The sun., 1919-02-04
director General Otherwise
Would Turn Roads Back
at Once.
AGAINST U. s. OWNERSHIP
Would Have "Few" Private
Holders With Close Gov
eminent Regulation.
specid, Despatch TO THE suS.

ship OF the railroads In "a few" corpora
tons and close Government supervision
ard control were recommended to the
Senate Interstate Commerce Committee
to-day as the best permanent solution of
ire railroad problem by Walker d. Hines.
Director General of Railroads.
Pending such solution, Mr.. Hines
urged extension OF the present control
o. the railroads for the Ave year period
advocated by his predecessor, with the
alternative OF an immediate turning back
Of the roads to private operation. The
D!rector-General urged that circum-
stances combined TO make any middle
course such as the holding OF the roads
FOR tventy-one month period in his
Judgment inadvlsable.
Against L. s. Ownership.
Though he advanced arguments ap-
rarently in favor of Government owner
ship OF the railroads and declared that
Government ownership advocates should
have fair opportunity TO prove their
Ease and should get an unprejudiced pub
lie opinion Mr.. Hines came out fatty and
put himself on record as personally op-
posed TO Government ownership.
In lengthy argument In which he
reviewed the advantages and disadvan-
'sEes ot all plans SO far advanced the
plrector-General declared empha tically
hat the day of the old order OF rail-
road ownership and operation was gone
and that he believed In close Govern
meat supervision.
Rate control, he said. was insufficient
10 satisfy the public. because rates high
enough 70 keep the weaker roads in
sound condition that would make pos-
s'tle reasonable service would give the
strong organizations such large return
20 % arouse public feeling and ami
7,osity On the other hand. he said
rates that would give the strong roads
q reasonable return would mean bank
-uptcy for the weaker or an insufficiency
ot service on them.
or all previous plans advanced he
seemed TO favor most the Interstate
Commerce Commissions proposals. He
paid his respects TO the executives and
t5e security owners, and said they had
taken counsel OF their fears in regard
20 immediate return Of the roads. He
argued that their position was not justi-
led by the facts. He defended railroad
labor and said IL had been held under
Unjust suspicion. largely because of the
Propaganda put out by interested parties.
Peril of I'll Month Plan.
Arguing for FIVE year control or i'm
mediate return OF the roads Mr.. Hines
said the morale OF the railroad organ
cations would be affected 10 such an
extent II one or another Of the alterna-
ives were not adopted that the service
- the public would suffer neasurably.
g, time when the people after year
- sacrifice and self-restraint were be-
coming over critical. He said, figur-
atively. that he holding OF the roads
cc- twcnty-one months after peace could
accomplish no end except to give Gov.
eminent control and operation a black
eve.
The rate structure he declared would
rot be affected by immediate return OF
he roads II the rates fixed by the III.
rector General did not hold he said the
Interstate Commerce Commission had
ample power to maintain them. Mr.
Hines said
II believe there can be n form OF radi-
c7lly reconstructed private ownership
with such close Government supervision
'r,luding Government representation on
'fs board Of directors. as will give the
public and labor all the benefits OF Gov.
eminent ownership and at the same
tine will preserve the benefits OF pri-
ate and self interested initiative and
VII avoid the political difficulties which
perhaps are inseparable from Govern
.ent ownership.