The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-02-03
That Is the UItimatum GiyeI
by Director General Hines.
Says 81 Months Is Not Enough
Time for Test.
AGAINST GOVT OWNERSHIP
Compromise Period Is Asked
For by Railroad Head.
Wants 1t for Years, but There
Is Opposition Felt.

Washington, Feb. 3.-Government
railroad control must be extended for
at least three years or be shelved at
once. That is the ultimatum laid down
today by Walker D. Hines, director
general of railroads.
He proposed a three year extension
period as compromise because OF
bitter opposition in congress to the
recent five year Recommendation Oh
William G.. McAdoO.
In any event, Hines declared, when
he faced the senate interstate COM
merce committee today. the present
twenty-one month limit on govern
ment operation is intolerable. He had
in mind the resolution introduced pS
Senator Cummins to prevent return OF
the railroads to private control before
that limit expires.
Against Government Ownership.
Hines came out frankly against gov
ernment ownership but earnestly ap-
pealed for adoption of a five year test
period: He favors private operatf1n ofitl
by a few companies under pro1lts
guarantee and strict government reg
ula;ion.
"I think a three year extension
would accomplish great deal TO re-
move the difficulties which are inner
ent in the twenty-one months plan
Hines told the senate committee
Even three years would segreSate
and spread out and in part disslpate
the unfavorable and psychological
factors which under the twenty-one
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
Immediately following instead of i'm
mediately preceding the presldehtlal
election.
But" he added, IT believe the five
wear extension would be much better
because it 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.
Would Not Hold Rails.
"Cnless a reasonable extension shall
he granted it will be contrary to the
public. interest to hold the railroads
for the full twenty-one months" Hines
declared.
we had better terminate the con-
troll and so back promptly to the old
system or we should extend the con-
troll long enough to admit of an ade-
quate opportunity to adopt a radical
and new system which will really bring
about a permanent solution"
Unofficial reports at the railroad ad-
ministration. are that unless congress
votes an extension. proclamation will
be issued in March turning the roads
back about June 80.
Fears of railroad executives and
others that prompt return will result
in chaos and financial loss were
secuted by Hines.
I'VE can only assume chaotic con-
dition by assuming the interstate COM
mcrce commission would omit to per-
form its functiC MS" he explained.
Attacks 1. c. c. Proposal.
Attacking the commissions proposal
for increased powers, Hines said pres
ent laws give ample power to pre-
serve existing rates and for adjustinE
them to meet immediate necessities
should government operation be aban-
doned. Pre-war intrastate rates could
he set aside in favor of the higher
ones. Hines believed.
I would advise the president that
any REIMBURSEMENT made ought to be
on reasonable notice and in a due and
orderly manner" Hines said
81 believe that unless companies
thru a mistaken policy themselves
create a needless state of alarm a
reasonable and orderly transition back
to private management could be made
III the next few months without addi
tional legislation as well as it could
under any legislation that is likely tc
be obtained.
Not to Protect Roads.
81 confess 1 can see no reason what
ever why this control should continue
Continued on Page Two