South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-05-20
BILLION FOR
IMPROVEMENT
OF RAILROADS
7 otaI Capital Expenditures
Approved by Officials at
Washington, Exactly
$937,961,318.

WASHINGTON, May 2O.-Rail-
roads under government operation
this year will spend nearly billion
dollars for additions, betterments
and equipment, or approximately
three times as much as in any one
of the last three years.
Total capital expenditures ap-
proved by the railroad administra-
ton as announced today ale $751;
961.31s. OF this big sum s44O.OT1.-
600 will be spent for additions and
betterments. such as stations and
other property improvements; S479,-
$4,000 for equipment. cars and To-
comotives already ordered through
the railroad administration, and
$1S.2O3.00 for track extensions.
Allow All improvements.
The figures disclose Director Gen
McAdoo's determination TO let the
railroads make any Improvements
which they had neglected during
the last three years through per-
hitting tracks TO run down. and
postponing all possible projects re-
quiring big expenditures Of capital.
II also is shown that the railroad
is not encouraging
many extensions OF the lines during
the war emergency, as practically
all sums approved for extensions are
TO continue. those already under
construction, and in some cases pro-
jects already under way have been
disa pproved and work discontinued
Railroads submitting budgets of
proposed capital expenditures this
year asked much more than was ac-
tually approved, and the railroad
eliminated S349. 237,-
600, or nearly one-fourth of the pro-
pOsals. In pairing down the bud
gets TO this extent the administra-
ton made il plain that most of it's
decisions are tentative and may be
reconsidered later in the light Of
any growing necessity or lack Of
need or betterments. In general the
eastern trunk lines were given gem
erOus sums for Improvements and
equipment. TO enable them better to
handle the great flood of traffic TO
the Atlantic seaboard for movement
70 Europe. In many cases. how
ever, the budgets of eastern roads
were cut sharply.
L. s. Capital Advanced.
Part of the capital necessary will
be supplied by the government, from
the $5OO.OOO.OOO revolving fund Of
the railroad administration, al
though advances will be repaid
eventually by the individual rail-
roads.
Wherever possible, railroads will
finance their own enterprises with
out government aid, but the rail-
road administration may buy the
bonds or other securities issued by
the railroads to finance the capital
propositions.
Examination OF the roads budget
has been directed by Robert s.
I.ovett, chief of the railroad admin
istration's division of capital ex-
penditures. and John Shelton VIII
liams. director OF finance and pur-
chases. Railroads were asked two
months ago to submit estimates OF
proposed capital expenditures this
to cover really necessary projects.
They were told. however. 10 bear in
mind that many betterments and
extensions which might appear nee
essary under private management
could be dispensed with under com
mon control and pooling OF facili-
ties II disa pprovinE certain items.
the railroad administration explain
ed that they could ne postponed
until after the war. In this way.
Director Gen. McAdoo adopts the
same policy for railroads which as
secretary OF the treasury. he asks
other business interests TO adopt rs
a war measure.
Has Twofold Power.
"Not only does the railroad ad-
ministration exercise a restraining
power over railroad expansion OF
ca pital projects. but Il also has au-
thority 20 compel roads 20 make