Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-02-04
NY Asnocia,ohprnss1

WASHINGTON. Feb 3.-D;rcctor-
General Hines. testifying to-day before
the senate Interstate Commerce Com
mittcc for the first time since his ap-
pointmcnt as railroad head. declared he
did not believe in government owner
ship. but in organization Of few big
railway companies subject to close gov
crnmcnt supervision.
~ do not believe there is anything
substantial in the argument that a five
year extension Of government operation
would necessarily mean government
ownership" Mr. Hines said ~ do not
ownership. believe ihcre can he a
form of radically rccons,ructcd orivate
ownership with such close government
supervision. including government rep
rcsentation on tho boards of directors
the benefits of government ownership
and at the same time will preserve the
DC Of private and seifinterested
difficulties which perhaps arc insepa-
rablc from government ownership
WOULD CREATE: FEW
LARGE CORPORATIONs
II believe that all objects which
mink must be achieved in order to OBJ
tain permanent solution can be &C
compa ra,ivciy fe@ railroad con,panies
which Will have capitalization equal
only 70 the real value OF the property.
r.
antecd return with tho right TO par
profits"
To permit development of a co:npre
henslve and permanent solution, Mr.
Hines renewed Mr.. McAdoo's recon-
io coatIo yeg yea extension Of
this. were not done. he believed it would
be best for all interests concerned to
out waiting for expiration of the
t"enty one month period provided by
So far as physical operations arc
concerned, said the director-general
there is now no emergency which calls
OF the F. e ceninIe son ,bs
the methods adopted by the railroad ad-
Ininistration during the war now are
peace conditions. adding that this had
been Mr. McAdoo's attitude.
IiINES'S ARGUMENTS
FOR FIVE-iEAR EXTENSION
Mr.. Hines presented the following
arguments for f1ve-year extension.
1t will give advocates of government
ownership full ,oppor tunity to press
by the temporary reaction against gov
eminent control:
1t viii remove the necessity for un-
due haste in solving such big pro-
gram as the future Of the railroads;
1t will stabilize employment and
big program Of improvements and
extensions, help to take up the slack in
employment and materials during the
II will protect security holders pend
ing an ultimate solution.
1t Will minimize the danger of max
ing the railroad question purely
partisan issue, to be considered in an
Illogical manner. in the presidential
elections.
WARTIME PATRIOTISM
On the other hand, Mr.. Hines said
that II this extension were not made,
the roads should be relinquished before
expiration OF the twenty-one mcnths
tons:
There is now a reaction from pa.
triotic tension Of war times, resulting
in a critical and hostile attitude by the
l nupiic to t9w ,Sis government manage
Mr.. Hines went into detail to explain
that he believed the courts and the
interstate Commerce Commission would
that the railroads were unduly
alarmed oyer prospects, OF financial dis
as1er IN sa case their properties were re-
No plans now before the committee
meet the Fundamental necessities of
general; Those already proposed he
declared. would perpetuatc existing
railroad capitalizations. which he be-
sus:'icion on the part OF public and
labor. and which must be corrected be-
fore any permanent solution can be had
PRESENT PLANS PUT
PUBLIC TO DISADVANTAGES
The present plans, he asserted. in
clude all existing railroad companies
both those which ehrive on low rates
and those which fail on high rates, thus
putting the public to a disadvantage
through paying too much to some and
getting inadequate service.
permanent solution. Mr.. Hines said
should give the government and per,
hapS labor. participation In excess
profits of some companies under stan
har
were based on the theory that railroads
should receive a reasonable return no
more and no less, but in actual results
he believed the return would be inexact
and widely fiuctuatine. Failure Of the
pending plans to meet these funda-
mentals, sal Mr.. Hines, will tend to
ance. and viii not solve the question