New-York tribune., 1920-02-29
Rail Administration Head
Will Continue His Work
as Governments Agent
in Readjustment Period
26 Months Control
Ends at Midnight
Report Declares Systems
Are Returned to Own.
ers in as Good Shape
as When Taken Over
By Stanley Frost
Special Dispatch to The Tribuns

dent Wilson tonight, in spite of the
violent protests Of the railroad labor
leaders, signed the transportation
act, providing for the return of the
railroads to private control and cs-
tablishing as part of the national
law the duty of the Interstate Com
merce Commission to insure the car
riers reasonable return on their in
vestments. The bill thus became law
barely thirty hours before it goes
into effect, at 1901 a. NJ, Monday,
bringing to an end the twenty-six
months experiment in government
operation of the roads.
The President. when he signed
the bill, made public reply he had
prepared to the railroad brother
hoods request that he veto the bill,
assuring the employees that the
provision in the bill for the Labor
Board would, in his opinion, guar
antee to the employees the proper
protection in the matter of wages
and working conditions.
Hines to Retain Post
Mr.. Wilson, in a proclamation is
sued along with the reply to the
brotherhoods' members, vested in
Walker D. Hines, Director General
of Railroads, virtually all powers
conferred upon the President in the
railroad bill. The duties of the
director general will extend beyond
the return of the roads, and Mr..
Hines will continue to perform the
duties of that Office.
So far as the public is concerned,
no visible change will accompany
the return of the roads. All the
agencies which have been established
by the government will continue
operating as usual. Only the CEN
tralized directing power drops out Of
existence.
Unions Attitude IN Doubt
The vigorous battle which the unions
have made against the bill leaves some
what in doubt their next action toward
seeking the wage increases, totaling
more than billion dollars, which they
have demanded. Their chief objection
has been to the labor provisions of the
new act, under which they must now
present their claims. There has been
some talk of attacking the constf-
tutionality of the law, though the
chiefs have been so busy with their
fight that they have formulated no
plans.
The urgency of the situation has led
Washington to expect that the Presi-
dent will act with speed in appointing
the three members of the Interstate
with the eight, now serving, in putting
the law into effect. Railroad men,
labor and investors are alike awaiting
these appointments with the utmost
for upon them the attitude and
action of the commission are likely to
depend
Hines Defends Federal Control
Private control of the railroads dur
ng the last twenty-six months would
1ave cost the public more than it has
ne government and would not have
net the difficult problems Of the war
ana reconstruction so we'll, Director
General Hines declares in discussing
he 1884, ,423,434 deficit in his report
% the President for the fourteen
months ending March /. The report,
made public tonight, is general sum
nary and defense of the operation of
federal control. 1t carefully avoids
any dlscussio1 bearing on the question
u government ownership.
The total immediate cost of the rail-
'oad administration to the government
If S1,S86, ,885, the deficit, and the
'redits of $938,6l5,551 to the railroads.
which are to be repaid within ten
'ears. as stated in the report, already
1ave been forecast. OF this Mr.. Hines
says:
My deliberate judgment is that Fed
sral control has not cost a cent more
han private control would have cost
or the same period, but, on the con-
-rary, has cost considerably less. I be-
leve that the private control which
existed In December, 1o'7 - = h.d
'ontlnucd during the increasing stren
If 1918 till the armls.41u -.
he even more difficult period N va.
construction since that time. would
nave encountered in the aggregate snb-
stantially as great increases in cost as
ne government has encountered and
would have been wholly unable to
realize many important econom; ;es
when have been accomplished through
unlhcation and which have helped 10