The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-28
EQUIPMENT PLAN
Is SENT TO ROADS
Suggestions Of Bankers for FL
nancing Mailed to Heads
Of Companies.
-
HAVE AGREED ON POLICY
Senate Committee Appointed
to Expedite Legislation,
Is Report.
HAVE AGREED ON POLICY

The plan drawn up by bankers for
financing conprehensively the equip
ment allocated to the railroads by the
United States Railroad Administration,
as drawn up by bankers headed by
Jerome ]. Hannauer of Kuhn, Loeb &
Co. was mailed last night to the presi-
dent and directors OF every railroad
under Federal control. following a meet
Ing OF the car ALLEGATION committee Of
the Association Of Railway Executives,
presided over by Thomas De Witt Guy
Ter, chairman. Every corporate organi-
cation must make a decision as to the
acceptance Of the plan, which Is receiv-
ing the consideration of the Railroad
Administration and Walker D. Hines,
Director-General. II is known that sew
eral railroads have refused to accept the
equipment allocated to them, but 1t Is
believed that to make the plan operative
sufficient number of railroads will &C
cept 1t.
Copies Of the plan were unobtainable
here yesterday. the Railroad Admins
tration not having given permission for
publication, but II Is expected that full
publicity will be given early next week.
All questions Of policy have been agreed
on between the bankers and the railroad
committee and. II the plan be declared
operative, there will remain the flotation
OF the national car trusts, the draft OF
the indenture. the form of the trust, &C.
Bankers are assured that the plan Is
workable and that a problem that has
troubled the railroads and the financial
community for many months will be-
come shortly a thing of the past
Bankers and executives in railroad
circles yesterday were more optimistic or
less pessimistlc regarding the outlook
for the transportation agencies partly
because of the nearby solution Of the
equipment financing dilemma, but more
especially by the receipt in several rail-
road corporate offices Of checks to be
used in payment Of dividends and inter-
est and pressing maturities of the July
period, and by private report that
the Senate committee on interstate COM
merce had appointed a special sub
committee of five to prepare and ex-
pedite remedial legislation, which will
permit the roads to come back to pri-
ate hands at the end OF this year The
names Of the special subcommittee are,
II is understood. Albert b. Cummns,
Iowa Frank B. Kellogg, Minnesota; At
lee Pomerene. Ohio Oscar W. Under
wood. Alabama. and James E. Watson.
Indiana It's personnel is three Republi-
cans and two Democrats, TIE sub-com
mittee is considered In the financial dis
| trct to be a strong one with a trend to
give due consideration to the problems
of protection and fostering the great
rail transportation agencies of this coun-
try
with the preparations fully made by
the banks to care for the financial needs
Of the July l period large number Of
ir stitutions found themselves with cash.
not needed until Monday. and they pro-
ceeded to set these funds at work by
loaning money on call. The result was
the easiest temporary money situation
since the great activity started in the
stock market last February. II Is ex-
pected in some quarters that many OF
those loans will be called on Monday.
but that money should become easier in
! July.