The evening Caledonian. [volume] (St. Johnsbury, Vt.) 1918-1920, 1919-03-07
Delay in Return of Roads
Due to no Appropriation
by Congress
NOT DISCUSS QUESTION
Director General Hines Says There
VIII Be no Increase in
Freight Rates

There will be no immediate return
of the railroads to private ownership
as a result Of the failure of Congress
to provide the $3.50, 100000 deficiency
appropriation and because of failure
to extend the period of control five
years, as urged by w. G. McAdoo,
erstwhile Director General. This
( was intimated clearly today in
statement by Director General Hines.
"At the moment,' says Mr.. Hines,
"there is no occasion to discuss the
question of the REIMBURSEMENT of the
railroads. My first purpose is to try
to solve the problem in other ways" ;"
But there will be no increase in
It is apparent that Mr.. Hines has not
definitely solved the financial prob
lem confronting the roads, but be-
lieves it will be possible to meet it.
The Treasury Department., he says,
and the Finance Corporation are CO.
operating in the matter with the ut
most cordiality. He sees no occasion
for alarm. In his statement Mr..
Hines says =
"The adjournment of Congress
without the passage of the railroad
appropriation leaves the Railroad Adj
ninistration confronted with the nee
essity for the adoption of radically
different methods of dealing with its
financial problems than it had con-
templated.
"The Railroad Administration had
felt justified in counting upon the
passage of this appropriation. This
is true because the money asked for
was necessary to meet government
obligations duly incurred and because,
also, it promised to improve and sta
bilize the general industrial situation
through enabling the Railroad Ad-
ministration to go forward confidently
in carrying out its policy as to i'm
provements and also as to mainten-
ance. Confidence in obtaining the ap-
propriation was confirmed by the fact
that the House Appropriations Com
nittee after extensive hearings re-
ported the appropriation favorably
without any dissent, the House pass
ed it by vote of 272 to Is and the
Senate Appropriations Committee af-
ter hearing likewise reported it fav-
orably without any dissent. The rec
ognized urgency of the matter
brought the appropriation before the
Senate for debate, but the debate was
LII hn oH-
journed.
81 approach the matter in the spirit
and with the purpose Of finding ways
! to meet the requirements and to avert
financial embarrassments and indus
trial depression. 1t would be improp-
er however, to minimize the difficult
| ties of the situation, but | believe
that the very difficulties themselves
will result in obtaining patriotic CO.
| operation of all the business interests
! involved, including the railroad corp
ations and equipment companies and
other producers of material and the
bankers.
"At the moment there is no occa-
sion to discuss the question of re-
linquishment of the railroads. My
first purpose is to try to solve the
problem in other ways. am not pre-
pared at the moment to outline spe-
cifc plans because numerous methods
must be devised for dealing with dif-
ferent phases of the subject and each
will require its separate study and
perhaps separate plan of coopera-
ton. But / believe that on the part
of all responsible interests affected
/ there will be prompt response and |
do not believe any one should give
way to alarm.
"There has been no discussion OF
raising rates, either passenger OF
freight, because the money derived
from rates goes into operating reven-
ues, which primarily are not affected
by the present situation. Generally
speaking it will be my object to solve
the problem through financial means
rather than through interfering
with work involving the employment
of labor. l consider it important that
there be no industrial disturbances.
ain connection with necessary fl
nancing which will have to be done
by the railroad corporations, it is the
(Continued on page seyen1