The daily banner. (Cambridge, Md.) 1897-2008, 1919-02-04
WOULD SPLIT ON
R. Il. OPERATION
Mr.. Hines Does Not Believe in
Federal Ownership.
URGES FIVE-Y:AR CONTROL
Reconstructed Private Ownership
With Government Particip ating in
Management, is His Plan.

Washington, Feb. 4.-WaIker D.
HFes, director general 81 railroads,
testified before the senate interstate
commerce committee for the first time
since his appointment us railroad
head.
He declared he did not believe in
government ownership, but i'll or@an-
ization of few big "ailWay COM
panieS subject to ,lo$ government
Super> ;sion.
Il Go not believe there is anything
substantial in the argument that Il
tive-year extension of government OPP
Grafton would necessarily mean gov
ernr ownership" Mr.. Hines said.
Il do not personally believe in gov
eminent ownership.
Il believe there can be 4 form of
radically reconstructed private own
erShip with such close government
supervision, including government
representation on the boards of direct
Ors, as will give the public and labor
all the benefits of government owner
ship and at the slime time will pre-
serve the benefits of private and self
interested initiative and will avoid
the political difficulties which per-
haps are inseparable from govern
ment ownership
II believe that all the objects which
I think must be achieved to obtain a
permanent solution can be accom-
plished through the creation of 4
comparatively few railroad companies,
which will have capitalization equal
and which will have Il moderate guar
anteed return with the right to par
ticipate moderately in any additional
prifits''
To permit development of Il cOmpre
henSive and permanent solution. Mr..
Hines renewed Mr.. McAdoo's recon-
mendation for five-year extension
of government control. He explained
that if this We're not done, be believ
ed it would be best for all interests
concerned to relinquiSh without wait
ing for expiration of the tWenty-One
month period provided By existing
law
st seems to be unthnkable," he
added. "that any suggestion of early
REIMBURSEMENT should he put forward
as Il leverage for forcing an extension.
l think the entire subject ought to be
determined by the logic of facts"
So far as physical operations are
concerned, he said, there is now no
emergency which calls on the govern
ment to control the railroads. He ex-
planned that the methods adopted by
the railroad administration during the
war now are open to reconsideration
in light Of peace conditions. He added
this had been Mr.. McAdoo's attitude.
Mr.. Hines presented the following
argument for a five-year extension:
- II w.;hriL ssz::rz--rr-ss-v-r-S.---
ment ownership full opportunity to
press their views without being. inf1u
enced by the temporary reaction
against government control.
Remove necessity for undue haste
in solving such a big program as the
future of the railroads.
Stabilize employment and wage con-
dit5nnS, permit prosecution of bis
program of improvements and extern
sions, help to take up the slack in en-
ployment and materials during the
critical period of REIMBURSEMENT.
Protect security holders pending an
ultimate solution.
Minimize the danger of making the
question Il purely partisan
issue, to be considered in an Illogical
manner in the presidential elections.
Early REIMBURSEMENT would not
cause any more chaotic condition now
than later, even under legislation pro-
viding a reform scheme.
Old rates would not go into effect
with cessation of govern
control, and railroad companies would
not be thrown into bankruptcy as has
been feared.