The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-03-15
Money for Railways
Government Representatives
and Executives of Compa-
nies Make Plans to
Obtain Funds.

OUtd1n UIlUS.
Washington, March 11.-Railroad
executives and government repre-
sentatives today laid the foundation
for the machinery through which
funds of banks and the war finance
corporation will be made available to
railroads during the next few months
in lieu Of the funds which congress
failed to provide.
After a, conference between a num-
Der OF leading railway corporation
officers and officials Of the war finance
corporation and railroad admlnlstra-
ton, a special finance committee OF
seven, headed by Howard Elliott.
president Of the Northern Pacific. was
created by the railroad executives to
cooperate with government agencies
as q clearing house for financial ar
rangem ents.
Othe,. members Of the committee
are: Albert II. Harris, vice president
OF the New York Central; Robert 5.
Lovett, president of the Union Pa
cihc; Samuel Rea, president OF the
Pennsylvania; Henry Ruhlender,
president OF the Frisco; Henry Walter,
chairman of the Atlantic Coast Line,
and Daniel Willard, president of the
Baltimore mad Ohio.
Alfred P. Thorn will be counsel OF
the special finance committee and
George NJ. Shriver, vice president OF
the Baltimore & Ohio. will be in
charge Of the accounts. e. c. Buck
land, president of the New Haven. will
be secretary.
Swager Sherley Of Louisville, who
has just retired after serving Is years
in. the house of representatives re-
Gently as chairman Of the house ap-
propriations committee, was appoint
ed by Director General Hines as di-
rector Of the railroad adminstra-
tion's Division Of finance, succeeding
John Skelton Williams, resigned. On
Mr.. Sherley, who will take Office April
Is, will fall more OF the work Of Ad-
minister;ng the financial plans yet to
be developed.
An important feature of the fnan-
cial mechanics Of the arrangements to
be made is the issuance by the rail
road administration Of government
warrants to railroads for the amounts
due them on settlem ents Of last year:
accounts and other debts. These war
rants, virtually certificates Of indebt-
etiness, would not be cashd until con
gress appropriates funds at the mex
for loans. The loans would be ar
ranged by each railroad company in
dividually with its bankers, or in spe
cial cases with the war finance corpor-
alton. The railway executives spe-
ciaf committee together with the rail-
road administration financial agen-
cies would facilitate the negotiation
and distribution Of these loans Com
panies whose financial strength was
not great might be helped by the rail-
road administration which Will get
some funds through repayments by
railroads Of advances already made
to them.
1t was announced that the special
finance committee is not to have
power to commit any individual COM
pany without its ssaent.''
L
Director General Hines and the rail-
way executives but it was emphasized
that final plans are to be made. Rail
rad administration and war finance
corporation officials will confer to-
morrow with Secretary Glass, and
Thursday Mr.. Hines will discuss Tie
financial situation with railroad car
and locomotive builders. and with the
executives committee.
Although no bankers participated
directly in the conferences today. they
will be consulted informally by the
executives and railroad administra-
ton officials. A number Of prominent
bankers were here during the day to
confer privately with railroad heads.
It appears probable that the war
finance corporation will try to limit
its loans to railroad corporations will!
ample credit, without reference tc
the government warrants as collat-
eral, and every effort will be made by
the government agencies to encour-
age bankers to take, up most of the
loans required. At the same time the
railroad administration will try tc
establish large degree Of uniform
ity in interest rates. This will be
facilitated by the potential resources
Of the war finance corporation.
Secretary Glass at the conference
tomorrow is expected to emphasize
the<desire Of the treasury to keep rail
road securities off the market until
after the Victory Liberty Loan, which
probably will close May TO- This can
be done through negotiating short
term bank loans.
Huns Start Conspiracy