New-York tribune., 1919-07-26
Roads Approve
Plan to Finance
Rail Equipment
More Than 20 Per Cent Of
Carriers Favor Joint Is
sue; Expect Satisfactory
Maintenance Settlement

Member roads of the Association Of
Railway Executives with equipment
valued at S250OO0OO0 have approved
the plan providing for the creation of
a national equipment corporation to
finance in single operation the $780,
100000 of cars and locomotives ordered
by the government during the period
of Federal control. Under this ar
rangement it is proposed that $780,
ono,oo0 shall be paid for from the sale
of equipment trust certificates and
that the remaining $4,000 900 shall
he raised through the governments
subscription to the undertaking The
railroads participation already as
sured, it was officially announced yes
terday, represents over 70 per cent of
the value of the equipment allocated to
the roads belonging to the railway
body
The association met yesterday after
noon in the hoardroom Of the New York,
New Haven E. Hartford Railroad Com
rany, at the Grand Central Terminal,
following sessions of the standing and
law committees i'll the morning. In addi
tion to a discussion of the proposed
plan for the creation of national car
the railroad body, stated that the mat
ter of the maintenance of the carriers
while in the possession of the govern
ment. and remedial legislat to &C
company tho return of the railroads
to private operation, also came up for
consideration. In formal statement
Mr.. Cuyler sad
Studying Federal Maintenance
The question of maintenance during
Federal control is now being investi-
gated and considered by both the rail
road administration and by the COM
ranies. Sufficient data have not yet
heen secured to lead to any conclusion,
hut it is hoped and expected that with
derstanding can be reached between
the government and the railroads as to
tho extent to which they have been
properly maintained while in the gov
ernments possession.
within a short time the railroads
expect to submit to the House Com
mittee on Interstate Commerce sub
stantially the same recommendations
for remedial legislation as were sub
ritted by them to the Senate com
Inittee in January of this year. In
order to show precisely the form which
these recommendations would take,
they have been reduced to the phraseol-
ogy of bill. The only change of i'm
portance will be the substitution of
hoard Of transportation for the secre
tary of transportation, with a seat in
the Presidents Cabinet, as originally
proposed.
''For some time we have had under
ccnslderat with the government the
formation of national equipment cor
poratIon, to take up and finance in
single operation a large part of the
equipment contracted for by the gov
crnment and allocated by it to the
various railroad companies. Some. time
ago we submitted to the roads belong
ing to this association the report of a
committee of bankers on q proposed
national equipment corporation.
"Our member roads having equip
ment valued at approximately $3.50, ,000,-
900 have sgnfied their Willingness to
hnance this through this proposed ma
iional equipment corporation. The
participation already assured repre-
ment allocated to roads belonging to
this association.
Government Ready
The matter has been referred back
TO the special committee on ALLEGATION
and financing of equipment, which has
been empowered to negotiate the de-
tails and arrangements necessary for
the formation of the proposed national
equipment corporation. The facts of
The situation have been communicated
- the government, which is under
stood 20 be ready TO negotiate the mat
Tor to d conclusion.
The railroad companies have made
very effort 10 cooperate with the gov.
ernment in this matter, and many OF
ne strongest railroad systems which
could make thoroughly satisfactory
other arrangements have, nevertheless
elected to join in this general move
ment, in the belief that Relationship
with the government will be simpltlet
and that the general railroad situation
will be benefited by such cooperative
action