New-York tribune., 1919-05-17
s40O,0OO,000 Issue
For Equipment of
Roads Is Approved
Administration, Executives
and Finance Corporation
Agree ON Plan to Provide
Fund for Cars andEngines

Plans for the creation and sale Of a
single general issue of equipment
trust obligations, the proceeds to be
used in financing the governments
purchases of $4OOO00,0O0 worth of new
cars and locomotives, were approved
yesterday by the members of the asso-
Citations of railway executives, repre-
senting approximately SO per cent of
the total railroad mileage of the
country.
The action was taken at an after
noon meeting in the board room of tie
New York, New Haven 8 Hartford
Railroad in the Grand Central Ter
minal, following conferences of the
special committees of the association,
who informed the railroad executives
that the proposal had been approved
by both the railroad adminstra ton
and the War Finance Corporation.
Eugene Meyer, jr., managing director
of the latter, who was present, an
nounced that the government financing
body stood ready to cooperate in work
ing out the details Of the plan. Bank
ing assistance will also be sought.
Favor Return of Roads
1t was the consensus of yesterdays
gathering that the carriers should be
returned to private ownership at the
earliest possible period. One Of those
present thought that Derember 81
would be the date set for that event.
The statement issued by T. De Witt
Cuyler, chairman of the railway
executives association, said:
"The railway executives discussed
with the members of the law commit
tee OF the association the various pro-
posals that have been made for the
new railroad legislation that it will
be necessary to enact before the gov
ernment relinquishes war control Of
the carriers; There is undoubtedly a
very general demand over the country
for an early return of the roads to
their owners, but Of course, as has
been pointed out by the president, by
the Director General of Railroads and
by leading members of Congress, it
would be disservice to the country
to return the roads to their manage
ments without correcting the recog-
nlzed evils in the system of railway
regulation we had prior to the war
These Embellishments in the old
system Of regulation were seriously
obstructing the free development Of
transportation facilities, and it Is
unthinkable that the country would
consent to a return of the roads to
their owners before insurance had
been provided for the future, by a
thorough revision Of the act to regu-
late commerce. The country is now
IN such general agreement as to the
basic principles Of remedial railroad
legislation that the work of Congress IS
ought to be comparatively easy.
Working Out Problems
THE association also discussed the
working out of the problem of allo-
eating and financing the several
hundred million dollars worth of new
cars and locomotives purchased by the
government for the use of the roads.
The proposal has been made that the
financing Of this large amount of
equipment would be greatly simplihed
by single general issue Of equipment
trust obligations, instead of having
lndlyldual securities issued by each
of the roads. Conferences are beinq
held between the association and the he
railroad administration for the eoui-
table working out of this problem, and
it Is hoped that an agreement will
soon be reached"
Of the s4oo,ooo,ooo which it is ex-
pected will be the total of the pro-
posed equipment and car trust issues
1t was stated that about 1898 900, 900
would be used in payment for cars and
the remaining s1O7,0oO,O0O for loco
motiVas