The Birmingham age-herald., 1919-01-25
NEARLY. BILLION
 MORE IS NEEDED
 FOR ROAD FUND
Hines Says S750,O00,00O Es- timate Covers S196,OO0,00 Loss Incurred in Opera
 tiOn Last Year
By Associated Press

Washington, January 24.-The
 railroad administration needs $7JO,-
 000,OO0 more for it's revolving fund
 to supplement the $5O0, ,OOO, ,O0e
 originally provided and now practi-
 estimate for Congress today, Di-
 rector General Hines explained
 that $196,OOO.OOO of this sum repre-
 sents loss to the government, in-
 cured in operations last year, and
 the remainder represents advances
 to railroad companies, to be repaid
 eventually with interest.
 Congress will be asked immediately to appropriate this amount which MT. Hines declared would be necessary re- gardless of whether the railroads were returned to private management with in a few months or retained longer.
 The director general estimated that s36S, 193,000 would be required this year to finance capital enterprises, such as improvements and purchase of cars and locomotives, which rail- road companies are not able to finance without borrowing from the govern ment. This figure also includes $12- S40,000 for contemplated expenditures on inland waterways and $2o,000 900 to finance a reorganization of the Boston and Maine.
 1918 DEMANDS
 For 1918, the demands accumuIa ted against the revolving fund included:
 Additions and betterments financed by the government. S290 900 cash on hand employed as working capital, for which railroad companies must be credited now and charged when gov ernment control ends, s247, ,100.444; other working capital in the shape ot conductors and agents balances, loans made to companies with materials and supplies as collateral, less current iia- bilities on these accounts, S91952.000; loan to New York New Haven and Hartford involving a reorganization of finances, $51.4 5000; advances for in- land waterways. all but about $5oo,- 900, representing investment in boats and other property $4,36l0O0 These items total $685. S06,OOO
 750 MILLIONS MINIMUM
 This sum- together with the $l9o O0O, ,00} loss to the government on account of the difference between operating income ant returns guaranteed the roads makes $SS1.- SOS0oO, for which the government would be liable on account of the 1918 operations when all railroad accounts for the year are settled. The addition of $36s 900, es- t1mated requirements for 1919 makes sl,- aoU,oW,UO estimated drain on the revoiv- ing fund for both 1918 and 1919, and with allowance for the $500. .OG0 UO already ap- propriated, the new needs are computed at S750O0o,000 The director general re- fers to this as minimum requirement and all figures are subject to later re- vision.
 This report also shows that the pres- ent revolving fund is S3s1, ,SOs, 900, too little to settle all accounts for 191S
 A very large part of these expenditures must be provided for in the first few months of 19l9," said the director gen. eral, and we are compelled to allow for the situation that during the period prior to the next Liberty Loan campaign and during the campaign it would not be desirable or practicable for railroad cor porations to do large part of their , own financing.
 Whether government control shall continue until the end of the T months period or shall be terminated in the next few months, it is equally necessary tha: the appropriation above recommended be | made. If the control continues for the 2l months period. it is my belief and the belief of my associates in the railroad ad- ministration that we cannot count upon the railroad compnaies financing during. the calendar year 1919, any greater portio.i of their capital expenditures than it IS above assumed they will finance. On the other hand. if control should be ter minated in the next few months, it will 1 still be true that very large part of | the capital expenditures for 1919 Will have been made and besides the posses sion of an adequate. fund to facilitate the transfer back to private control an l to give temporary aid in financing will be highly desirable"