The sun., 1919-05-29
HINES OPPOSED TO
INCREASE IN RATES
DirectOr-General to Explain
Request for Big Appro-
priation.
FAvORs PRIVATE CONTROL
Five Year Plan Abandoned Be.
cause Of Public Senti-
ment.
Sp,ciol Dsspafch TO TIE Sun.

WARRINGTON, May 2S.-When Director
General Hines goes before Congress In
tho next day or two to argue for the ap-
preparation asked to finance the railroads
he will not urge continued Government
control. The Director General Is still OF
the opinion that a Ave year Government
control would be advisable to give plenty
OF time for permanent solution or the
railroad problem. but he has definitely
abandoned the FIVE year control plan on
the ground that public sentiment Is Tor
a return OF the roads to private opera
ton.
While the Director General has made
no formal statement on the subject. and
is not expected to In advance OF his ap-
pearance on Capitol Hill his views are
definitely known.
II is likewise known that the Direc-
tor General is convinced that the pres
| ent level OF railroad rates in the United
| States is not sufficiently high to meet
| the costs or operation on the present
basis of business. He Is convinced
however that an increase In rates Is not
| advisable at this time because OF the
unsettled situation and the prospect OF
such an increase in business that the
| roads win be scarcely able to carry 1t.
Mr.. Hines will go before Congress
within the next day or two to explain
his estimate OF $1,000. 100000 which mas
been asked for to meet the present STU
| alton. There Is no doubt that the ques-
| ton OF rates. services and costs Will De
brought up at that time.
With regard to the rates Mr.. Hines
takes the position that increases to date
have not been AS great as in any COM
mercial line and he Is convinced thai
had the railroads been under private
control during the war they would have
been bankrupt or the rates would N
much higher than they are now. Rates
he points out, increased 25 per cent
while other prices jumped as much al
| 100 per cent. For this reason he de-
clares freight rates are relatively lower
! to-day than before the war. They like
| wise represent a smaller percentage o.
the cost OF commodities. Therefore thu
! Director General is inclined to reason {
further increase would not deter freigh
movement.
1t was announced to-day that the Wa
Finance Corporation has advanced ;
total Of $17.1l2.600 to the railroads un
der the recent author ization by Congress
| for the extension OF such credits.
| A tabulation complete up TO May l.
| shows advances to twenty-six roads will
the Northern Pacific leading the list o
borrowers with a total OF $4,000, 900
The Baltimore and Ohio and the 1llinoi
Central have each received $1.700.00O
Other borrowers are the Central Rail
road OF New Jersey, s693.6O0; Philadel
phia and Reading, s1.000,000; Lehigi
Valley, $4,000; Boston and Maine
S216,sOO: Buffalo. Rochester and Pitts
burg. SAC. 500; Central Vermont $12S.
500. Chesapeake and Ohio, $4,000
Chicago and Alton, 100000; Chicago
! burlington and Quincy, $3.50, 900 Chi
cago, Rock Island and Pacific. S436.SoO
Delaware and Hudson. $4,000 Hook
ing Valley. 100000; International an
Great Northern. $3s7,2oo; Missouri
Kansas and Texas $4,000: New York
New Haven and Hartford, sl.3l2,OOO
New York. SusQuehanna and Western
500. 900; Pere Marquette, $4,000; Sal
Antonio and Arkansas Pass, $4,000
Spokane, Portland and Seattle, 100000
Virginian Railway, s775,000; Wabash
s976,o Western Maryland. s2lS,6OO.