Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-02-03
HINES IS OPPOSED
TOU.S. OWNERSHIP
Rail Director Favors Close
Government Supervision,
He Tells Senators.
IND0RSES FIVE-YEAR PLAN

Director General Hines, testifying
today before the Senate interstate
commerce committee for the first time
since his appointment as railroad
head, declared he dill not believe in
government ownership, but in organ
ization of a few big railway com
panies subject to close government
supervision.
Il do not believe there is anything
five-year extension of government
operation would necessarily mean
government ownership" MI. Hines
said Il do not personally believe III
government ownership. believe there
can be form of radically recon
structed private ownership with such
close government supervision, includ :
ing government representation on the
boards of directors. as will give the
public and labor all the dement's OF
government ownership and at the
same time will preserve the benefits
of private and self-iuterested initla-
culties which perhaps are inseparapie
from government ownership
For a Few Big Companies.
.T believe that all the objects which
I think must be achieved in order
tn obtain a permanent solution can be
accomplished through the creation of
a coufparatiyeIy few railroad COM
icb will have CONTAMINATION
equal only to the real value of the
property, and which Will have a MOD
crate guaranteed return, Win 'ne
right to participate moderately III any
additional profits
To permit development of a COM
prehensive and permanent solution.
Mr.. Hines renewed Mr.. McAdoo's rec
ommendation for a fiye-year extension
of government control, and explained
that if this were not done, he be-
lieved it would be best for all inter-
ests concerned to relinquish govern
ment control without waiting Tor
expiration of the twenty-one-m month
period provided by existing law.
"It seems to be unthinkabie, he
added. "that any suggestion of early
REIMBURSEMENT should be put forward
as a leverage for forcing an exten-
sion. think the entire subject ought
to be determined by the logic OF
facts"
Reasons for Taking Time.
Discussing the reasons for taking
more time for considering legislation.
a very strong feeling prskails that
this question is being pushed now by
the railroad executives because they
feel that the going. isIparticulariy
good and that they had better make
private management hay while the
anti-government ow wneYship sun con-
-tinues to shine / do not believe So
lution in this spirit is going to sat
isfy the public"
SO far as physical operations are
concerned said the director general,
there now is no emergency which calls
on the government to continue control
Of the railroads. He explained that the
methods adopted by the railroad ad-
open to reconsideration in light of
peace conditions. adding that this had
been Mr.. McAdoo's attitude.
Arguments for Five-Year Plan.
Mr. Hines presented the following
arguments for fve-year extension:
It will give advocates of government
their views without being influenced
by the temporary reaction against
government control.
1t will remove the necessity for un-
due haste IN sowing Such Dig pro-
gram as the future of the railroads.
1t will stabilize employment and
wage conditions, permit prosecution of
a big program of improvements and
extensions, help to take UP the slack
in employment and materials during
the critical period of readjustment.
II will protect security holders pend
ing an ultimate solution.
II will minimize the danger of max
ing the railroad question a purely par
tisan issue. TO be considered in an il
logical 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
months. He made in substance these
explanations:
Reaction Now Being Felt.
There is now reaction from pa
trfotic tension of war times. resulting &
in critical and hostile attitude by
the public toward government man
agement and this makes control diff
cult.
D-ororapfS Of nartjcutar fhasr;ea