New-York tribune., 1918-05-02
500, 600, 600 Loaned to
Railroads by u. S.

The New York Celtral Railroad sys-
tenn yesterday received from the United
States government $2S,500,000, of which
$10,000,000 was made available for pay
ing off that amount of one-year 4 u
per cent notes that fell due. On ac-
count of the first quarters rentals Of
the company and its controlling lines
under the plan of Federal control $13,-
O,O00 was received including $10,000,-
600 for the New York Central itself,
100000 each for the Michigan Central
and the Big Four and $1,200,000 for the
Pittsburgh G. Lake Erie.
A. II. Harris, vice-president of the
New York Central, announced that while
up to the present no definite action
had been taken by the governent with
respect to $S,O0O,OOO of Michigan Cen
trail per cent nStes maturing May
Is, he believed this obligation would
administration from its $500,000,000
revolving fund.
William G. McAdoo, Director General
of Railroads, announced in Washington
yesterday that total of s9O,614,00O
had been advanced to the country's
railroads either as loans or as ad-
vances on account of rentals to April
80, 1918. In addition to the s43,964,OoO
turned over to the New York, New
Haven & Hartford to meet its April
Is maturity, and the loan to the New
York Central, advances have been made
as follows:
Pennsylvania Railroad, $1,000 900;
Baltimore & Ohio, $5,O00,O0O; Chicago,
Rock Island G. Pacific, $3,00O,00O; Wa
bash Railway, $1,300,000; Minneapolis
G. St. Louis, $75o,ooo; Chicago, Indian
apolis & Louisville, 100000; Buffalo,
Rochester g. Pittsburgh, 100000; De-
McAdoo in his statement said:
April 80 marks the close of the
fourth month of government operation
of the railroads of the country. Since
the approval by the President on March
Il, 1918, of the railroad bill, the United
States Railroad Administration has ad-
vanced to the railroads, in the shape
OF loans or on account of rentals pro-
vlded for under the act, an aggregate
OF S90,614,000 Of this amount $14,300,-
900 was advanced to certain railroads
on account of the sum estimated to be
due for rentals for the quarter ended
March 81, 1918, on the basis Of the
three-year average net income; and
$76,314,0 900 was furnished in the shape
of loans.
"Of the S76,314,00O thus loaned s43,-
9b4 UUO went to the New York, New
Haven E. Hartford at per cent per
annum interest for one year, with the
right of renewal for another year. All
the other loans were made on demand.
adequately secured by collateral, at the
uniform rate of interest at per cent.
1t is expected that the money tempo
rarily advanced to the various railroads
will be returned to the government
from time to time as the railroad cor
poration, may be able to perfect and
carry out comprehensive plans for
meeting their financial requirements.
"As the saving of the people and all
other funds available for investment
are being put to so great an extent
in Liberty bonds, it has not been practi
cable recently for the railroads to find
a market for new issues of securities.
But with the Liberty Loan successfully
placed; it is hoped that reader market
for other securities will develop short
ly, which would enable the railroads
to provide more satisfactorily for their
present and future needs, without de-
pending so largely upon government