The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1919-02-06
SPLITS
MAD0O IDEAS
IN RAIL Plan
Suggests Three Year Period Of
Control as Test--0pposes
Government Ownership Sub
mits Statement to Committee.
By United Press.

railroad control must be extended for
at least three years or be shelyed at
once.
That is the ultimatum laid down
today by Walker b. Hines, director
general of railroads. He proposed a
three-year extension period al a COM
promise because OF bitter opposition In
congress- the recent Ave- year rec
concentration Of VIM. @. McAdoo.
In any event, Hines declared when
he faced the Senate interstate o
merce committee today, the present RI
months limit on government operation
Is intolerable. He had in mind b res
olution introduced by Senator Cum
minis to return the railroads to private
control before that limit expires. Hines
came put frankly against government
ownership but earnestly appealed for
adoption of a five-year test period. He
favors private operation by a few COM
panies under a profits guarantee and
strict government regulation.
Explains His idss.
II think d three-year extension would
accomplish a great deal to remove the
difficulties which are inherent in the
21-months plan," Hines told the SEN
ate committee. Even three O
would segregate and spread out and In
part dissipate the unfavorable and the
psychological factors which under the
81 months plan promise to converge SO
as to do the maximum damage to the
public service.
ALSO the three year extension would
give opportunity for legislation imme-
diately following instead OF immedi-
ately preceding the presidential cleo.
ton
Added Stability.
But" he added, Il believe the five
year extension would be much better
because 1t would give added stability"
Hines, realizing that this plan faces
widespread opposition among both
parties in congress-, argued from every
possible angle for its adoption.
Unless a reasonable extension shall
be granted 1t will be contrary to the
public interest to hold the railroads
for the full 81 months, Hines de-
clared.
I'VE had better terminate the con-
troll and go back to the old system Or
we should extend the control LORI
enough to admit of an adequate opporr
tunity to adopt a radical and new sys-
tenn which will really bring about a per-
manent solution"
Unofficial reports at the railroad ad.
ministration are that unless congress-
votes an extension, a proclamation will
be issued in March, turning the roads
back about June 30.
Question Of Rates.
Fears OF railroad executives and 9th.
ers that prompt return will result In
chaos and financial loss, were secuted
by Hines.
1--WE can only assume a chaotic con-
dition by assuming the Interstate Com
merce commission would omit to per-
form Its functions" he explained.
Attacking the commissions proposal
for increased powers, Hines said pres
ent laws give ample power to preserve
existing rates and for adjusting them
to meet immediate necessities, should
government operation be abandoned.
Pre-war i~ntrastate rate rates could be
set aside in favor Of the higher ones,
Hines declared he believed.
'"T would advise the president that
any REIMBURSEMENT made ought to be
on reasonable notice and in due and
orderly manner" Hines said.
Alarm Only Danger.
Il believe that unless companies,
through a mistaken policy, themselves
create a needless state OF alarm, a
reasonable and orderly transition back
to private management could be made
In the next few months without ad-
ditional legislation as well as it could
under any legislation that is likely to
be obtained.
ar 100000 a-. - $50. ,-Iak
ever why this control should continue
simply for the purpose OF protecting
the railroads from an alleged chaotic
condition"
Oppose Ownership.
Hines announced his stand on the
question of government ownership.
II do not personally believe in gov
eminent ownership" he explained. II
believe there can be a form OF radically
RECONSTRUCTED private ownership with
such cIose government supervision, IN
Guiding government representations on
boards OF directors as will give the
public and labor all the benefits Of
government ownership, and at the
same time avoid the political diff
culties which perhaps are inseparabie
from government ownership"
Nevertheless, Hines said he wants a
fair test made.
1--WE know that q large body Of the
people OF this country have a settled
conviction that this question cannot be
successfully disposed OF except through
government ownership. Arguments OF
government ownership advocates nre
temporarily al discount by reason of
a reaction from all forms OF govern
ment CONTROL this being q. perfectly
natural aftsrmath OF the war;"
Not limo Enough.
Two years is not time. enough for q
fair demonstration, lie said.
No plan can be satisfactory which
permits sxisten @ OF over capitalization
and a large number OF companies, some
strong, some weak, Hines believes.
ANY plan OF private management
ought to prov.S - for participation of
the government and perhaps Of labor,
in the profits in excess of ZONE com
parat.vely moderate returns" lie ex-
p,ainsd.
lie an n srn&ll g~sarnntsedv re-
turn. efficient concerns 10 get part or
profits earn I'd IN excess
Hish operating costs were due to the
war rather than TO high wages. Charges
TO the contrary are unfair to railroad