Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-02-29

SYSTEMS To BE
HANDED BACK To
OWNE RS MONDAY
U. S. to Give Up Manage
ment of 240, 900 Miles OF
Railroad and Terminals
and Equipment March /.
GOVERNMENT DEFICIT
PUT AT S715,500,000
Cost of Operation, However,
Less Than 1t Would Have
Been Under Private Man.
agement, Hines Says.

lay MORNING JOURNAL SPECIAL LEASED wtHEl
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 equipment, valued at
approximately 100000, 900, 600, over
which its direct authority has been
extended since December 2S, 1917.
The properties will go back,
leaving the government with
6eficit of $715, 100000 for its twen-
ty-siX months of operation. But
while the deficit appeared large
federal operation has cost the
public considerably less under the
conditions, through rates and tax
es, than would have been the case
under private control" Director
General Hines declared in a state
ment Of government management.
Mr.. Hines believed that the ma
ton and railroads as well gained
benefits of a lasting character from
the period of unified operation.
1T made practicable war trans
portation service which could not
otherwise have been obtained ne
said. "Its unification practices
have increased the utilization of
the inadequate supply of equip-
ment so that exceptionally large
transportation service has been
performed in the. busy periods Of
1919 with a minimum of conges-
ton; it met the unprecedented coal
strike in a way which private con-
troll could not have done and abb
sorbed 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 )uld have
provided during the difficult finan-
cial situation of war time; it dealt
fairly with labor and gave it the
benefit of improved working condi,
tions which were clearly its right;
il 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 unifica-
tions, and the total burden on the
public-through rates and taxes
on account of railroad costs was
substantially less than would have
been necessary if the railroads had
remained in private control and
rates had been raised enough to
preserve credit; 1t protected the in
vestment in railroad properties,
whereas without federal control
those investments would have been
endangered land 1t turns back the
roads to private control functioning
effectively with a record of excep-
tional performance in an exception
ally difficult winter, despite the
disruption caused by the coal
strike, and in condition to func-
ton still more effectively with nor
NAL improvement to be expected
in weather and other conditions"
The railroad corporations will
start their work with an important
psychological asset, Mr.. Hines
said, pointing out that the public
holds to rigid responsibility any
agency performing a public serV-
ice, without regard for the diff
culties Of the situation" he de-
cldre0 IHe company olllCldlo ~
sumo direction of their respective
properties under "the most favora-
BILE possible conditions of public
sentiment" They also may lay
plans for the future, he said, and
put into effect permanent organi-
cations, things the railroad admin
istration could not do because of
uncertainties of it's tenure, and for
lack of which the work "has beer
conspicuously and progressively
embarra ssing."
The railroad administration will
still have a definite work to do
after the roads are returned. In
addition to providing transporta-
ton service. it has been charged
with administration of contractual
relations between the government
and the roads. Mr.. Hines explained.
The government was obligated 10
pay 100000 annual rental to
the corporate owners. This, ami
the other fiscal relations which in
volved the purchase of great