South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-01-08
CONSOLIDATION
OF ROADS URGED
Director General Hines Gives
Views in Address at
New York City.

by Associated Press
NEW YORK, Jan. 7.-Compul-
sory consolidation of the railroads
into d few great corporations before
they return to private control. with
the public and labor as we'll as cap
ital represented in the management
a the systems, was advocated
Wednesday night by Director Cen
cral Hines in an address before the
Par Association of New York City
Without this fundamental re-
construction" Mr. Hines declared.
the result would be progressively
Disappointing and IN a few years the
dissatisfaction Of the public will
manifest itself through an insistcnt
demand for a radically different
plan which is not likely then to sbon
short Of outright government owner
ship.
Old System a Failure.
Pointing out the almost impos-
sible" situation OF the railroads prior
30 federal control. owing TO the dif-
ficulty of financing the lines. Mr..
Hines said that ''our past experience
demonstrated that the Old system
will not succeed" Tie advocated the
hSing by congress of general
standard Of rates To allow earnings
clearly in excess of a reasonable
return which must go largely TO
providing adequate reserves To take
care OF years OF depression and at
the same time enough OF the excess
must be left with the company
earning it TO provide adequate slim
ulYs for efficiency.
We make a grave mistake i'm zs-
suminE that the representatives Of
capital alone can manage the situ-
alton" Mr.. fines said. THE scheme
or the past has been on that false
theory and the result has been that
the public has injected itself into
The management through all sorts
of agencies and labor has injected
itself INTO the management through
its own organic ations. We have al
three interests participating i'm the
management i'm an sorts OF ways
and set thCrc is no common ground
or which these three clements can
meet and exchange views and en-
de3vor TO reach conclusions. be
lioVe tho only sort of mana cement
which can he permanently effective
IS one which provides for an order
iy participation at the outset OF ali
three OF these interests instead ot
the past scheme. which leaves each
interest to pursue its own methods
irrespective OF others uutG an
eventual contact is established in
some form of controversy.
Difficult Period.
Describing tho difficulties attend
inc the immediate establishment oi
a0v plan OF private management
with adequate credit To provide the
necessary capital needed for phi
vate development. MIR. Hines said
that il was generally agreed that
this was one of the most difficult
financial periods in the history ol
the world
obviously" he continued. cit will
bc more difficult TO establish. salts
factoriiy the credit of q large mum
ber OF railroad companies at the
present moment than IL would be G,
do this at later date when imam
cial conditions generally have be-
come better stabilized
Railroad credit is dependent of
course. upon the conclusions which
the invcsu-at.ug public reach as ia
jhe earning capacity of the rail-
ROADS. 40 one would seriously COM
send that 1915 furnished salts
factory basis FOR conclusions ON
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