Evening star., 1919-03-05
ROADS BACK DEBTS
ARE 381 MILLIONS
Railways Left Without Means
to Garry Out Program OF
improvements.
WAR FINANCE MAY AID

The railroad administration is prac-
| tically without funds. 1t has about
| 1891, ,000, GOO of back debts and no
means to carry out its program OIL
improvements planned for this year
to relieve the labor situation. This
state of affairs is caused by the ad-
journment of Congress without ap-
propriating the s750,o00.000 desired
for railroads.
Immediate REIMBURSEMENT of the
roads to private management loomed
as a possibility, but officials said this
would be done only if it finally ap-
to borrow privately the millions
need. or 10 have the War Finance
Corporation extend larger loans to the
companies.
Director General Unable to Say.
Director General Hines, after con-
ferences last might with Secretary
Glass, and Eugene Meyer, jr., man
Corporation, made this statement:
The railroad situation is SO COM
plicated by this recent development.
and there are so many possibilities,
that l cannot say at this time what
may be done with the railroads.
Several Treasury officials in close
touch with financial conditions ex-
pressed belief that the railroads
could obtain loans privately to tide
them over the next few months, al
though perhaps at high interest
rates. In this connection a confer
ence of leading bankers with Treas
ury and railroad administration Of |
hcials was proposed.
War Corporation May Lend.
The War Finance Corporal ton. it
was announced, already has lent
SI1,505,00 to railroads. It has au-
thorization to advance several hun |
dred million dollars additional under
war powers, on adequate collateral, |
and at rates at least l per cent high !
er than current rates for ninety-day |
paper Officials question, however, |
whether the terms of the act could |
be interpreted liebraIy enough to
oermit the corporation to go into
this wholesale financing.
Only a few million dollars remain in
the railroad administration original
sinking fund-barefy enough to run
the administrators machinery Itself. |
In addition to paying 1891. 900, coo to
railroads for settlements of 1918 ac-
counts, the railroad administration
had planned to use this year S491 ,000.-
600 for improvements, S12,S4e,o00 of
which would go for inland waterways.
Unless funds can be provided soon,
the railroads will remain unpaid, and
in turn they may be slow in paying
their bills for supplies and materials,
it was pointed out
The Treasury is anxious to avoid
throwing railroad securities on the
market before the victory liberty loan
campaign, and for this reason viii try
to arrange a means of supplying cred |
1t through the War Finance Corpora
tion if this is possible.
Loans Already Made to Roads.
Loans already made by the War
Finance Corpora ton to railroads, as
announced today, are as follows: Bal |
timore and Ohio, s5,450.e .e0e. Southern, |
S5. So. 900; Rock Island, $780, 600; H. |
linois Central, s12.00o.00 Chesapeake
and Ohio, s2,370,000; Central of Geor |
gia. 5000, 600: Chicago, Milwaukee and
St Paul, s1I,50o, 900, and New York
Central. $500 900.
Thomas Dewitt Cuyler. chairman of
the Association of Railway Execu-
tives. said last night: I'VE cannot help
but believe that in some way funds
will be found to meet the situation, t
least temporarily, until Congress at a
special session has an opportunity to
make the necessary appropriation.