Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-02-04
DIRECTOR HINES
Continued from Pace one)

form Of radically reconstructed nri-
vats ownership with such close gov
eminent supervision. including gov
. eminent representation on the board
Of directors. as will give the public
and labor all the benefits Of private
and seN-interested initiative and will
avoid the political difficulties which
perhaps are inseparable from gov
eminent ownership.
! Il believe that all the objects which
l think mus, be achieved in order to
obtain a permanent solution can be
accomplished through the creation Of
a comparatively few railroad compa-
mics which will have capitalization
equal only TO the real vaiue of the
property and which will have a mod
crate guaranteed return with the
right to participate moderately in any
! additional profits"
+. To perrni: development Of CON-
prenensive and permanent solution
! Mr. Hines renewed NJ. McAGoo's
! recommendation for a five-ycar ex-
; tension OF government control and
+; explained that if this were not done.
! he believed it would be best for all
7 interests concerned 10 relinquish gov
. eminent control without waiting for
! expiration Of the 21-months period
7 provided by existing law.
50 far as physical operations Were
| concerned said the director general.
there was now no emergency which
; called On -he government - continue
control Of the railroads. He explained
that the methods adopted by The
railroad administration during tire
war were now open to yeconsidera-
ton in the light If peace conditions,
adding that this had been Mr.. Nc
.tdoo's attitude"
: Nj. Hines presented the follow y, ar
] gunea.s fer a i.re-year extension:
Il. VIII give advocates OF covern-
Inent ownership full opportunity 10
press their views without teng .n:iu-
cnced By the temporary rea ton against
. government control.
! Il. will remove the necessity for IN
due haste in solving such big problem
! as the future o. the railroads: il i'll
: stabilize employment, ana wage oondi-
tons; permit prosecution Of Zig pro-
gram Of improvements and ex,-asions.
~ will protect security holders
Ii vii! minimize the danger Of max
. ing the railroad question purc.y par
,isan issue.
On .he other hand, Mr.. Hines said
tina: il this extension were not made,
, Tie roads should be reiinquished be-
fore expiration Of the q months. He
mad il substance thee explanations:
There is now a reaction from ratri-
Otto tension Of war tunes, Resulting in
{. critical and hostile attitude ny the
public towards government ma2ase-
lncnt and this makes control diff >ult.
!, Proponents OF particular theories Of
railroad operatives are finding in gov
crnn,ent control under abnormal, war
conditions and in the present ''inacle-
, quate and temporary" form arguments
for supportin; their varying theories.
The uncertainty Of the future On the
part Of employees woull increase as the
q months period wou'd draw TO } close.
Twenty-one months il Not enough
improvements, and i: would be hard for
: the government to undertake such
program which woulI not show results
during the control period.
/ Early REIMBURSEMENT wolI No.
, cause any moro Chaotic conditions COW
! than later. even under legislation pro-
! viding a reform scheme
F.! Old rates would not 90 into effect an
t toma teal liz with cessation Cf govern
! nient control and railroad companies
! would not Ne thrown mo banI:ruptcy
as has been feared
! Mr.. Hines went into detail to cxpiain
! that he believed the courts and the in
! terstate commerce commission wtul
uphold the present level Of rates and
, that the railroads v,re undulv alarmed
Over prospects Of financial disaster n
: case their properties were returned Sooa
! 70 private mana cement.
! At present, hn sail the unfair infer
, ence was persstcnt!y drawn that the
! heav: operating cost; were necessarily
| due to increased wages, whereas they
were largely due TO war conditions and
! the position Of labor in this matter
! should not be rrejudiced by forcing
| conclusion before there was time to see
| results Of increased wages under peace
conditions.
No plans now before The committee
! met the fundamental necessities Of 4
, permanent solution, he said