Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-02-03
Hines, Opposed to Gov
ernmsnt Ownership,
Gives a Solution.

Washington. Feb. 3-Director
General Hines, testifying today be
fore the senate interstate commerce
committee for the first time sinca
his appointment as railroad head,
declared he did not believe in gov
eTnment ownership, but in organ
ization Of a few big railway com
panics subject TO close government
supervision.
Il do not believe there is any
thing substantial in the argument
that fve-year extension of gov
ernment operation would necessar-
lily mean government ownership"
Mr.. Hines said. Il do not person
ally believe in government owner
ship. / believe there can be a form
Of radically reconstructed private
ownership with such close govern
ment supervision, including gov
ernment presentation on the
boards Of directors, as will give the
~blic and labor all the benefits of
government ownership, and at the
same time will preserve the bene-
fits Of private and self-interested
initiative and will avoid the polit-
teal difficulties which perhaps are
inseparable from government own
ership.
Offers Solution.
'I believe that all the Objectives
which ! think must be achieved in
order to obtain a permanent solu-
tiOn can he accomplished through
the creation of a comparatively few
railroad companies which will have
capitalization equal only to the real
value Of the property and which
will have a moderate guaranteed
return with the right to participate
moderately in any additional prof
it's"
To permit development Of a com
prehensive and permanent solution
MIR Hines renewed Mr.. McAdco's
recommendation for a five-year ex-
tension Of government control and
explained that If this were not done
he believed IL would be best for all
interests concerned to relinquish
government control without wait
ing for expiration of the 21-mont1
period provided by existing law
Rail Men "Making Hay"
Discussing the recommendation
for taking more time for consider
ing legislation, he said:
"A very strong feeling prevails
tbSt this question is being pushed
,~lIOw by the railroad executives be
cause they feel that the going is
particularly good and that they had
better make private management
hay while the anti-government
ownership sun continues to shine
I do not believe a solution in this
spirit is going to satisfy the pub
lie"
So far as physical operations are
Oncerned. said the director gen
eral, there is now no emergency
which calls on the government to
continue control Of the railroads.
He explained that the methods
adopted by the railroad admins
tration during the war now are
open to consideration in light of
peace conditions, adding that this
had been Mr.. McAdoo's attitude.
Urges More DeIiberatiOn.
Advising more deliberation in
Mr. Hines said:
4 think it is a fair prediction
Nat before any legislation can
ECLuchtAF tC ol4dEGAt INCL Z " III NC q
strong reassertion of the perma-
nent views of that part of the pub !
lie which insists on a greater de-
gree of social control of the rail-
roads and that this reassertation of +
the views now temporarily in the /
background is going to defeat the /
adoption of any permanent pro- |
gram in the next two years.
. - ho
suit will be that the end of the 81 |
months period will approach and |
that there Will be no actual sOlu |
ton at all and then there will be !
an outcry for an extension of time +
and in all probability the time will .
then have to be extended.
Expense Not Due to Wages.
AT present" said Mr. Hines. the !
unfair inference is perhaps drawn
hat the heavy operating costs are
necessarily due to increased rates
Cf wages. whereas they are largely /
due to war conditions, and the po-
sftion OF labor in this matter should /
not be preiudiced by forcing a con-
ciusion before there is time to see
the results of increased wages un-
der peace conditions. Since last
year was under abnormal war con-
Gitions this year involves readjust-
ment, and normal conditions will
not be until next year" he declared
"and it will be the end of 1921 be-
fore a fair view of government op-
Grafton can be obtained
<Says No Plans Meet Problem.
No plans now before the COM
r7littpe meet the fundamental neces-
stiles Of a permanent solution, said
the director general. Those al
ready proposed. he declared. would
perpetuate existing railroad capi-
talizations, which he believes. were
The cause of the deep seated an
ripathy on the part of public and
labor. and which must be corrected
before any permanent solution can
Re had.
The present plans, he asserted,
include all existing railroad COM
pauies, both those which thrive on /.