The Cordova daily times., 1922-04-15
MERGER OF ALL RAILWAYS
 INTO FEW SYSTEMS URGED
Hines Says by Consolidation All Lines Could Be
 Made to Show Profit.

WASHINGTON, April 15.-Consoli- dation. of the nations whole network of rail lines into few large systems is the ultimate solution of the rail road problem, according to Walter D. Hines, former director general of rail roads.
 Hines, in an exclusive interview, de- clared that this consolidation should come voluntarily on the part of the railroads, but eventually it will prob ably have to be compulsory"
 He also strongly advocated the con- solidation of terminals and the con- mon ownership of freight cars as means of immediate relief for the roads. He urged these steps for the purpose of slashing operating costs which, he said, must be reduced at once in order to permit "rate reduc- tions."
 The former director indicated that the drastic reduction of expenses would enable the roads to be run at profit during 1922 even with cuts in passenger and freight rates. On wages the director declined to ex- press an opinion.
 "The railroad situation is more diff ficult to appraise today than ever be- fore in history" he said. "The roads had no opportunity prior to Federal control to make vast profits out of the war and no opportunity to build up their reserves during federal con trol. Consequently they entered the period of readjustment quite unpre- pared. It will be a long road to re- covery."
 MUST HAVE MORE TRAFFIC
 Hines declared that a fundamental condition of railroad prosperity was adequate traffic, which was not only missing at the present time, but did not appear imminent.
 'Throughout the whole of last year the freight traffic on all roads was from 100000 to 150,000 carloads less per week than in corresponding periods of the preceding year. The average decrease was from 12 to IA per cent he added.
 "Toward the close of the year freight traffic is dropped so low as to be less than the traffic handled dur ing the great rail strike of 1919 or even during the post-armistice period of 1918. All indications point to a slow recovery, if any, during the com ing year. It is reasonable to believe that there will be no return to prosper ity until the volume of traffic is in creased The imperative need at pres ent is to practice economy"
 RATE CUTS FORECAST
 Hines declared that great con cern" must be felt by the roads toward slashing operating costs be- cause of the strong pressure" brought to bear for a reduction in rates. He indicate that the rate reductions would come this year, but did not specify the period.
 ''The heavy increase in labor cost" he added "is particularly burdensome in the maintenance work and terminal part of the transportation work. It seems to me that more progress should be made in these branches for the adoption of labor-saving methods"
 The former director expressed a doubt whether a maximum output" was being obtained in these two branches for the expenditure made.
 q believe that the present railroad situation demands, in view of the in creased cost of labor, a concentration of attention upon terminal and main tenance work with an especial view to. increasing output and improving results" he added.
 MORE ECONOMY NECESSARY"
 Ut is of supreme importance that new methods be devised and that more economy be obtained in the ne cessary maintenance and terminal work, now costing approximately 65 per cent of the total operating ex- penses."
 Hines expressed a belief that the public desired greater economies through unification of facilities.
 "The public soon vii realize that it