Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1920-02-29
Properties Valued at 20
Billions Going Back to
Owners With Uncle
Sam $3.50, 900, ,OOOOut.
Hines Enumerates Bene-
fits Of Unified Opera
tons During Control
by Government.

Washington, Feb. 2s-at 1901 a. m.
Monday the government will hand over
to their owners 100000 miles Of main
line railroad and terminals and equip
ment, valued at approximately 10000.
100000, over which its direct authority
has been extended since December IS.
= 1917.
The properties will go back. leaving
the government with deficit of S715.-
100000 for its twenty-six months Of
operation But while the deficit appear
ed large. federal operation has cost the
public considerably less under the condi-
tlons. through rates and taxes than
would have been the case under private
control Director General Hines de
ciared in a resume of government man
agement
Mr.. Hines said he believed that the
nation, and railroads as well. gained
benefits of lasting character from the
period of unified operation. In addi-
fion to betterments which he believed
had been accomplished, Mr.. Hines said
the rail lines were in position to bet
ter operate their properties and 70 i'm
prove facilities. His statement also
dealt with the results directly obtained
through operating the roads as unit
Feats u S. Control Scored.
at made practicable a war trans
portation service which could not other
wise have been obtained he said. Its
unification practices have increased the
utilization of the inadequate supply of
equipment so that exceptionally large
transportation service has been per-
formed in the busy periods Of 1919 with
a minimum of congestion. it met the I'M
precedented coal strike in Il way which
private control could not have done, and
absorbed heavy financial loss on that
account which would have proved highly
disturbing to private control; it provided
more additions and betterments and
equipment than private control could
have provided during the difficult I'll
nancial situation of war time; it dealt
fairly with labor md gave it the bene-
fit of improved working conditions
which were celarly it's right; it not only
did not cost more than private control
would have cost during the same period,
but cost considerably less on account
of the economies growing out Of unfit
cations. and the total burden on the
public-through rates and taxes-on
account of railroad costs, was substan-
tally less than would have been neces-
sary if the railroads had remained in
private control and rates had been rails
ed enough to preserve credit
Sentiment no Longer Hostile.
He declared the company officials re-
sumed direction of their properties un-
der 1.-The most favorable possible condi-
tions of public sentiment" They also
may lay plans for the future, he said,
and put into effect permanent organiza-
tions, things the railroad administra-
tion could not do because of uncertain
tiles of IFS tenure, and for lack of which
the work had been conspicuously and
progressively embarrassing"
Fiscal Task for U. S. Remains.
The railroad administration will still
have d definite work to do after the
roads are returned. In addition to pro
viding transportation service il has
been charged with administration of
contractural relations between the
government and the roads, Mr.. Hines
explained. The government was obi
gated to pay S917 100000 annual rent
al to the corporate owners. This and
the other fiscal relations, which involved
the purchase of great quantities of sup
plies and equipment, will require q con
tinuation of part of the railroad ad-
ministration indefinitely. Mr. Hines,
however, expects to be able to turn over
a virtually completed task shortly
after May /.
Go Back in Fair Condition.
Answering directly assertions that
the roads would be returned wrecked"
Mr.. Hines declared they would be re-
stored in condition which compares
favorably' with that in which they were
taken over. and in his opinion. in better
shape to meet demands on them than
they would have been after the two
such strenuous years under private
management.
The administration, he said had
made every effort to Oh .erve the CON
tractural obligation . maintain the
properties in substantially as good con
dition as it received them. He pointed
to the expenditure of approximately ST.
2OO,OOO,O0O for improvements, equipr
ment and rebuilding as proof Of this.
The railroads will 60 back to private
control with important wage demands |
pending, but the same condition OBJ |
tanned when the government assumed |
direction, Mr.. Hines pointed out, add |
Ing that machinery will be set up I
through the railroad bill or through BIZ
partisan and voluntary action to adjust /
differences. /