The Birmingham age-herald., 1919-03-12
CONFER WITH GLASS

secretary afH
 Thursday MT la tt
 financial situation with
 locomotive builders, and wi..-
 tive's commttee.
 Although no bankers participated J. rectly in the conferences today, they will
 be consulted informally by the execu-
 lives and railroad administration offi- cials A number of prominent bankers
 were here during the day to confer pr1- vately with railroad heads.
 It appears probable that the war H.
 nance corporation will try to limit it's
 loans to railroad corporations with ampie
 credit without reference to inc govern ment warrants as collateral and every er-
 fort will be made by the government
 agencies to encourage bankers to take up most of the loans required. At the same
 time the railroad administration will try
 to establish large degree Of uniformity
 in interest rates. This will be facilitated
 by the potential resources or the ""i
 finance corporation.
 Secretary Glass at the conference to-
 morrow is expected to emphasize the de- side of the treasury to Keep railroad se- curities off the market until after the
 Victory Liberty Loan, which probably will close May TO- This can be done through negotiating short term bank loans.
 HINES ISSUES STATEMENT The director general issued the follow ing statement after the meeting At the invitation of Walker D. Hines, director general of railroads, confer ence was held today between the direc- tor general and group of representa- tive railroad corporation executives, ] members of the war finance corporation and members of the advisory finance <l fnt tff1s, | to discuss the financial situation facing the railroad administration and the rail | road corpora tions as a result of the fall ure of Congress to pass the S750, ,000O0O ap- propriation requested by the railroad ad- mnistration.
 1 Tn order to get the problem before the conference. the director general out | lined the situation as follows: Amount needed up to June 30, 1919: For interest and other corporate TO- quirements of the railroad corporations, 1 $f66, ,066, ,762.
 ITO meet amounts due equipment com l panies by the railroad administration, | s1S3, ,6S1, ,965.
 "To pay for indispensable additions and betterments. including equipment or 1 dered by railroad companies, $11S,0 ,000 ITO meet maturities of the railroad I corporations, s10o.94s,96 ] ITO meet excess of cash requirements | to pay current vouchers over the prob | able receipts up to March 31, 1919. S19i,- l O0o, 900.
 ITO bring cash balances in hands Of | federal treasurers up to $2Oo ,0O00 900, which ! is the normal requirement. for one month.
 $40 o0O. 900.
 Total. s7o1, ,ss7sss.
 MUST OBTAIN LOANS Tt was made clear that to large ex- | tent it will be necessary for the railroad corporations to meet their requirements by obtaining loans from bankers. ths resources of the war finance corporation to be reserved to protect special cases The director general and the confer
 ence generally proceeded on the view that it was highly desirable to devise ways to provide for payment Of biiis i and have the situation met through l financing rather than by general sus- | pension of work which would have de- | terrent effect upon business generally. | ."The director general told the confer ence that he was considering the advis- ability of having the railroad admins | tration issue, under reasonable condi- ! tions and limitations, warrants Tor amounts due railroad corporations, such warrants to be in the form which would serve as collateral for railroad corpora l tions desiring to make loans through banks and such warrants to be taken up when the Congress makes the appropria- i tion needed to meet the situation. Eugene Meyer, Jr., managing director l of the war finance corporation, assured l the director general and tho conference !, that the corporation was desirous of do- l ing everything possible to assist in meet
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