Arizona republican., 1919-03-27
Republican A. p. Leased Wire]

PITTSBURG, March 2S-Despite the financial predicament of the railroads, the railroad administration plans to carry out as much of it's improvement program as possible, to keep labor employed and the roads in repair, Walker D. Hines, director general of railroads, declared in an address to- night before the Pittsburg Traffic Club. He asked for more adequate understanding on the part of the pub lic of the problems facing the rail roads during the war and in the inn mediate future, and presented sug sestions for operating roads privately under public regulation as a perma nent solution of the problem. He em- phasized that the ability of the rail road administration to finance itself, in spite of the failure of its appropri- ation. does not mean that it will not need the appropriation as soon as con- gress meets again.
 Work Not To Stop
 Referring to the improvements pro- gram, MT. Hines said:
 Unfortunately the impression has gone out that the railroad admins traitor has decided to cut off all i'm provement work, including additions and betterments and maintenance. This is not a fact What has hap pened is, that we are taking steps to give the railroad corporations full op- portunity to determine whether they should assent to the work which they must finance. It is the intention of the railroad administration to carry forward just as much additional work and betterments and maintenance ot work as possible in order that labor may not be thrown out of employment unnecessarily and in order that the railroads be kept in good repair and extended to meet the needs of the situation
 z. Proposing eventual private opera uon with government supervision, MT Hines said:
 My own view is that a moderate guaranty on capital should be pre- scribed (by the government so as tC give d reasonable assurance to cap. ital, and that there should be a right to participation in any profits made 1T excess of that guaranty, so as to fur nish the needed stimulus 10 private initiative
 U. s. on Directorates
 "I further believe that the govern ment should be strongly represented on the boards of directors and tha these government directors shoul, constitute an important part of tn regulating body which prescribes thu rates, so that this regulating body vii Know, as necessities develop that tn necessities are developing, and will b. able to meet the needs of the situation
 
 needs arise than is possible at present VT do not believe these fundamenta chances can be successfully carrie through except by the construction O comparatively few great railroa corporations each of which will S combine the prosperous and unpros porous roads as to present a fair av craze result, and get away from tn hopeless diversity in earnings whic has existed in the past and upo each of which it will be practicable t have ample governmental represen i tation."
 tn Reviewing government operation ( railroads during the war, Mir Hine said it was important that the publi { understood the accomplishment ( | three great results. First, conflict ( priorities was eliminated and unified ittion of control to prevent serious cor 14gestion. Second, through governmer Fcontrol, railroad labor was given wae increases and improved working cor ditions. Third. the government pro vided for adequate financing of tI roads, which otherwise would hay been almost impossible. None of thes questions could have been dealt wit properly, except under governmei control, MT. Hines said.