South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-03-06

WILL RETAIN
RAIL CONTROL
Despite Failure of Congress to
Provide Funds Railroads
Will Borrow Money
They Need.

WASHINGTON. March 6.-The
government Wednesday determined
TO retain control of the railroads
despite failure of congress TO pro-
vide funds for the railroad opera
ton, and 70 have the roads finance
themselves for the next few months
through private loans on the open
market or through advances by the
war finance corporation.
Effort Will be made TO maintain
operations on a normal scale and
10 carry on as much of the improve
ment program as possible, in order
TO avoid throwing employees out OF
work or otherwise disturbing indus
trial conditions. No attempt will be
mad, TO solve the problem by rails
ing rates.
These assurances were given ny
Director General Hines in a public
statement and in an address to the
conference of governors and mayors
meeting here. At the same time Il
developed that the war finance cor
poration mas about 1887, 900, 900 re-
sources available, and much of this
may go TO the railroads TO supple
ment the sums they can borrow un-
til congress meets again and has an
opportunity TO appropriate funds.
Protracted Conferences.
After protracted conferences be
tween Sec'y Glass and other Off
Gals of the treasury and 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 interference with the
forthcoming Liberty loan
Although officials appeared opti-
mistic. they explained that much
manipulating of financial machinery
would be necessary and a definite
program could not be developed for
some time. Their somewhat cheer
full attitude was in contrast 10 the
rather pessimistic Utterances of
Sec'y Glass and Director General
Hines before the senate appropria-
tons committee, in executive ses-
sion last week, commenting on the
possibility CT he appropriations
failure. The testimony was made
public today.
Two General Ways.
There would be two general
ways in which we might attempt to
adapt ourselves to this new situation
so suddenly created" said Mr.. Hines
today, addressing the conference of
governors and mayors. "One way
would be to cut down expenditures
as rapidly as possible in every direc-
ton. even though these expendi-
lures were highly desirable. The
other way would be 10 try to resort
to every possible expedient to pre-
vail on the railroad companies and
the other business interests affected
to borrow the necessary money 10
enable US to so forward with these
expenditures, and | am emphat-
ically in favor of the plan which
contemplates financing these mat
tiers so we can go forward with the
expenditures rather than Of the
plan Of cutting off the expenditures
so we can avoid the financing.
am absolutely out of sympathy with
any pOICy WA4Ch Plates the
slowing down of industries for the
purpose of throwing men out Of en-
qloyment on the idea that thereby
the rates of wages may he cut down
for the future.
Approaching the matter along
these lines. it is going 10 be my poll
icy and with the most cordial CO.
operation of the secretary of the
treasury and of the war finance cor
pOration 10 try TO md every way we
can to reimburse the treasury and
the railroad administration through
getting the corporations TO borrow
the money &c pay back advances
which have been mace and which it
will be necessary to make to carry
out our program. 1t is going to be
very difficult, but we are approach
ins IL with the determination that
We viii make il succeed in a very
large extent, and that we Will get
a large measure of patriotic cooper
alton from all the interests which
are affected"