The Birmingham age-herald., 1920-02-29
s715.5Oo. 900 DEFICIT


 The properties will go back, leaving the government with deficit of $T15,- 500, 900 for it's 26 months of operation But while the deficit appeared large federal operation has cost the public considerably less under the conditions, through rate. sand taxes, than would have been the case under private con troll" Director General Hines declared In resume of government manage ment.
 MT Hines believed that the nation and railroads as we'll gained benefits of lasting character from the period of unified operation. In addition to betterments which he believed had been accomplished Mir. Hines said the rail lines were in a position to better operate the properties and to improve facilities. His statement also dealt with the results directly obtained through operating the roads as unit.
 Tt made practicable war transpor- tation service which could not other wise have been obtanied." he said. "Its notification practices have in- creased the utilization of the made quate supply of equipment so that ex- ceptionally large transportation serv- ice has been performed in the busy periods of 1919 with a minimum of congestion; it met the unprecedented coal strike in way which private control could not have done, and ab- sorbed a heavy financial loss on that account which would have proved highly disturbing to private control; it provided more additions and better ments, and improved equipments than private control could have provided during the difficult financial situation of wartime
 SQUARE DEAL GIVEN Tt dealt fairly with labor and gave it the benefit of improved working conditions which were clearly its right; it not only did not cost more than private control would have cost during the same period. but cost con siderably less on account of the econ omies growing out of notifications. and I the total burden on the public | through rates and taxes-on account ! of railroad costs was substantially l less than would have been necessary | if the railroads had remained in pri- vate control and rates had been raised enough to preserve credit; 1t pro 1 tected the investment in railroad 1 properties whereas without federal l control those investments would have been endangered and 1t turns back the roads to private control functioning eff | fectively with record of exceptional performance in an exceptionally diff cult winter, despite the disruption caused by the coal strike, and in a condition to function still more eff fectively with normal improvement to
 be expected in weather and in other conditions.
 The railroad corporations will start II their work with an important psycho- l logical asset MT. Hines said. pointing out that the public holds to rigid re- 1 sponsibility any agency performing a public service without regard for the difficulties of the situation" He de-
 clared the company officials resumed | direction of their properties under 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 organi- lzations-things the railroad adniinis- tration could not do because of uncer- tainties of it's tenure. and for lack of l which the work has been conspicu-
 ously and progressively embarrassing.
 BETTER SHOWING EXPECTED Operating reports for January and | February, MT. Hines said, show that
 the transportation machinery has been | functioned property even under ad- verse conditions since winter. and he saw no reason why they should not | make "a progressively better showing as weather conditions improve.
 1 Although active direction of the roads ! by the government ends tomorrow night, the railroad administration still
 has definite. work to do. In addition to the rendition of public transports
 ton service, the administration was
 charged with administering the con
 tractural relations between the govern
 ment and the roads, Mir. Hines ex- |i plained. The government was obi gated to pay ss17 7,0o0. 900 annual renta to the corporate owners. This and ths other fiscal relations which involved