The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1919-02-06
HINES SPLITS
M'AD0O IDEAS
IN RAIL PLAN
Suggests Three Year Period Of
Control as Test-0pposes
Government 0Wnership-Sub-
mits Statement to Committee.
BY United Press.

ILL NC "
at least three years or be shelved at
once.
That is the ultimatum laid down
today by Walker b. Hines, director
general of railroads. He proposed q
three-year extension period as a COM
promise because Of bitter opposition in
congress to the recent fve-year rec
ommendation of VIM. G. McAdoo.
In IN event, Hines declared when
he faced the Senate interstate COM
merce committee today. the present 81
months limit on government operation
is in~tclernble. He had in mind the res
olution introduced by Senator Cum
Minis to return the railroads to private
control before that limit expires. Hines
came out frankly against government
ownership but earnestly appealed for
adoption Of a f~ve-year test period. He
faVors private operation by a few COM
panies under a profits guarantee and
strict government regulation.
Explains His Idea.
Il think a three-year extension would
accomplish a great lea to remove the
| difficulties which are Inherent in the
21-months plan," Hines told the Sen
ate committee. Even three years
would segregate and spread out and in
part dissipate the ~unfavorable and the
psychological factors which under the
Il months plan promise to converge so
as to do the maximum damage to the
public service.
Also the three-year extension would
give opportunity for legislation inime-
diately following instead of immed!-
ately preceding the presidential cleo.
ton.
Added Stability.
But" he added, Il believe the five
year extension would be much better
because it would give added stability"
Hines, realizing that his plan faces
widespread opposition among both
parties in congress-, argued from every
possible angle for it's adoption.
Unless a reasonable extension shall
be granted it viii be contrary to the
public interest to hold the railroads
for the full p months, Hines de-
| clared.
we had better terminate the con-
trol and go back to the old system Or
we should extend the control lor.a
enough to admit of an adequate oppor.
tunity to adopt a radical and new sys-
TEN which will really bring about a per-
manent solution"
Unofficial reports at the railroad ad.
ministration are that unless congress
votes an extension, a proclamation Will
be issued In March. turning the roads
back about June 80.
Question of Rates.
Fears of railroad executives and 9TH.
ers that prompt return will result in
chaos and financial loss, were secuted
by Hines.
w can only assume a chaotic con-
dition by assuming the Interstate Com
merce commission would omit to per-
form its functions" he explained.
Attacking the commissions proposal
for increased powers, Hines said pres
ent laws give ample power to preserve
existing rates and for adjusting them
to meet immediate necessities, should
government operation be abandoned.
Pre-war intrastate rate rates could be
set aside in favor of the higher ones,
Hines declared he believed.
II would advise the president that
any REIMBURSEMENT made ought to be
on reasonable notice and in due and
orderly manner" Hine said.
Alarm Only Danger.
Il believe that unless companies,
through a mistaken policy, themselves
create a needless state Of alarm, a
reasonable and orderly transition back
to private management could be mad
III IN iS-ht ~ LIN
ditional legislation as well as it could
under any legislation that is likely to
be obtained.
Il confess I can see no reason what
ever why this control should continue
simply for the purpose of protecting
the railroads from an alleged chaotic
| condition"
! Oppose Ownership.
Hines nnounced his stand on the
: question of government ownership.
II do not personally believe in gov
! eminent ownership" he explained. Il
| helieve there a be a form of radically
| reconstructed private ownership with
| such c,ose government supervision, in
/ Guiding government representations on
| boards of directors as will give the
/! public and all the benefits of
! government ownership, and at the
same time avoid the political diff
~culsies which, perhaps are i~nseparable
| from government ownership
Nevertheless, Hines said he wants a
fair test made.
we know that q lhrge body OF the
I people OF this country have a settled
conviction that this question canno he
successfully disposed of except through
! government ownership. Arguments of
I government ownership advocates are
temporarily at q discount by reason of
q reaction from all forms OF govern
ment control, this being a perfectly
natural aftermath. OF the war"
Not T;rno Enough.
Two yenrs Is not tiRic enough fo- q
fair acinonstrasion, herald.
No plan can be satisfactory which
permits cxiBtence of over capitalization
and q large number OF companies. scIre
strong, some weak, limos believes.
Any plan of private management
ought to ptoy.A. for participation OF
the government II perhaps Of labor.
in the PROFITS In excess Of ON com.