El Paso herald. (El Paso, Tex.) 1901-1931, 1919-03-27
To KEEP ROADS
IN GOOD REPAIR
Hines Plans Some Improve
ments; Suggests Regulated
Private Ownership.

Pittsburg. Pa, March 27.-Despite
the financial predicament Of the rail-
roads. the railroad administration
plans to carry out as much Of its i'm
Z provement program as possible TO
/ keep labor employed and the roads in
repair, Walker D. Hines, director gem
I eral Of railroads, declared in an ad-
dress last night before the PittsburE
Traffic club He asked for more
adequate understanding on the part
OF the public Of the problems facing
the railroads during the war and in
the immediate future and presented
suggestions for operating roads pri-
vately under public regulation as a
permanent solution Of the problem.
He emphasized that the ability Of the
railroad administration to finance IT.
self. in spite Of the failure Of its ap-
preparation, does not mean that it
will not need the appropriation as
soon as congress meets again.
Proposes Private Operation.
Proposing eventual private opera
ton with government supervision. Mr..
Hines said;
Ny own view is that a moderate
guaranty on capital should be pre-
scribed (by the governor so as TO
give a reasonable assurance TO capt.
tai, and that there should be n right
10 participation in any profits made in
excess Of that guaranty so as TO fur
nish the needed stimulus 70 private
initiative.
Z further believe that the govern
nent should be strongly represented
on the boards Of directors and that
these government directors should
constitute an important part OF the
regulating body. which prescribes the
rates so that this regulating body viii
know, as necessities develop. that the
necessities are developing and will be
able to meet the needs OF the situation
much more nearly at the time the
needs arise than Is possible at present.
Would Limit Corporations.
I do not believe these fundamental
changes can be successfully carried
through except by the construction OF
a comparatively few great railroad
corporations, each Of which will so
porous roads as 10 present a fair aver
age result and get away from the
hopeless diversity in earnings which
has existed in the past"
Explains Money Problems.
Financial difficulties faced BY the
railroads and the railroad administra-
Llon were explained today BY Mr.
Hines in an address at the Pittsburg
chamber Of commerce luncheon.
take this opportunity" said Mr.
Hines. ito try TO remove the impress
sion that the $3.50, 900 appropria-
ton. which was asked OF congress.
was needed TO make up for losses sus-
tained by the railroad administration.
The appropriation was needed and still
Is needed TO enable the government to
carry expenditures. which will be
gradually refunded by the railroad
companies as they are able to finance
their requirements otherwise
I01S Loss 500. 100000.
When the appropriation OF $3.50
100000 shall be made. there viii have
been appropriated for the railroad ad-
ministration a total OF 1880. 600. 600
OF this about 5000. 00O. 600 represented
the loss incurred in the calendar year
1913"
The balance. Mr.. Hines said. repre-
sents funds temporarily tied up by
the government in railroad operation,
distributed roughly as follows:
Working capital, S340. 900. 600
Loans TO be repaid by railroads.
S340. 100000
Estimated loans 10 be made this
year and later repaid, $3.50. 100000.