Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-12-11
MONEY AID
Continues Trum Page oneA

amount IF working capital On hand
az the beginning Of federal cnnrrol
and that their indebtedness To the
government ne funded until they were
able % rehabilIra1e their credit.
The returns of the roads 20 pri-
vata conc-ni without Legislation ID re-
-estore conditions which existed prior
10 their taking over II was Saac.
would be d.sasterops 20 New Eng
land Industries, institutions and in
vasturs."
IN the absence IF District Fuel
Director james J. Storruw, the cual
situation was not discussed At length.
Tbs yguTernprs announced thai they
would appoint Immediately STATE fue!
administrators. Percy r Todd. dis
trict director for the Railr-oA6 Aa-
ministrariun. said that notwIthsrRnd-
Ing the settlement Of the CDR strike
rigid restrictions would be necessary
81 least one month. The state ad-
rr1i-1is.-a turs II was announced.
would confer here TOMORROW with Nj
Stnrruw.
The resolution urging financial as
sistance 10 New England railroads
requested Congress u ADOPT leg1s-
IaLinn that would provide Tor the
payment Of the government guHran-
tee until rates have been put In 81
tee. by The Interstate Cornmerce
Commission. which snail restore the
pre-war relationship OF rates between
X ew England and other rate alstrlc.s'
with sucn Increased divisions and
allowances as shall assure Id the
New England roads sufficient reve-
nue. properly I'd serve me New Eng
land public without undue increase
m inr-a-New England rates, 10 pay
fixed charges OF the SeVera! rGacs
and q reasonable return on the m
vesrmen1 therein, giving 10 the N
rersfare Commerce COMMISSION. pie
mary power 10 determine sucn a.
VISIONS and allowances.
That the ruads shall receive, wnen
returned To their owners the amount
of working capital On hand AZ the De
ginning OF federal control and aGpro-
prialed by the government
That all indebtedness due the gov
eminent be funded for a sufficient Pc
rod and 1t q rate Of interest winch
viii enable the railroads 10 renapiii-
tate their credit, substantially as pro-
viued nv the Cumxnins bill.
Z was further resolved TINT this
conferences In Oppressed TO any ameno-
rnent of the fourth section Of the in
rersta1e commerce. act making rigid
long and Short haul clauses thai would
be detrimental I'd the interest OF New
England Industries"
The resolution recited thHf "Uwrng
to increases N expenses the View ENG
land roads have been more Severely
affectea than roads IN my other ssc-
ton IN the country. with the result
that under federal control they are IN
Some cases earning less than rheir on
Grating expenses and taxes and IN ali
other cases but a small portion or
their fixed charges; TINT they cannot
under rates now in effect render sat-
isfactnry service u the public that
their wuriking cApitAi has bssa Dr.
pIered and inst they ase su6st1nrdaify
without credit"
The railroad situation IN New Eng
land wns presented To the governors
by Edward G. Buckland. president Of
the View York. New Haven & Hartford
RailroHd He said TINT whereas that
the railroads in New England during
the three venrs prior To the war aver
aged net incomes totailing s:s.sSs.eai-
during the % months of government
operation net incomes were reduced To
s7n .sIc.3-5. and in place Of surplus
tptnsiing S1o.s11 .sgs. there was q de-
ficit or SID .s6s.ssi
The rondE IN this district. he said.
had eHrned during the period Of gov
eminent cuntrui 2a.a per cent OF the
government guarantee. wheraas the
runds In othnr sections had earned -
tween rs and Ts per cent. The rela-
lively poor showing. he explained. WIS
due To Increased cpsrs ef carrying
coal. terminal charges rhat were ex-
cessive because Of peculiar Eeograph-
ical conditions. and wage advances
that had hesn unrtinuiarsv seveFe gn