The sun., 1919-05-15
RAILWAY MEN TO
MEET TOMORROW
To Attempt to Settle Problem
of Federal Purchases Of
Equipment.
PLANNING MORE ORDERS
Formation Of a National Car
Trust May Be Solution
Of Difficulty.

The whole problem OF the ALLEGATION
and financing Of the Federal equipment
purchases, which aggregated S4oo, ooo,-
900, OF which about half was accepted by
Individual roads and half rejected. IA
not only close to a solution but addi-
tional equipment and locomotive orders
are contemplated. That fact was ascer-
tanned late yesterday. following an an
nouncement by Thomas De Witt Cuyler.
chairman Of the Association OF Railway
Executives. to the effect that representa-
tives OF all member roads would assem-
bic at the Grand Central Terminal to-
morrow afternoon.
For many weeks, II not months, the
question Of ALLEGATION of equipment and
the proper method for Its payment has
been a stumbling block. Many railroad
corporate organizations. despite their
fear Of antagonizing the Railroad Ad-
ministration, refused to accept equip
ment assigned to them. Several others
accepted additional equipment under pro-
test Even the strongest roads found
difficulty in financing the payment for
equipment which they felt impelled to
accept.
After repeated conferences among
bankers, railroad officials. equipment
was decided to finance the payment for
equipment through acceptances. The
Federal Reserve Board came to the COM
clusion that II would not be advisab BILE
for the Federal reserve banks to redis-
count such paper. Thus the burden Of
financing the payment for equipment,
except for limited aid extended by the
War Finance Corporation, fell on the
shoulders Of the banks. which have
strained n point to extend all aid in
their power
That makeshift financial solution
pleased no one and left untouched the
lafger problem OF proper ALLEGATION OF
equipment. A special committee of rail-
road men, headed by Howard Elliott,
chairman OF the Northern Pacific, was
formed and has had several conferences
with Washington authorities.
"A special committee Of railroad men,
headed by Howard Elliott, chairman of
the Northern Pacific, was formed and
has had several conferences with Wash
ington authorities.
The committee, II Is understood, has
reached a definite solution. Which will
be read to and discussed by the standing
committee of twenty-four members OF
the Association OF Railway Executives.
II the solution be satisfactory to the
standing committee It will be presented
TO the full membership of the association
at the afternoon meeting, the first to be
held since February Z.
The only definite announcement to be
obtained yesterday was the following
official statement: Thomas De witt
Cuyler, chairman Of the Association Of
Railway Executives. announced last
night that there would be a meeting of
the standing committee of the associ-
alton Friday morning in the New Haven
board room. Grand Central Terminal, to
be followed in the afternoon by a meet
Ing of the member roads OF the associ-
alton, for the transaction of the general
business OF the association"
Several weeks ago Eugene Meyer Jr-.
chairman Of the War Finance Corpor-
alton, while in this city said that the
equipment problem might be solved by
the formation of a national car trust
and 1t is possible that the real solution
Of the equipment muddle lies in such a
step. The proposal OF the special COM
mittee will not be made public until 1t
shall have been discussed by the stand
ing committee and the member roads