Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-02-04
tBy Morning Journa, Special Leased wire)

Washington, Feb. 3.--Exaggerated
complaint against government rail-
road operation, growing out OF nat
ural reaction from wartime patriotic
tension is a psychological factor
which makes it difficult at this time
to develop permanent solution of the
railway problem, Director Hines said
today, in testifying before the senate
interstate commerce committee.
This is one important reason, Mr..
Hines said, why government operation
either should be extended five years.
and time given for calm deliberation
or the roads turned back to private
management before the present TWEEN
ty-one months period expires.
Citing many cases of complaints
against government operation which
he said were based on misapprehen-
sion or failure to understand railroad
practices, Mr.. Hines said:
lines Proposes Remedy.
Apparently every hardship or diff
ficulty connected with the war time
operation of the railroads proves mo-
mentarly to be rega rded as reason
cept prompt turning back of the
railroads to all the railroad COM
panies with new legislation which
really makes no fundamental changes
whatever. I do not believe this state
OF mind will change until there is an
opportunity to look in an understand
ing way at the results of federal con-
troll under peace conditions. There
fnr .ta ,,f ,rix, fai
and reasonable test to federal con-
troll under peace conditions is not
merely to give fair showing to adj
Vocates of government ownership, but
also to give fair showing to the adj
vocates Of any plan other than the
plan of aong back to the old regime"
Mr.. Hines explained that he be-
lieves the best solution would be de-
velopment of a few large railroad
systems, privately owned and operat-
ed under strict government super
vision.
Railroads Suspected.
There can he no solution through
the operation Of the railroads by the
numerous existing railroad corpora
tions with their widely varying finan-
cial structures he said "The deep
Dor that there is serious over-capitali-
zation largely negatives all represen-
tations as to the propriety of any CIV
en- level of railroad operating income.
To perpetuate existing capitalization
means to perpetuate suspicion and un-
rest, and will defeat any plan despite
the other good qualities the plan may
have.
mo plan can be permanently sue
cessful which leaves railroad opera
tions largely with large number of
railroad corporations, some strong
and some weak. So long as this con-
dition continues it will result that on
any given basis of rates and wages.
some railroads will prosper to a great
degree and others will fail.
Profit Sharing Suggested.
''If any plan of private management
is to he successful 1t ought to provide
for the PARTICIPATION of the govern
ment and perhaps of labor in the
profits in excess of some compare
tive'v moderate return
This country has settled down to
the definite conception that railroads
out not to receive any more than a.
reasonable return and also that they
ought not to receive less. Theoretical
" this appears to he a reasonable
definite standard. Practically the
standard is impossible of applieation
unier the propcsed plan of private
management. The logical thing for
the government to do is to ascertain