Arizona republican., 1919-03-12

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 WASHINGTON, March 11-Railroad executives and government representa- tiVes today laid the foundation for the machinery through which loans Of banks and the war finance corporation will be made available to railroads dur ing the next few months, in lieu of the funds which congress failed to provide. After conferences between d number of leading railroad corporation officers and officers of the war finance corpo- ration and railroad administration, special finance commission of seven, headed by Howard Elliott. president of the Northern Pacific, was created by the railroad executives to co-operate with government agencies as a clearing house for financial arrangements.
 SWagar Sherley Of Louisville, who has just retired after serving sixteen years in the house of representatives, recently as chairman of the house ap- propriations committee. was appointed by Director General Hines as director of the railroad administrations divis- ion Of finance, succeeding John Skeltol resigned. On NIr. Sherley. who will take office April 15, will fall much oc the work of administration, the final plans yet to be developed. An important feature of the financial mechanics of the arrangements to be made may be the issuance by the rail road administration of government warrants to railroads for the amounts due them on settlements of last years accounts and other debts.
 Post Dated Certificates
 These warrants, virtually certificates of indebtedness, would not be cashed until congress appropriates funds at the next session, but would serve as collateral for loans. The loans would be arran~ed by each railroad company individually with it's bankers or in spe- \ cial cases, with the war finance corpo- ration. The railroad executive special | committee, together with the railroad administrations financial agencies. would facilitate the negotiation and distribution of these loans. Companies \ whose financial strength was not great | might be helped by the railroad admin | istration, which will get some of tho | funds through repayment by railroads | Of advances already made to them. | These plans were outlined today by ! Director General Hines and the rail \ road executives, but it was emphasized ' that final plans remain to be made. \ Railroad administration and war fi- ' nance corporation officials will confer l, with Secretary Glass of the treasury. \ and Thursday AIr. Hines will discuss | the financial situation with railroad a l builders and with the executives I commission.
 | Although no bankers participated di- | rectly in the conferences today, they \ will be consulted informally iy the cX- s,sr. O. Hsl~, officials. \ number of prominent bank \ CTS were here during the day to confer privately with railroad heads.
 Ask Banks to Garry It appears probable that the war if nance corporation will try to limit its loans tO railroad corporations with ample credit. without reference t0 the government warran nts as collateral, and every effort will be made by the soY- ernmeut agencies to encourage bankers to take up most of the loans required. ' At the same time the railroad admins tration will try to establish large de- gree of uniformity in interest rates.
 This will be facilitated bv the potential | resources of the war finance corpo- ration.
 Secretary Glass at the conference to- ' morrow is expected to emphasize the desire of the treasury to keep railroad securities off the market until after tho Victory Liberty loan which probahly will close May 10 This can be dono | through negotiating short term bank
 loans.
 Roads Appoint Committee | WASHINGTON. March 11-Railro9d | executives meeting here late today ere | ated a commission of seven with How
 ard Elliott. president of the Northern 1 Pacific as chairman. to cO-operata
 with the railroad administration, tho
 war finance corporatio nand bankers ir arranging railroad finances. Other members of the commission are:
 Albert H. Harris. vice president of
 the New York Central; Robert s. Low
 ett, president of the Union Pacific sSamuel Req. president of the Pennsyl l vania; Henry Ruhlender. president of
 the Frisco; Henry Walters. chairman
 Of the Atlantic Coast Line, and Daniel ' Willard, president of the Baltimore and
 Ohio.
 doof- a asbthewul sainl
 Alfred r. Thom will he counsel for
 the special finance commission and iE George M. Shriver vice president of
 the Baltimore and Ohio, will be in
 charge of the accounts. F. c. Buckland, president of the New Haven, will be
 secretary.
 Tt is the sense of this conference or . | railroad executives said a resolution, i' that the railroad companies will. in ! the present financial emergency. CO., VI operate in every practical and reason Il able way with the railroad administra- Il ton, in it's efforts to provide for fi- nancial requirements pending an ap- l. propriation by congress to relieve the V situation.
 II While the problems to be met are
 largely matters between the individual roads the railroad administration, the -e war finance corporation and the bank CTS. it is deemed wise to have the gen u eral situation supervised on behalf oi the railroad companies by a centra
 commission, with power to consider the
 questions involved and to give such aid , and cooperation and to make sucl / suggestions as may be possible to tho S individual roads, to the director gen. eral the war finance corporation and to
 the bankers; it being understood that = such committee is not to have power tC II commit any individual company with e out it's assent
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