The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-02-03
HINES ARGUES
FOR EXTENSION
Does Not Believe Five-Year
Plan Means Government
Ownership of Roads.
ALTERNATIVE-QUIT NOW
New Director General Favors
Close Government Supervis-
ion and Not Ownership.


Washington, Feb. s.-Director-
General Hines. testifying today be-
fore the senate interstate commerce
committee for the first time since his
appointment as railroad head, de-
clared he did not believe In govern
ment ownership. but in organization
of n few big railway companies sub
ject to close government supervision.
II do not believe there Is anything
substantial in the argument that a
five years extension OF government
operation would necessarily mean
government ownership" Mr.. Hines
said. "I do not personally believe In
government ownership. believe
there can be a form of radically re-
constructed private ownership with
such close government supervision.
including government representation
on the boards Of directors, which will
give the public and labor all the
benefit of government ownership ana
at the same time will preserve the
benefits Of private and self-interested
initiative and will avoid the political
difficulties which perhaps are insep-
arabic from government ownership.
II believe that all the objects
which / think must be achieved in
order to obtain a permanent solution
can be accomplished through the Gre
alton of a comparatively few railroad
companies which will have capitali-
cation equal only to the real value
Of the property and which will have
moderate guaranteed return with
the right to participate moderately
in any additional profits"
fHr ftTs,t
concerned, said the director general,
there Is now an emergency which
calls on the government to continue
control OF the railroads. He explained
that the methods adopted by the rail-
road administration during the war
now are open to reconsideration In
light of peace conditions. adding that
this had been Mr.. McAdoo's attitude.
Arguments for Plan.
Mr.. Hines presented the following
arguments for a five-year extension:
II will give advocates of gov
ernment ownership full opportu-
nifty to press their views without
being influenced by the tempo
rarv reaction against government
control.
1t will remove the necessity for
undue haste in solving such bio
program AZ tho future Of the rails i
roads. 3,.s,h
d. will atahilizs. snaplaSmAnt.-
and waue conditions; permit
prosecution Of big program Of
improvements and extensions;
help to take up the slack in em-
pIoyment and materials during
tho critical period of readjust-
ment.
II will protect seeurityhoIders
pending an ultimate solution.
II will minimize the danger of
making the railroad question
purely partisan issue, to be con-
sidered in an illogical manner in
the presidential elections.
On the other hand, Mr.. Hines said
that IL this extension were not made
the roads should be relinquished be-
fore expiration of the twenty-one
months. He made, in substance,
these explanations:
There is now a reaction from patri-
otic tension Of war times, resulting
in critical and hostile attitude by
the public toward government man.
agement and this makes control diff
fcult.
proponents OF particular tIeOIles Oh
railroad operation are finding in gov
ernment control under abnormal war
conditions and of the present "inade-
quate and temporary" form argu-
ments for supporting their varying
theories.
The uncertainty of the future on
the part of the employees would in
crease as the twenty one month pc
riod would draw to a close.
Twenty one months Is not enough
time to complete many extensions
and improvements and it would be
hard for the government to under
take such program which would not
show results during the control
period.
Early REIMBURSEMENT would not
cause any more chaotic conditions
now than later, even under legisla-
tion Drovid ng a reform scheme.
Old rates would not go into effect
automatically with cessation of gov
ernment control and railroad COM
panes would not be thrown into
bankruptcy, as has been feared.