Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-02-03
Hines Does Not Believe
In Government Ownership
But In Close Supervision
CONTINUED from Page ~

control period;
Early REIMBURSEMENT would not
cause n more chaotic condition
now than later, ever under legisla-
ton providing a reform scheme;
Old rates would not go into effect
automatically with cessation of gov
eminent control, and railroad COM
panies would not be thrown into
bankruptcy, as has been feared.
Mr.. Hines went into detail to ex.
plain that he believed the courts and
the interstate commerce commission
would uphold the present level of
rates and that the railroads were un-
duly alarmed over prospects Of fl
nancial disaster in case of their prop
critics being returned to private man.
agement.
More Liberation Urged.
Advising more liberation in dis
cussing the railroad question, Mr..
Hines said:
II think it is a fair prediction that
before, any legislation can actually be
shaped there will be a strong reasser-
ton of the permanent views OF that
part of the public which insists on a
greater degree Of social control Of the
railroads and that this reassertion of
the views now temporarily in the
background is going to defeat the
adoption of any permanent program
in the next two years.
IF this shall be the case, the re-
suit will be that the end of the
twenty-one months period will APP
proach and that there will be no ac-
tual solution at all, n then there
will be an cutlery for an extension of
time Inc in all probability the time
| will then have to be extended"
| A. ~roCorf eofd N6~ IJ;~oe <Lo 49,
fair inference is persistently drawn
that the heavy operating costs are
necessarily due to increased rate Of
wages, whereas they are largely due
to war conditions, and the position of
labor in this matter should not be
prejudiced by forcing a conclusion be-
fore there is time to see the results of
increased wages under peace condi-
tons. Since last yea was under alb
normal war conditions. this year in
wolves readjustment and normal con-
ditions will not come until next year,
he declared, and it will be the middle
of 1921 before a fair view of govern
ment operation "a be obtained.
No plans now before the commit
tee meet the fundamental necessities
Of h permanent solution, said the
director general. Those already pro,
posed, he declared, would perpetuate
existing railroad capitalizations
which he believes were the cause OF
deep-seated suspicion on the part OF
the public and labor and which mus
be corrected before any permanen,
solution a be had.
The present plans, he asserted. in.
clude all existing railroad companies
both those which thrive on low rates
and those which fail on high rates
thus putting the public to a. disad'
vantage through paying too much tt
some and getting inadequate service
A permanent solution, Mr.. Hine'
said. should give the government ant
perhaps labor, participation in ex
cess prohts Of some companies under
standard rates. Plans heretofore
proposed were based on the theor.
that railroads should receive a rea
sonable return, no more and no less
but in actual results, he believed the
return would be inexact and widel.
fuctuating. Failure of the pendin,
plans to meet these fundamental
said Mr.. Hines, will tend to proven
their receiving general acceptance
and will not solve the question salts
factorily. He added that propose,
plans for pooling and consolidation,
will prove illusory because they can
not successfully be made compulsory