Norwich bulletin., 1919-03-06
Government tORetain
Control Of Railroads
Administration VIII Borrow
Funds Until Congress
Makes Appropriation.

Washington, March 5.-The govern
ment today determined to retain con-
troll of the railroads despite failure of
congress to provide funds for the
railroad administration and to have
the roads finance themselves for the
next few months through private
loans on the open market or through
advances by the war finance corpora
ton.
Effort will be made to maintain op-
erations on normal scale and to car
ry on as much of the Improvement
programme as possible, in order to
avoid throwing employees ont of work
| or otherwise disturbing industrial
conditions. No attempt will be made
to solve the problem by raising rates.
| These assurances were given by
| Director General Hines in Il public
! statement and in an address to the
| conference of governors ana mayors
| meeting here. At the same time, it
| developed that the war finance cor
| poration has about $337. 600, 900 re-
! sources available and much of this
may go to railroads to supplement the
| sums they can borrow until congress
meets again and has opportunity to
appropriate funds.
After protracted conferences be
tween Secretary Glass and other Off
Gals of the treasury AMI war finance
corporation, it was stated that means
probably would be developed to keep
the railroads off the money market as
much as possible, and minimize in
terference with the forthcoming Vic
tory Liberty loan.
There would he two general ways
in which we might attempt tC adapt
ourselves to this new situ2 ton SO
sLndenly created said Mr.. Hines To-
day addressing the conference Of gov
| ernorS and mayors. "One way would
be to cut down expenditures. The
other WCuld be 70 raSOT- to every pos
, sibe eXpedient 10 prevail on the rail
road companies and the other busi-
Eess interests affected to borrow the
necessary money to enable rs TO sc
7 forward with these expenditures
/ am absolutely out OF sympathy with
any policy which contemplates the
} slowing down of Industries for tht
purpose Of throwing men out of en-
= rlOyment on the idea that thereby tht
? rates of wages may BE- cut down fol
7 the future.
approaching the matter alons
these lines, it is going to be my pol
| icy and with the most cordial coop
Z GRAFTON Of the secretary of the treas
ury and Of the war finance corpora
ton to try to find every way we car
:
railroad administration through get
ting the corporations to borrow til.
money to pay back advances whicl
: have been made and which it viii b
necessary to make to carry out ol'
programme
I In a statement, Mr. Hines said:
= In connection with the considera
|, ton of this question. there has beel
nc discussion OF raising rates, eithe
passenger or freight, because tn
: / money derived from rates goes int
> operating revenues which prirnaril
, are not affected by the present sit
Il uation.
In connection with the necessary f
RANGING which will have to be don
u by the railroad corporations, it is tn
, y rule that no such corporate fuancin
!; be. undertaken except on certificate 0
the railroad administra ton, an
= therefore the railroad administratio
: in a sense acts as a clearing hous
} Tor such Financing, thus minimizin
the danger of financial confusion"