South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-02-03
HINES
WANTS 3-YEAR
CONTROL PLAN
Says u. S. Rule of Railroads
Should be Extended For
Longer Period Or End
ed Immediately.
By United Press:


WASHINGTON. Feb. Govern
ment railroad control must be ex-
tended for at least three years or be
shelyed at once.
That Is the ultimatum laid down
today by Walker -. Hines. director
general Of railroads.
lie proposed three-year exten-
sion period as a compromise be-
cause of. bitter opposition in con-
gress TO the recent five-year recon-
mendation OF William G.. McAdoo.
In any event, Hines declared when
he faced the senate interstate com
merce committee today, the present
2l-month limit on government oper-
alton is intoIerable. lie had in mind
the resolution introduced by Sen.
Cummins TO prevent the return OF
the railroads TO private control be-
fore that limit expires.
Hines came out frankly against
government ownership but earnestly
appealed for adoption of a five-year
test period. He favors private op-
Grafton by few companies under a
profits guarantee and strict govern
ment regulation
Even Three Years Would Help.
Il think a three-year extension
would accomplish a great deal to
remove the difficulties which are in
herent IN the 21 months plan. &"
Hines told the senate committee
Even three years would segregate
aud spread out and i'm part dissipate
The unfavorable psychological fac
ters which under the e1 months plan
promise TO converge so as 10 do the
maximum damage TO the public
service.
Also the three-year extension
would give opportunity FOR legislG-
tion Immediately following instead
IF Immediately preceding the presi-
Gcutial election
But" ne added II believe the
dte-year extension would be much
better because it would give added
stability"
Hides realizing that this plan
faces widespread opposition among
bo.h parties i'm congress. argued
from every possible angle for its
adoption.
AitcrnatcS Are Clear.
Unless "a reasonable extension
SHALL be granted it will be contrary
go the public interest 10 hold the
railroads for the full p months"
Hines declared
we had better terminate the con-
troll and go hack promptly TO the old
system or we should extend the CON
trol Ions enough 90 admit of an ade-
uuate opportunity 90 adopt radical
and new system, which will really
bring about a permanent solution"
Unofficial reports at the railroad
administration are that unless con-
ssress votes an extension. "a proc1ama-
tion will be issued I'm March turn
ing the roads back about June 30.
Fears of railroad executives and
others that prompt return would re-
suIt in chaos and financial loss were
secuted 10y Hines
We cam only assume a chaotic
condition by assuming the interstate
commerce commission would omit 10
perform It's funtionc." ne explained
i Present Powers Ample.
+ Attacking the commissions pro-
pR-aI FOR increased powers Hines
said present laws give ample power
20 breserve existing rates and for ad-
Iusting them 90 meet immediate
nee. .ssities should government oper-
atiGn be abandoned. Pre-war intra-
state rates could be set aside in favor
OF the higher ones. Hines believed.
"I would advise the president that
any reIinQuishment made ought 10
be on reasonable notice and in due
and orderly manner" Hines said.
II believe that. unless the compa-
nies through a mistaken policy them
selves create needless state Of
alarm. reasonable and orderly
transition back 90 private manage
-neut could bc made i'm the next few
months without additional legisla-
fion as well as 90 could under any
legislation that is likely TO be OBJ
ained.
-T confess can see no reason
"a hatever why this control should
continue simply FOR the purpose OF
arotectine the railroads from an al
leeed chaotic condition
Hines announced his stand on the
Question of gov. ernment ownership.
- do not personally believe IN
government ownership" he eN-
n1alued "I believe There can he
form OF radically reconstructed pri-
Nate ownership with such close gov
ornmeut supervision. including gov
,rnmeat representations on boards OF
directors as wilf give the public and
labor an the benefits Of government
ownership and AT the same time
old the political difficulties which
perhaps lre .nsepara1- from gov
ernment ownership"