The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-20
HALT CALLED ON
RAILROAD WORK
Failure Of Congress to Appro-
pirate $3.50, 100000 Is
Blamed for Order.
HINES FACING A PROBLEM
q
improvements Involving Mill
ions of Dollars Held Up
for Lack of Funds.
HINES FACING A PROBLEM
Speoel pespascA 70 Tn sun.

WASHINGTON, March 1s.--Railroad
construction work aggregating in
value many millions of dollars has
been definitely held up by failure Of
the appropriation of $750,00o,0 900 by
Congress for the Railroad Administra-
tion. Instructions have been sent out
by the Railroad Administration that
In the light OF the present financial
situation all work not specifically ap-
proved by corporate as we'll as Gov
eminent officers need not go forward
unless ii IS necessary to insure safety,
or II it will cost more to discontinue
than to continue the &ork, or where 1t
is covered by a bona fide contract and
the stopping of work would seriously
demoralize conditions.
This means q halt Of many activi-
ties and the discharge OF men when
the unemployment situation is giving
concern. Just how extensive the lay
of Is cannot be learned. There is like
wise no available list Of projects held
up. but all that can be has been
stopped on additions and betterments
of new lines and all construction apd
maintenance work on the railroads.
The equipment programme is to be
carried forward through the use OF
trade acceptances by the equipment
companies. ! This work involves total
OF Sass, ,000, 900. but no means for carry
ing forward the other improvements for
which 100000 was estimated has
been found. Car and equipment en-
ployees are apparently safe.
Seek Financial Ala.
Director General Hines. with the CO.
operation of other Government officials
and railroad executives. Is struggling to
find some means of financing other
needs, but as yet no programme has
been formulated. Meantime definite in
structions that improvement work must
be halted have gone out They are given
In the following circular sent to execu-
tives and Federal officers:
"In the light of the present financial
situation corporate officers who prior to
this date had agreed to finance certain
additions and betterments chargeable to
capital account, now express a desire to
review these authorities. and after con-
ference with the undersigned these regu-
lations were to-day sent to the execu-
tives of all member roads represented by
the railroad executives advisory COM
mittee by Howard Elliott, acting chair
man:
"'After conference to-day between
Mr.. Powell, director OF division of cap
ital expenditures. and myself. 1t was
understood that the following telegram
should be sent by me to the executives
OF all member roads: please be ad-
yised that the director. division of cap
1 ital expenditures, U. s. Railroad Admin
istration. issued on March circular 1s
and which is now in the hands of all
| regional directors 81 Federal managers
| requiring that the definite position as &c
| approval or disapproval of the corporate
| officers shall be secured before any work
costing more than $1,000 shall go for
ward, whether carry over or new work
| In the event corporate officers desire to
reconsider under existing conditions any
approvals heretofore given by them fol-
additions and betterments. whether
carry oveP-or new work. they are au'
thorized to take up at once the with
drawal of such previous approvals with
the Federal managers who, before PRO
ceeding further. will in accordance with
said circular 10 report the situation tc
the Director of Division Capital Expen'
ditures for his special instructions"
"It is assumed that the corporate
officers will Immediately act on this mes
sage.
Orders Survey of Work.
"will you please instruct each Fed
eral manager to afford the proper cor
Iporate officer upon application full op.
portunity to review projects chargeabl'
to capital account. whether In progress
or contemplated. including not only tn,
items In the Ns1s budget and on d. c
r. forms approved since January 1, 1919
but also all uncompleted items in the
carry over from 1918,
"If the corporate officer withdrawt
or withholds approval OF any project foi
financial reasons or otherwise pleas,
proceed as follows: /. Work'not started
phall not be commenced without further
Continued on Ninth Page.