The sun., 1919-03-05
ADVISED TO RETURN
RAILROADS AT ONCE
Wilson Is Told by Senators
Action Should Follow De-
ficiency Bill Defeat.
EXPECT DECISION TO-DAY
Glass and Hines Make Tenta-
tive Denials, but President
Gets Facts Here.
spscieI DtspntcA to THn Soy.

WASHINGTON, March I.-strong rec
concentrations to the President for i'm
mediate return of the railroads to pri-
vate operation and control in view Of
the situation facing the Railroad Ad-
ministration as a result Of the failure Of
the general deficiency bill to pass are
under consideration. by Mr.. Wilson to-
night. In official circles here there Is an
expectation that the President may act
in the matter before the George WASH
ington leaves American waters.
When It became clear to-day that the
deficiency bill was lost Senator overman
IN. c. steerer Of Presidential legisla-
ton In the recent Congress. and Senator
Smith Is. c. chairman Of the Inter-
state Commerce Committee, went to the
President and recommended immediate
return of the roads.
1t was reported that Director General
OF Railroads Hines, who was present
during the conference. concurred in~she
recommendation. This was emphat-
ically denied by SECRETARY Of the Treas
ury Glass when he was asked for q
statement relative to the effect on tho
Victory Liberty Loan Of the private
railroad financing apparently made nee
essary.
Hines IL NoncommittaI.
Director Genera. Hines issued this
statement tonight after conferences
with Secretary Glass and Eugene Meyer.
Jr.. Of the War Finance Corporation:
The railroad situation is 30 COM
pllcated by this recent development,
and there are 30 many possibilities,
t-A - d -tN
may be done with the railroads. 1t
will take a good deal OF consideration
before a conclusion IL reached"
With the Presidents approval Direc-
tor-General Hines announced only a few
days ago that there would be no precipi-
tate return OF the roads in any circum-
stances. 1t has been long felt that he
favored return by June 80 in the event
OF failure Of the proposed fve year con-
troll and reports at the Capitol were that
while he concurred to some extent with
the recommendations of Senator's Over
man and Smith, he favored an announce
ment of return by June 80.
There Is little doubt here that the fall
uDe Of the railroad appropriations means
curtailment to some extent Of expen-
ditures by the roads. Railroad men feel
that It will be necessary for some roads
To postpone dividends temporarily. The
immediate effect on the modest pro-
Eramme of improvements mapped out by
the Railroad Administration is problem
atical. There is little doubt, however.
that it will have to be cut.
Aid of banks Expected.
The banks Of the country are expected
to discount for the roads the Government
entails that may be delayed. but addi-
ions and betterments and other expendi-
n n
east largely out of current receipts,
The railroads must. It IL declared by
>fficials and railroad men, undertake pri-
'ate financing In the face of the forth
.oming Government loan. They cannot
escape drawing from the banks on
Gals. however will not comment upon
the probable results OF this course.
Secretary Glass. when asked for a
statement tonight said he could say
lothing at this time except that ANY
statement that Director-Generai Hines
las directly or indirectly recommended
Immediate returns of the roads Is with
cut foundation in fact"
Officials are not prepared to say how
far the War Finance Corporation may
20 in picking UP the burden OF railroad
financing. This body was continued by
the note bill and is directly empowered
to finance certain foreign trade opera
lions Just how far II can finance the
domestic commerce of the country is re
Rarded as doubtful and officials from
Secretary Glass down will make nc
statement AS to the possibilities.
NJ Brice Clagett, assistant to the
Director-Seneral. Is In New York to
night and is expected to see the Presi
dent. Just what papers of recommends
ton he has with him cannor be ascer'
tanned. 1t is understood. however. thai
he has resume OF the railroad situa
ton as It exists without the $3.50, 900 900
appropriation. He will bring back with
him any instructions from the President