Bisbee daily review., 1919-03-06
GOVERNMENT WILL
 RETAIN CONTROL OF
 RAILROAD SYSTEMS
Money to Operate Lines to Be Borrowed on Open
 Market

(COntinued from Page Onel
 executive session last week, comment ing on the possibility of the apprO- priatiOns failure The testimony was made public today
 Two Methods Open
 There would be two general ways in which we might attempt to adapt ourselves to this new situation so sud denly created" said MT. Hines tOe--, addressing the conference of gOver- nOTs and mayors. One way would be to cut down expenditures as rapidly as possible in every direction The other way would be to try to resort 10 every possible expedient to prevail on the railroad companies and sthe busi- ness interests affected to borrow the necessary money to enable us 10 so forward with these expenditures, and l am emphatically in favor of the plan which eontemplates financing these matters so we can go forward with the expenditures rather of the pian -- cutting of the expenditures so we can avoid the financing. I am absO- lutely out of sympathy with any policy which contemplates the slow ing down of industries for the purpose of throwing sIuen out of employment l on the idea that thereby the rates r wages may be cut dewn fer the fu- ture.
 Approaching the matter along these lines. it is going to be my policy and with the most cordial co-Opera- tion of the secretary ofsthe treasuFy and of the waa-flRaaee corporation to try to find every way we can to re in1burse tee treasury and the railroad administration through getting the corporations to borrow the money to pay back advances which have been made and which it will be necessary to make to carry out our program
 It is going to be very difficult, but we are approaching it with the de termination that we will make It sue ceef in a very large extent and that we will get a large measure of paJri- otie cooperation from all the interests which are affected
 In a statement, AIr- Hines said:
 -In connection with the cOnsiderG- tiOn of this question. there has been no discussion of raising rates. either messenger or freight, because the mon ey derived rom rates goes into operat- ing revenues which primarily are not a1Iected by the present situation
 Tn connection with necessary fin ancing which will have to be done by the railroad corporations It IS the rule that no such corporate financing Se undertaken except on certificate or the railroad administration and there fore the .railroad sdministratiOl.slE.- q sense acts a clearing house for sticf financing. thus minimizing the Gan- ger of financial cOafuSion-
 Before the senate appropriations committee. Secretary Glass said last week that failure of the measure ap- prOpriating S75O, ,OOO. 900 for the rail roads. would be disastrous and de moraliziHg7
 Tt will create the situation in rail read circles. he said. that vii. amount 10 practical suspension of ac tivities: interfere with the purchasing activities of the administration It ~lli very greatly impair the credit of the railroads The only alternative that see will be to have the railroad go Ou- into the open market and make loans assregstinz nearly S1. .00O 100000 from the banks That condition would re fleet itself upon the Liberty loan, and T think in a disastrous way
 NIT Hines expressed similar views before the committee IL was eN- psained today however. that with new srransements for financing the TOacS- the pessimistic views expressed then do not necessarily hold now