The Washington herald., 1919-02-10
HINES R.R. PLANS.
BARRED ONCE.
New York, New Haven and
Hartford Was Prosecuted
for Use of Same Ideas.

81 wv vi SoIi4S AoSoSs
II Walker ID. Hines. who has sue
ceeded William C. McAdoo. as Di-
rector General OF the American
railroad system. were to find time
to look into the record which tells
of the experience of the New York.
New Haven Railroad Company and
of the prosecution of that company
by the Department OF Justice for
alleged violation OF the antitrust {
law he would discover that some
features OF the proposition which he
has laid before the Interstate COM
merce Committee OF the Senate were
precisely the features which caused
the Department of Justice to-prose-
cute this railroad company. Mr..
Hines is reported as having recon-
mended such reconstruction OF the
railway systems OF the United
States as would establish zones. For
instance-he is quoted as having
mentioned the New England rail-
way systems and TO have said, ten
tatively. that these might be mobil-
ized or reorganized so as to make
New England one OF the contem-
plated zones within each OF which
the railroads are to be constituted
as a single system. Mr.. Hines went
so far as to suggest a name for this
zone. not calling il the New Eng
land zone, but the North Eastern
zone
Nearly twenty years ago the late
J. p. Morgan listened with interest
TO the proposition that the railways
Of New England should be consoli-
dated into a single system. Already
the New Haven Railroad Company
had secured several railroad corpo-
rations which heretofore were inde-
pendent. Mr.. Morgan was quick TO
realize the economic soUndness OF
the proposition. believing that If
there were adequate governmental
regulation and control then d con-
sOlidated New England railroad sys-
tenn would be OF benefit not only to
the railroads but also to shippers
and to communities. Large and va
ried economies would be secured by
the consolidation. The traffic rela-
tions between New England and
that part OF the country west OF the
Hudson and south of New York
would be greatly facilitated. With
the intuitive judgment which char
scterized Mr.. Morgan he accepted
this proposition as sound and he
stood behind President MeIlen, who
undertook to perfect the plan. All
that Mr.. Morgan knew was that the
plan il worked out would bring into
a single system the New England
railroad and that tn" Interstate
Commerce Commission might be re-
lied upon TO prevent any injustice
President Mellen was authorized to
90 ahead and perhaps one Of the
reasons for the failure Of the plan
may be traced to his impetuosity
and zeal and POSSIBLY TO a somewhat
imperious manner which character
ICED his efforts.
Department of Justice said No.
The chief reason, however, for the
failure OF the plan was the action
Of the Department OF Justice. The
New Haven company was alleged to
have violated the Federal statutes.
The department sought authority
from the courts 10 tear the system
into pieces, ultimately restricting il
10 the original New Haven company
with the extensions Of that company
from New Haven to Boston When
Howard Elliott became president he
deemed it the better part 10 hold con-
feTences with the Department of Jus
tiCe with intent 10 avoid. II possible.
litigation. Those conferences resulted
in a proposition that the New Haven
company part with some OF the prop
critics it had secured and as President
Elliott agreed 10 that proposition and
later acted upon it the department ro-
Trained from further prosecution.
Now precisely what Mr.. Morgan
and his associates contemplated d.
rector General Hines earnestly recon-
meuds. II his recommendations are
accepted New England will become
one of the zones and the New England
railways will be embodied in a single
system. Mr. Morgan's view will be
indicated. The experiences OF the
war seem to have taught government
officers the economic soUndness Of the
principle which Mr.. Morgan accepted.
although because he and his associ-
ates did accept it they were prose-
cuted. or the railroad which they rep
resented was prosecuted. by the Fed
eral government.
McAdoo's Good Fortune.
When William c. McAdoo resign
ed his Office as Secretary Of the
Treasury and as Director General
OF the American railroads. his inti-
mate friends in New York spoke
Of this action as having become
imperative because no longer could
Mr.. McAdoo support his family and
begin to accumulate a competence
while receiving a salary OF $4,000
a year. The surmise was that AIr.
McAdoo did not take q leap in the
dark for he hoped to obtain clients
after he had opened law Office in
New York. 1t was presumed that
( he had received intimstions that he
might make profitable professional