test of
government operation under normal
conditions, but likewise adequate rails
road service during a period of indus
trial readjustment.
Senator Townsend But what, at the
end of five years, will you have ac-
complished save a demonstration of
the particular plan OF operation which
the railroad administration during
that period sees fit to adopt?
Mr. Hines-The results, however,
will speak for themselves. The fact
that the railroad administration may
or may not be prejudiced in favor of
particular plan viii not alter the re-
suits as shown by the figures.
Mr. Hines said under his plan effort
would be made to build up the SER
vice in each section of the country
and that no section would have to
suffer because of the unprofitablenes
of the particular road supplying that
section.