The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-01-30
HINES ADVOCATES
DIVISION OF RAI /.
EARNINGS IN FU1UA :
SAYS WEAKER LINES s.
MUST BE PROTEcIt3
Prime Motive Must Be Ppte6
tion Of the Public
Interest - ,.s5:s,

LOUISVILLE. Ky. Jan. 2S.--WAlt4lxs
D. Hines. director general OF ralfoA E;
in an address before the Transpoy!Att -
club here tonight urged the neca1stUs9ss
road corporations above a reasons "
return. in order to protect the Me1
against excess earnings OF very 49,
porous railroads. and In order TO I'M
a fair return to all railroads.
"Those who oppose this plan So1m s
assume that IL will operate Al an
couragement upon private capitAl, - 8
Mr. Hines. They seem TO assume e
il this plan Is not adopted there =:
be no disbursement on private g0Re
tai. but they should remember the ~
couragements which have existed h.s
tofore. The real question Is MnetlnS
a plan shall be adopted which win -
protect the public interest and Iea,eas
adopted which will fail to do eitAs
with any degree Of satisfaction. q t;sii.SSsss
Compulsory Consolidatio1.
Mr.. Hines declared his belief thAk
less the railroad problem at the preu
time is dealt with I'm a bold ane ee4
fective way" the return to private 411l3s3
agemcnt after federal control win
wholly Disappointing" .H
The director general also ursed I,
compulsory consolidation OF the
road systems Of the country INTO lfeHs;
large systems. and suggested the D1ts.eI
Iteration Of the pub bile and labor u ~
management Of the railroads. aee.
General Leonard Wood. who II vistftnos;
Louisville on an inspection trip N1DN
another speaker at the banquet.
In his discussion Of the railroad
question and the reorganization %
after government control. Mf. HaF &
said: sslsz@ysssf
ON the basis Of my twenty-six yseI4g
experience with railroad rerulatton. =
~ ha ~
public service. I wish to expree0 ~
views as to some of the fund.mSut1l
necessary to a successful solution.
Conditions Of 1917 "a
i'Intelligent consideration Win *
greatly aided by recalling tho eoadlkl1e
OF railroad regulations as they extleS 3
in 1917 and as they will aeaInl e4ls
under private control unless funNen1
tally changed by new legislstioa. gs.s's:ss :;
"In 1917 railroad executives W1cA 1N3 8
foundly discouraged az to the cond1Is&s IS
of railroad regulation. They foun2 AASs
treme difficulty In proving TO ne u
their absolute necessities In the W44 10
Increased rates and they had no Gett&
factory method Of dealing with The ht
or problems which were constantly ~
coming more pressing. Both ratA1s91E 4
service were being regulated by AH4~H q
and state legislative bodies and c6infts n
sions: Common action was mucA en1 u
( the labor organizations than ik.JNl
Nr the railroads. The result WA IS
p,-AI.d private management 0ls 1a &
railroads was regarded BY the 81
tir-- themselves as largely dESk69tyNf,
-eruuse they felt that to q gre4 exto u
Of their hands. s,s
The question now Is shall the zntleS
roads be returned 70 substantiellSS4I @ g
discouraging in 1917 or shall ch16feyI
be made sufficiently fundamental . -
move the difficulties upon this QuesttbN
I wish to ofer the results OF my lONs
Broadly. / believe that unIess tiSS1S
matters be dealt with in bold and sexsS
fective way to return to private M49SE
agemcnt will be wholly disappoinfs s.
liberal regulation Of the railroads viz
be practicable unless provision ID I6o11 =,
FOR the, appropriating. for tho bcn1Ak Z
the public interest: an important. GRf {;
Of the excess which any railroad u
pany may earn over q clearly reaOOofs
able return. If It is clearly undesatn6 :
that an important part Of the return 90
return Will insure in some proper Vktssf
TO the public benefit. these obSEsc5S6e
to satisfactory treatment Of the rQt6S:
problem VIII disappear. s.ss s3l
Protective 1O1ervA 9ssss
The excess earnings thus approp191
ted for the public benefit ought tn. ~
used largely for the creation Of rseoVVe04 4
10 protect the railroaad situation ~
unfavorable years and thus an alfN.lS
tional element Of stability will be Gix1E
to the situation.
The readjustmoEt Of rates It thSE
present time to establish the credit OF Is
nll tho railroad companies operating iesss
dependently and on their separate ~ ssi
sponsibilitieS will be an exceodinGfS<j q
difficult matter because the ahuofiH2SsI
conditions for the past two years maltt
1t exceedingly difficult to draw aR2 8
satisfactory conclusions as to the actn6hf
earning capacity of the railroads ct ISSk.
moment. The public Is also lik0lY f41
come TO realize that under q continn6et ~
Unified control a large increase In fUd6G& e
wiuld not be necessary. q .yftFrssss
Il regard IL as a very important pHRfS
Of this plan to leave to the railroad c0tl}e
panies sufficient proportion Of the 81 =
cess earnings to stimulate their eEkkE
cheney in the public interest but beyoff2s.
this point i believe the plan OF dfyIslott s
Of earnings which l propose is essentInf
TO the due protection both of the Pub
lie interest and Of all legitimate eles
ments OF private interest jsEs
II have heard it seriously urged thhl.S
the old system ought to be kept -.kreE-
cause We are familiar with II. Tkkk{
would be good argument Ii the oa6sz
system had been satisfactory ana kiA =
secured a proper result in the puNcEss
interest but since / believe the old 6ynSts
tenn was wholly unsatisfactory and Wa9s
rapidly becoming progressively m.NrGc
unsatisfactory. l am unable to RuurNS