New-York tribune., 1919-06-26
Director Contends Power
Should Remain With the
President Until the Roads
Are Returned to Owners
Financial Mix-Up Feared
Contrary View Is Urged on
Committee by Represen-
tative of State Bodies

WASHINGTON, June 25--Director
General of Railroad Hines, before the
House Interstate and Foreign Com
merce Committee to-day, opposed the
restoration of the rate making power
to the Interstate Commerce Commits
sion and the regulatory bodies of the
state, pending termination of govern
ment operation Of the carriers.
Since che government is responsible
for the welfare Of the railroads, the
Director General thought the rate max
ing power should remain in the hands
of the President and not be given TO
outside bodies, that would base their
conclusions on independent studies
without taking the financial needs of
the railroads as whole into account.
Charles L. Elmquist, president of an
organization of state utilities commits
sions, expressed an opposite view. He
favored the bill restoring the powers
of the Interstate Commerce Commits
sion that already had been passed by
the Senate.
Hearing for Shippers Sought
with the return of peace" he said,
shippers must now be given an op-
portunity to be heard on all rate ad-
vances before the Interstate Commerce
Commission and their state commits
sions. There no longer exists any
reason why the President should set
aside either inter or intra state rates
as he Wills"
Director General Hines said it seemed
to him altogether illogical to deprive
the President of power to initiate
rates at this time.
"The railroads will not remain under
Federal control for any conside BILE
tme." the Director General said. "The
conclusion of peace is near, and pre-
sumaby the operation Of the railroads
in short time will be restored to the
private owners.
under the provisions of the pending
bill the President would be placed
tion that the carriers were in before
the war. Any rates he desired would
have to be submitted for approval to
the Interstate Commerce Commission
as to their .reasonableness. The rate
making power should be left as it now
is during the remainder Of the period
Of government control and this should
apply to intrastate as we'll as to in
terstate business.
Holds Government Responsible
"The intrastate rates are fixed on The
theory of making such rates proper
tionate to the relative cost of inter
and intra state railroad business. Thai
is largely a theoretical matter. 1t Is
difficult to get any two people to agree
upon a formula for that separation.
''If the government remains respon.
sible for the whole situation and il
nevertheless dependent upon a wholly
independent study Of this subject in
any state as to intrastate rates, VIC
have a division of authority in mat
ter in which the responsibility of the
government is single. To my mind, the
sound policy is to give the government
under it's present management of the
railroads, control over all rates.
"This is an emergency and If the
government is without authority ovel
intrastate as we'll as interstate rates
it makes it impossible to carry out the
conception Of Federal control, which
was that the government must dea
with the whole situation.
II am opposed also to the provision