Evening capital news. (Boise, Idaho) 1901-1927, 1919-02-03
Director General of Railroads
Tells Senate Committee 2l-
Month Limit on Government
Operators Is lntoIerabIe.
OPPOSES OWNERSHIP, BUT
WANTS FIVE YEARS. TEST
Urges Private Operation by a
Few Companies Under Profit
Guarantee and Strict Gov
ernmentaI Regulation.
RN RAYMOND cLAppEk.

CIIIIIICIiiQi tiCJliidktOli.
BY RAYMOND CLAPPER.
Washington Feb 3.-C,oyernment
railroad control must be extended for
at least three years or be shclved at
once.
That IL tho nltimatum laid down to-
day by Walker y. Hines, director gen
eral of railroads. He proposed a
three-year extension period s Il eem-
promise because of bitter opposition
In congress to tho recent fve-ycar rec
ommendaton Of William q. McAdoo.
In any event, Hines declared when
he faced the senate interstate COM
merce committee today, the present
p month limit on govrnment opera
ton Is ntolerable lie had in mind the
resolution introduced by Senator
Cnmmins to prevent return of the
railroads 10 private control before that
limit expires
AGAINST u. S. OWNERSHIP.
Hines came out frankly against gov
ernment ownership. but earnestly APP
pealed for adoption OF five-year test
period. He favors private operation
by few companies under q profits
guarantee and strict government reg
ulation.
Il think y three-year extension
would accomplish great deal to re-
move difficulties which arc inherent
IN the 2t-months' plap." Hines told the
senate committee. Even three years
would segregate and spread out and in
part dissipate tho unfavarable and the
psychological factors Which under the
2f-months' plan promise 10 converge
50 ais 70 do the maximum damage to
the public
Also the three year extension would
give opportunity for legislation i'm
medatoly following instead of im-
mediately preceding the presidential
election.
FIVE YEARS BETTER.
But" lie added II believe the five
year extension would be much better
because il would give added stability"
Hines, realizing that this plan faces
widespread opposition among both
parties in congress argued from every
possible angle for its adoption
Unless q reasonable extension shall
be granted 1t will be contrary to the
public interest 70 hold the railroads
for the fun II months. Times declared
I'VE had better terminate the con-
trol and go back promptly TO the old
system or we should extend the con
troll long enough to admit of an ada=
duate opportunity 10 adont 4 radical
md new system which viii really
bring about d permanent solutions
Unofficial reports at the railroad adj
ministration arc that unless congress
votes an extension, a proclamation
will be issued in March tnrning the
roads back about June 80
SCOUTS CHAOS PERlLs.
Fears of railroad executives and
others that prompt return will result
in chaos and financial loss were
secuted by fines
we can only assume 4 chaotic CON
dition by assuming the interstate com
merce commission would omit to per-
form its functions" he explained.
Attacking tho commissions pro-
posal for increased powers Hines said
present laws give ample power 10 pre-
serve existing rates and for adjusting
them to meet immediate necessities
should government operation he ahan-
doned Pre-Nar intrastate rates could
be set aside in favor Of the higher
ones, Hines believed
Il would advise the president that
any REIMBURSEMENT made ought to be
or reasonable notice and in due and
orderly manner" Hines said
NO NEED FOR ALARM.
'I believe that unless companies
themselves create a needless state OF
alarm, a reasonable and orderly tran
siton back TO private management
could be made in the next few months
without additional legislation as we'll
as it could under any legislation that
l. likely to be obtained.
II congess 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
Hines announced his stand on the
question Of government ownership.
i do not personally believe In gov
eminent ownership" he explained.
Il believe there can be a form of
radically reconstructed private owner
ship with such close government su-
pervision. including government rep
presentations on boards of directors as
will give the public and labor all the
benefits of government ownership and
at the same time avoid the political
(Cppfiplod M Do TwnN