South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-12-11
FOR j. :.
FINANCING Of
RAILS FAILURE
Wilson Declines Plea of 0p-
orators and Decides Def
niteIy For UnifiCatiOn of
Lines Under Control.

International News Service.
WASHINGTON, Dec 11-Certain
big financial institutions with head
quarters i'm New York and Chicago,
heavily Interested in railway securi-
ICES. have lost their tight 10 have
their properties completely financed
from the public purse. The roads
are 20 be unified and operated prac-
tiCally as "a single system. But for
he present at least proposed loans
80 lat least one billion" will not
pe forthcoming.
VIII Go To Congress.
That was the one thing which
bad been completely settled by the
president today He is going to con-
gress. possibly next week. with sug-
gestions as To needed laws 70 make
the railways "A real factor in the ma
tional war machine. Just what iegis-
lation viii be recommended is not
yet known IL is felt certain. how
ever that 10 Will not i'm any way fol-
Tow the plans which the railroad
pI esidents laid down al their con-
ference i'm New York ON Sunday,
and which was submitted 10 the
president late yesterday 10y sen.
Newlands
Presidents Position.
"a is understood that the presi-
dents position substantially rs as
fellows.
The railroads have failed TO bring
their operations mp to the high
standard which the national emer-
Icucy requires
The existing plan of railway con
troi and operation has had "a SUI
rcient test TO demonstrate that it
viii not do.
All Of the roads must be operat-
ed Jas single system. presumably
under the direction of am operating
head appointed by the president.
such operation will necessitate
pooling OF earnings ana equipment.
Properly handled the roads should
earn far more than they have dur
ing the last few months and will
take care of the question of finance
themselves.
Question OF Cash.
The question of additional cash
Tor new equipment and dividends Is
NOT necessarily the most pressing.
The existing emergency calls for the
complete operation Of the roads at
their maximum power How TO do
rf,- is the problem demanding inn
mediate settlement
De- is believed that the president
win outline this i'm his coming ad-
,3c-s to congress That he viii ask
. cr.rc authority Co take over the
roads BOO accordance with "a set pro-
r1u also is believed certain. Al
ready me has power 90 take them
ever ass war measure but IL Is
believed that me has i'm mind more
general plan for which special au-
fhoritv will be granted. IL also Is
believed certain that the executive
viii suggest specific repeal Of anti
pooling laws for the balance of the
uar period.
Contradiction, OF Claims.
OUTSTANDING today were material
..utradictions i'm the claims of the
roads and Of those who believe the
government must take them over
The public position OF the roads
themselves. was that Indication. as
rut into effect voluntarily. has solv-
ed the problem So that they are now
relieving congestion evcTy where.
that they did not need amy specific
repeal OF anti-pooling laws ali they
asked was that they he not Ca-
forced that they do not want any
rctuai cash from the government
Though they would like the gov
eminent 10 guarantee their credit
and tbat II left 90 themselves they
could successfully cope with all
problems.
Wanted Money
privately many of the big rail-
road executives made IL plain 90
-e-ators and representative that
,hev believed the government should
mend large sums for railway equip
lent and then rent il 20. the roads
Tor the period Of the war at nominal
sums and sell IT, with due allow
.lce for depreciation. when the war
Is over
The Interstate commerce commits
SION was standing pat on its demand
fHat the roads be cOordinated for
the war and expected that this
eould be done
The cabinet was divided. the ma
.ritv urging the president 10 take
he roads over and operate them as
unit
And. ~ Dob an war problems 60
E.te. the president himself will de-
idc how far congress viii go in
failway legislation