The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-02-03
PRIVATE RAIL
OWNERSHIP IS
ADVOCATED BY
new DIRECTOR.
Five-Year Extension Of Time
Does Not Mean Govern
ment Ownership, Hines De-
clares Before Committee.
PROMPT ACTION NEEDED
(By Associated Press)

General Hines, testifying today before
the senate interstate commerce COM
mittee for the first time since his ap-
pointment as railroad head. declared
he did not believe in government own
ership. but in organization of a few
big railway companies subject to close
government supervision.
II do not believe there is anything
substantial in the argument that a
five year extension of government op-
Grafton would necessarily mean gov
ernment ownership" Mr.. Hines said.
81 do not personally believe in govern
ment ownership. / believe there can
be form Of radically reconstructed
private ownership with such close gov
ernment supervision, including govern
ment representation on the boards OF
directors, as will give the public and
labor all the benefits Of government
! ownership, and at the same time will
preserve the benefits of private and
self-interested initiative and will avoid
the political difficulties which perhaps
are inseparable from government own
ership.
"I believe that all the objects which
think must be achieved in order to
obtain permanent solution can be
accomplished through the creation OF
comparatively few railroad compan-
les which will have capitalization
equal only to the real value of the
property and which will have mod
crate guaranteed return with the right
to participate moderately in any addi-
tional profits
Wants FIVE Year Extension.
To permit development of COM
prehensive and permanent solution,
Mr.. Hines renewed MI. McAdoo's rec
ommendation for five-year extension
Of government control and explained
that Il this were not done, he believed
/ It would be best tor all intefeat6 con-
cerned to relinqui1h government con
troll without waiting for expiration OF
the II month period provided by ex-
listing law.
"It seer1s to be unthinkab1e," he
added, that any suggestion of early
REIMBURSEMENT should be put forward
as leverage for forcing an extension.
| think the entire subject ought to be
determined by the logic Of facts"
Discussing the reasons for taking
more time for considering legislation
he said:
"A very strong feeling prevails that
this question Is being pushed now by
the railroad executives because they
feel that going is particularly good
and that they had better make private
management hay while the antfgov-
ernment ownership sun continues to
shine do not believe a solution in
this spirit is going to satisfy the pub
lic"
Viii Stabilize Conditions.
So far as physical operations are
concerned, said the director-general.
there is now no emergency which calls
on the government to continue con-
troll of the railroads. He explained
that the methods adopted by the rail-
road administration during the war
now are open to reconsideration in
light OF peace conditions, adding that
this has been Mr.. McAdoo's attitude.
Mr.. Hines presented the following
arguments for five-year extension:
1t will give advocates of government
ownership full opportunity to press
their views without being Influenced
by the temporary reaction against gov
ernment control;
1t will remove the necessity for ur-
gram as the future of railroads.
1t will stabilize employment and
wage conditions, permit prosecution of
a big program of improvements and
extensions, help to take up the slack
in employment and materials during
the critical period of reimbursement; !;
Protect Security Holders.
1t will protect security-holders rG:ld-
ing an ultimate solution;
1t will minimize the danger of max
ing the railroad question a purely par
tisan issue, to be considered in an
i illogical manner, in the presidential
elections.
On the other hand, Mr.. Hines said
that if this extension were not made,
the roads should be relinquished be-
fore expiration of the 21 months. He
made in substance these explanations:
There is now reaction from patri-
otic tension of war times, resulting
in a critical and hostile attitude by
the public toward government man
agement and this makes control diff.
ficult;
Proponements of particular theories
of railroad operation are finding in
government control under abnormal
war conditions, and of the present
inadequate and temporary" form, ar
guments for supporting their varying
theories;
The uncertainty Of the future on
the part of employees would increase
as the 81 months period would draw
to a close;
Twenty-one months is not enough
time to complete many extensions and
improvements and 1t would be hard
| for the government to undertake such
a program which would not show re
suits during the control period;
| Early REIMBURSEMENT would not
cause any more chaotic condition now
than later. even under legislation pro
| viding reform scheme;
No Danger OF Bankruptcy.
Old rates would not go into effeci
automatically with cessation Of gov
ernment control. and railroad compan
Continued on Page Nine.)