New-York tribune., 1919-02-06
Transfer Without Serious
Loss Is Held Possible by
Summer or Early Fall
Rental Debt Is a Factor
Government Now Owes the
Carriers $462, $4,000,
Tells Senate Committee
.Neao York Tribune
WASHINGTON Bureau

NeaO Yort Tribune
Washington Bureau
WASHINGTON. Feb. 5. - Of the
S9oO,00O000 owed BY the government
to the railroads for rental of their
properties during the last year of Fed
eral control, only $253,277 800 has been
paid. There is still owing the railroads
for 1918 approximately $3.50, 100000.
This fact was brought out to day dur
ing the cross examination of Walker D.
Hines, Director General of Railroads.
before the Senate Interstate Commerce
Committee, which is considering the
Admin lnistration's demand for five year
extension of Federal control of rail
roads
1t was brought out also that the War
Department has for many months owed
the railroad administration an unpaid
account of SSl.S89, 600 for transpol ia
tlon of troops and military supplies.
From this S650,o0O 900. Mr. Hines de-
clared, there could be wiped off what
the government has lent the roads for
lettcrments and extensions out OF the
S5o0,00o,000 revolving fund, and also
certain other deductions, which. Mr.
Hines said, would leave the net bal
ancc still owed to the roads apDroxi-
mately 1881, 100000
Return This Year Possible
period of Federal control. as desired,
Mr.. Hines told the committee, it was
his thought that the roads could be
turned back to their owners with out
serious loss to them by next summer
or early fall. The consideration which
would determine the date, he said, was
largely the financial status of tho roads
at the time. And it was admitted by
HIM that the question of what the gov
crnment owes the roads would figure
largely III the equa~ion.
Both Democratic and Republican
members of the committee took oc-
casion to make plain their hostility to
the five year extension proposal.
at seems to me- asperted Senator
Fomerene, of Ohio, Democrat, chat
when the Director General of Rail
roads come before this committee
without any we'll defined plan of his
o''a own and asks Congress to turn over
$50 100000 900 worth of railroad prop
erty to him for further period of
experimentation, it is putting up to
Congress very great respons biity."
ou say you, are opposed to gov
ornment ownership" observed Senator
Nc Lean, of Connecticut, Republican
and himself a very strong opponent of
government ownership, "yet | have OBJ
served that every man who is IN IA
Vor OF government ownership is in
favor OF your proposal to extend the
period of Federal control to five years.
AS have overheard their opinions.
If we extend the period of Federal con-
troi to i've years they believe CON
dltlons will arise before the expiration
of that period which practically will
compel the government to take per-
manent possession and title to the
properties"
Opposes 81 Months Period
"As | look at it, and as the Presi-
dent must look at it," said Mr.. Hines
in response to Senator Pomerene, cit
Is the function of the director general
to operate the roads so as to furnish
the public the best possible service
during the period of government con-
troll. Looking at it. from that stand
point, my idea is it would be better
to turn back the roads as soon as
practical rather than confne the
period of Federal control to twenty
one months. If Congress does not
want to turn them back promptly then
| say extend the period in order to
permit Congress a fair opportunity
to measure the results of government
operation and 10 escape the cumula-
tive embarrassment which would re-
suit if the period Of Federal control
was brought to close in the midst
of a Presidential election"
Senator Pomcrene Whether you ex-
tend the control to 1920 or 1924 you
viii face the prospect of returning the
roads in the midst Of a political cam
paign. And whatever YOU dc you can
be sure the question is going to figure
prominently in the 1920 campaign. You
can't escape it by postponement
Senator Smith (Democrat) What |
understand Mr.. Hines to mean is this:
That if Congress is going to address
itself to the enactment Of legislation
which will radically alter the system
of railroad regulation it cannot per
feet that legislation in twenty-one
months.
MIR. Hines-Yes that is substantially
my idea.
noE