Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-02-03
HINES DECLARES
AGAINST NATION
KEEPING ROADS
Director General Favors Or
ganization of Few Big Com
panies Under Supervision

Washington, Feb. S.-Director
General Hines, testifying to-day be-
fore the Senate Interstate Commerce
Committee for the first time since
his appointment as railroad head,
declared he did not believe in gov
government ownership" Mr.. Hines
ization of a few big railway COM
panies, subject to close government
supervision.
Il do not believe there is anything
substantial in the argument that a
tive-year extension of government
operation would necessarily mean
government ownership. I believe
said. Il do not personally believe in
government ownership. beliebe
there can be form of radically re-
constructed private ownership with
such close government supervision,
including government representation
on the board of directors, as will
give the public and labor all the
benefits of government ownership
and at the same Will preserve the
benefits of private and self-interest-
ed initiative and will avoid the
political difficulties which perhaps
are inseparable from government
ownership.
Il believe that all the objects
whic hi think must be achieved in
order to obtain a permanent solution
can be accomplished through the
creation of a comparatively few rail-
road companies which will have
capitalization equal only to the real
value of the property, and which
VIII have moderate guaranteed re-
turn with the right to participate
IN any additional profits
F'avors McAdoo Plan
TO permit development of a COM
prehenslve and permanent solution.
Mr. Hines renewed Mr.. McAdoo's
RECOMMENDATION for a five-year ex-
tension of government control and
explained that if this were NOT dona
ne believed it would be best for aIi
interests concerned to relinouish GOV.
erhment control without waiting for
expiration of the twenty-one month
PERIOD provided by existing law
discussing the reasons for tak;ne
he said: iatioh'
very strong feeling prevaiIs
.hat TINS question is being pushed
no" oy the railroad executives he
cause they feel that the sgo;no, =
particularly good and that theY baJ
peter make private manaeoraar,.
nay while the anti-governmen nr,n
eFShip continues to shine. 7 do pn+
peneVe solution in this spirit is
going to satisfy the public i" -
NO Need For Government Con,,o,
% Idr as physical operations arc
concerned said the director genera
mere is now no emergency -wb;ob
oon4 s on the government to Continue
~ ntLoi t ot the railroads. He explain
so., enal the methods adopted by the
@ ra,,ioau administration during the
T., ~ are open to reconsideration
IN tne ilght of peace conditions add
Ing that this had been Mr. SIn aoo
attitude. .-d1Aooo' 8
Mr.. Hines presented the fo,,o..
arguments for a five-year extans.aIs ,iIs
IL VIII give advocates of eor,a...
ment ownership full opportunitv ~
gless their views without beinc .,
nuenceo by the temporary reao.;a,.
against government control.
iC VIII remove the necess;.r e..
undue haste in solving such . III
problem as the future of the rs,I
roads; 1t will stabilize emplovm%ant %
ana wage conditions; permit nrosa
cution OF a big program of his Use ;ss
proVements and extensions, helm -
take up the slack in employment snS ~
materials during the critical nerins s
of readjustment. period
~ VIII protect security holders
pemuhs an ultimate solution.
ii.
WIN minimize The danger of
making the railroad oues5in,,
purely partisan issue. TO he conn
ed in an illogical manner s.s ,
presidential elections. ~ the