The sun., 1919-03-27
HINES SAYS ROADS
WILL HELP LABOR
q
Tells Pittsburg Traffic Club
Improvements Are to Be
Carried Out.
VIEWS ON PEACE CONTROL
DirectOr-General Believes in
Creation of Gigantic Sys-
tens Under Joint Rule.
VIEWS ON PEACE CONTROL

PITTsBURG, March 26.-Desptte the
financial predicament Of railroads the
Railroad Administration purposes to
barry out as much of its improvement
programme as possible to keep labor en-
bioyed and roads in repair. Walker d.
Hines, Director General OF Railroads. 80
Announced An an address tonight before
lhe Pittsburg Traffic Club.
He asked for a moro adequate under
standing on the part OF the public Of
problems facing the railroads during the
war and in the immediate future, ana
presented suggestions for operating roads
privately under public regulation a. a
the railroads. He emphasized that tho
sbility of the Railroad Administration to
finance itself in spite Of the failure Of its
appropriation does not mean that It will
bot need the appropriation as soon an
Congress meets again.
Referring to the improvement pro-
Eramme, Mr.. Hines said:
! Unfortunately the impression has
gone out that the Railroad Administra-
zion has decided to cut of all improve
nent work, including additions and bet
kerments and maintenance. This Is not
, fact What has happened Is that we
are taking steps to give the railroad cor
porations full opportunity to determine
whether they should assent to the. work
which they must finance.
wfnKeep Labor Employed.
"It is the intention Of tho Railroad
Administration to carry forward just as
much additions and betterments and
maintenance work as possible in order
that labor may not be thrown out of en-
ployment unnecessarily and in order that
the railroads be kept in good repair and
extended to meet the needs OF the situa-
tion."
Proposing eventual private operation
with Government supervision, NIr. Hines
bid:
My own view is that a moderate
guaranty on capital should be prescribed
(by the Government) 30 as to give
reasonable assurance to capital, and that
there should be a right to a participa-
fion In any profits made In excess Of
that guaranty so as to furnish the
needed stimulus to private initiative.
II further believe that the Government
should be strongly represented on the
boards of directors and that these Gov
eminent directors should constitute an
important part Of the regulating body
which prescribes the rates SO that this
regulating body will know as necessities
develop that the necessities are develop
sng and will be able to meet the needs
OF the situation much more nearly at
the time the needs arise than Is possible
At present.
Suggests Nam m 9th Combines.
Il do not believe these fundamental
changes can be successfully carried
Through except by the construction of
comparatively few great railroad cor
porations, each of which will so COM
nine the prosperous and unprosperous
roads as TO present a fair average re-
suit and get away from the hopeless
diversity in earnings which has existed
IN the past; and upon each OF which II
will be practicable to have ample Gov
ernment representation"
Reviewing Government operation of
railroads during the war. Mr.. Hines said
~ was important that tho public under
stand the accomplishment Of three great
results. First. conflict of priorities was
eliminated and uniication of control pre-
vented serious congestion. Second
Through Government control railroad
labor was given wage increases and Inn
proved working conditions Third. the
government provided for ADEQUATE
financing OF the roads which otherwise
would have been almost impossible.
none OF these questions could have been
dealt with properly except under Gov
ernment control said Mr.. Hines