New-York tribune., 1922-01-25
Hines Defends
U. U.S.Operation
OF Railroads
Former Director General
Denies Pay Rolls We're
Increased During War
for Political Reasons
Calls Claims Unjustified
S7I4.OOO. 600 All Govern.
ment Should Pay, and Not
81, 300, 100000, He Says

WASHINGTON, Jan. 24.--A sweop-
ing defense Of the war .timo operation
Of railroads by the United States gov
crnment and denial Of the charges Of
inef'ciency, careless operation and
wrong policies which have been made
by rail officials, was given to-day be-
fore the Interstate Commerce Commits
sion by Walker D. Hines, who was d.
rector general of the roads for part OF
the time they were under Federal con-
troll.
Mr. Hines denied that tho govern
mcnt had boosted pay rools during the
war for political reasons, and asserted
that it had. in fact, been the policy
Of his administration to prevent any
general increase in wagcs. Iio said
that not more than $71AO00,000 Of the
claims made by the roads against tho
government, which total $780, ,O00, 600.
was justified in fact.
Would Ignore 5000, O,o00, 900
Tne railroads said they had operated
st a deficit Of $500 1000, 900 under ed.
eral control, Mr.. Hines stated. and to
this he said had been added $500 ,000.-
o0o.. suggested by Director General
Davis, and eOo,ooo,oo0 claimed BY tho
ailroads in addition as duo to in
efficiency OF labor, or d total Of 81
100000, 600. The item Of 100000 900,
he said, should oc ignore, az without
ary merit whatever, as should also the
100000 900.
~ Concsrning tho remasn:ng tier, Of
Ssoo'oov vooo, he cited various items
which he said should be deducted with
the result. he said, that the deficit Of
shs railroads during government oper-
months, amounted 70 $714,O0O 900.
Against this he placed the assertion,
that the deficit during the first twelve
months nnoeI private operation after
the ret"ln OF the railroads, he'd been
81 ,00O. 100000.
This vas not :. salts factory basis for
comparison. lie explained, because il
depended so largely upon the level ot
rates ard the dates when rate In
ctease5 became effective. \ true basis
OF comparlson, he contended would be
che total cost, which consists Of total
operating expenses. tax Accrualu, etc.
and On This basis lie stated that these
total operating costs fer class one rail
Toa0s we're in 1917, $4,000, 900 900; in
dS, l9la, s+,24o,ooo 600; in la19. s4,Sao.
ooo,c0o. and in 1925. se,i09 ,o0o, coo.
Denies Deterioration
NJ Hines denied that ti.e railroads
we're turned back TO their owners in a
"b.oAen down" condition. Iie said he
believed the government had "aubstar
italy overnlailtaiRed The cuuip,ncntr
Of thc roads. NJ. Hines told che CON-
;nitseo that reports at the end Of Fed-
ersl control snowed LOGON olives to be
IN "disrinccly better" condition than ee
the beginning. and Che condition Of
freight cars 20 compare tavorablyA
With that time. II must oc remembered.
;ae added. that both generally were il,
"exceedingly poor" condition ct the bo-
ginning of Federal operation.
although there had been some short
age Of lna:ntenance in raila, cross ties
and ballast on soino roads, Mr.. Hiros
said, this had been "greatly exee0er-
ated.' There could be no better PROOF
Of the condition OF the roads when
turned back, the former Director Gen.
er.l said Than the unprecedented VOL
uzac o3 business which they began to
handle within TOUR months Of that Time.
III 1920, without, he asserted. any
marked improvement: in the cord;Hio-,
O1 CNCir rolling stock