Evening journal., 1920-01-14
DKecfor-GeneraI Hines for a
Few Railroad Systems With
Division of Excess Profits
tFrOm the New York SUM-

DirectoB-General Hines clear and
vigorous treatment Of the railroad
problem before the Association Of the
Bar Is a matter Of prime importance
for more reasons than the fact that
he is the present head Of the Govern
ment operated transportation system
Of the nation. He IS a highly devel-
Oped, technical railroad man Of many
years OF famlliarally with financing
building operating and expanding car
riers under private management Fol
more than a generation he fought for
battles OF the companies. In recent
NOR tbs ne has had to fight the battles
OF the roads, their workers and the
public, not 10 mention the United
States Treasury And after II all
this bred in the bone railroad man
declares these explicit conclusions
based upon this practical experience in
all the capacities in which he has
served:
L believe ahat there must be fun
damental changes which will consoli-
date the railroads into a few agent
systems. / believe that the public
and labor, as well as capital, must
be represented upon the manage-
ments OF these systems. believe
that a definite standard for rates
must be established and that earn
ings clearly In excess Of a reasonable
return must be provided and must go
largely to providing adequats re-
serves 10 take care Of years OF de-
preston and at the same time enough
Of the excess must be left with the
company earning it 20 provide nde-
quate stimulus for efficiency. In my
opinion. II any effort be made 10 re-.
turn the railroads 10 private control
without the fundamental reconstruc-
ton which I advise, the result will
be progressively disappointing, and
in few years the dissatisfaction OF
the public will manifest Itself through
an ins stent demand for radically
different plan which Is not likely then
to stop short Of outright Government!
owuersh p
Mr.. H'res is right in his viow that
American railroads can never give
satisfactory service as a whole, can
never become fnanc c'aly sound as a
whole. canuot keep up with the growth
OF the country. cannot continue as
private Institutions except as a very
few great systems naturally consoli-
da ted. closely cOordinated and cen
trally controlled He is right because
In this age big things-and the Ameri-
can railway system Is incomparsbly
blg-Han be done well only In b'g
ways. The railroads which long were
In advance OF the growth OF tho cOun-
try are not now keeping up with 10
and copnot keep up with II as forty
eleven different factions OF national
transportation system at GROSS purposes
and with conflicting policies. They
cannot get the best and most out OF
terminals out Of traffic offices out Of
overhead fixtures They carnot give
the hest and most service TO the public
which viii determine tho ultimate fate
OF The roads. big and little, good, bad
and Indifferent.
p. Hines ls right IN his view thai
because Of their need OF public conf
dence and support because of the
need OF full corporation by the work
ars. because Of their submission TO
tiovewment rate making and other
regulations. there must be partlclpa-
uon in de railway problems ny not
ONLY tho owners but the workers and
the public.
This does not mean that the publ"
and the workers shall he partners In
the sense hat the term Is now ban
lied about hv st-lke lnaders ard po
ln'ral ag"a'Ors--a partnership I"
,hare the profits hut not the losses
Il docs mean hat they shal get into
ne thing in q way to enable them 10
reach common understanding Of