The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-08
SAY RAILROAD POOL
Is BUT SUGGESTION
Bankers Recommend Forming
Banking Group to Aid
Lines Financially.
TO MEET IN WASHINGTON
Meyer Says War Finance Cor
poration Will Use All Re-
sources In It's Power.

A delegation Of prominent bankers of
this city, including J. p. Morgan and
Otto II. Kahn. and the so-calied steering
committee OF the National Association Of
Railway Executives. including T. De
witt Cuyler. Alfred p. Thorn. Samuel
Rea, Howard Elliott. Daniel willard and
Robert 8. Lovett. will confer on next
Tuesday in washington with Walker d.
Hines. Director-General OF Railways. as
TO ways and means to tide over the
railroad predicament until the next
Cangress assemblies in special session.
Tue bankers will carry with them
many suggestions. including the forma-
ton OF banking group to extend finan-
cisl aid. not O pool. as enormously re-
ported. The problem. which Is admitted
to be q grave one, will be discussed
from every angle, and It was asserted
yesterday that whatever the obstacles
railroads will receive full protection.
Eugene Meyer. Jr., chairman VI the
War Finance Corporation, who made q
special trip from Washington to this
city. declared yesterday. after receiving
bankers in his office in IL Wall streeS,
that the War Finance Corporation would
stand In the breach between roads and
the Railroad Administration and make
use of all resources In its power. He
said that the corporation can extend
direct aid of $337,500,000 and make
use Of additional funds by turning over
TO the Treasury many millions Of Liberty
bonds purchased for the sinking fund.
There is a possibility OF bond issue by
the War Finance CORPORATION.
Can Care for All Roads.
Meyer thought that the War Finance
Corporation could care for all require
ments of weaker roads and that stronger
roads could get aid from bankers with
out formation Of a group or pool. and
added that he had heard no discussion
OF a pool.
The question Of solving the problem
confronting the railroads Is still in a
nebulous stage and further developments
await next weeks conference. The i'm
preston that bankers had decided to
form a $500. 900. 900 to 5000. 900, 900 pool
was characterized by a member OF the
frm of J. p. Morgan Co. yesterday as
pure moonshine. but he added that It is
possible that the bankers will be able to
Be Of material assistance In relieving the
Railroad Administration from conse-
quences that normally would follow from
failure Of Congress to add $3.50. 000, 900
to the revolving fund.
Ths, bankers said yesterday that the
obvious remedy was a prompt call for
an extra session Of Congress and that
one might be called on or before May /.
They declared that the railroad situation
was not quite as black as had been pic
tured. and that most Of the burden could
be rested on the War Finance Corpora
TONS shoulders r-r-r .aAfa---
Tho report that there was q nation
wide request on ]. p. Morgan Co. TO
form a 35o0.ooo.oo0 banking pool was
found TO be erroneous. although New
York bankers had been asked to lead in
ths matter of extending aid. One New
York banker suggested to the Morgan
Arm the advisability of forming the pool
but It was recognized that questions OF
fact and law. to say nothing of politics
stood in the way OF the successful carry
ing out of such q project
Plan Nationwide Banking Group
The idea in tho minds of the Local
bankers was to have the Morgan firm or
ganiEe a nationwide banking group &c
act as a distributing syndicate Of rail
road certificates Of Indebtedness in case
the Railroad Administration certified &c
tain sums on 1913 and first quarter oil
1919 rentals. II those certificates were
given a definite short term maturity and
guaranteed by the railroad corporation
IL was thought that they could be pur
chased by banks, insurance companie,
and savings banks or other flduciary In
stitutions, but II was found speedily that
such a project would encounter man,
legal obstacles.
The outstanding fact yesterday wa.
that the bankers are willing to extent
aid. II II Is required, but that they ar,
by no means agreed or certain as Il
rust what form this aid will take. Al
suggestions are necessarily tentative un
I'll they receive Washington approval
Confidence regarding the future of tn,
railroads has been restored by the new
that leading bankers are giving seriou
consideration to all ways and means b,
which they may cooperate with the Fed
srsl authorities
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