The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-05-13
WANTS BILLION
FOR RAILROADS.
Director Hines Will Ask
Congress for Increased
~Appropfiation u
REVENUES CONTINUE
TO SHOW DECREASE
Fight in Congress Expected-May En-
danger Whole Railroad Program
Even Greater Deficit Expected by
Some.


WASHINGTON, May IA number
OF administration officials here, rail,
road officers and bankers, are becoming
concerned oversthe situation in con
9ress with respect to financial relief for
the railroad administration, and inli.
reetly for the roads under government
control
1t has been taken more or less for
granted that an appropriation of $780,
100000 for the railroad administration
revolving fund, which failed of passage
IN the last congress only. because of the
hllbuster at the end of the session.
would be speedily put over in the next
Ecpngress
The railroad situation has changed
rapidly and materially, however, as a
result of the slump in railread revenues.
The railroad administration has been
going further in the hole financially
during each succeeding month and it
| IS expected by Director General Hines
that the showing for April will be
worse than that of the previous months.
| 1t is learned on good authority that as
a result he Will recommend an appro-
priation of a billion dollars to meet
lpresent conditions instead of the $3.50
| loco. 600.
This increase regarded as absolutely
necessary by railroad men, is viewed
/ by many members of congress as seri.
ously threatening the program. There
IS certain to be opposition to the in
creased appropriation. Should this OPP
iposltion materially delay action, the SIT
Iuation will be admittedly grave
For two months the railroad admins
ltration has been able to meet its obi.
| cations through temporary financing il
the use of certificates of indebtedness.
land other credits. Most of these credit.
fare in the banks and the banks ar,
iseeklng relief from further drain from
this quarter.
The end of the fiscal year will brins
la greatly increased burden in the meet
ing of bills for equipment, interest
taxes, dividends and cash capital re
lqulrements for the federal treasures
Failure OF congressional relief befor
the end of the year would threaten TIL
whole financial and credit structure
with results regarded in some quarter
; as critical for the commerce and indus
try OF the country.
On the other hand smooth sailing j
expected for the programme of perma
nent railroad legislation. This pre-
gram has been yariously shaped b
Republican leaders, but they are no
far apart. The ultimate result prof.
l ably viii be a compromise of the ESQ
: bin with the ideas of Senator Gun
| Minis, who agrees more or less with ID
reetorGeneral Hines on the advisable
| ~ of creating small number of stron
7 regional systems under federal incol
/ poration and federal control.
a Senator Cummins, who win probab1
f be chairman of the interstate commerce
committee of the senate, is prepared t
urge immediate passage of a billio
dollar appropriation to meet the preser
financial situation.
i For their experiment in governmeI
ownership of railways the America
Taxpayers will have to pay two billion
II of dollars outright and nearly two hi
+ lion more for two years of increase
n fares, or u total of 81, 1853 GOO, 900, a
% cording to the estimates of the burea
n of railway news and statistics of Ch
. cago, based on returns from forty-s
+ companies operating l07,341 miles
a lfHe. Inc J0I1I sum, OF course. Will
# lessened by the salvage" which Il
:. government may or may not be able
= credit itself with when the roads a
returned in as good condition as tn,
: were in when taken.
i These figures were the result of F;
: inquiry as to how much the railro;
administration had paid on the sta
- dard return long overdue to the COZ
y panies. 1t develops that of the $91.
10 100000 due the roads heard from, on
Z $500 100000 has been paid. These fl
N ures apply to forty six Glass l roa
~ with whom the government contrac
az had been concluded If the figures a
ne extended proportionately to cover all
w the roads taken over the amount !
h naming unpaid of what was due on
on cember 81, 1918, is 1854 100000
ar The roads are apparently failing
er make Depreciation and. obsolesccn
charges until their properties are
turned to them and they can get t
}. actual amount of material loss.
- rTf,. Itaal- o,S,r. e = /.