The sun., 1919-07-03
WILSON READY
TO TURN ROADS
BACK BY DEC. 1
Congress Will Be Urged to
Rush All Legislation
for Transfer.
RATES DECISION SOON
Hines Waits on Income of
Crop Movement Before
Fixing Tariff.
PLENTY OF FUNDS NOW
Corporation Officers May Act
as U. s. Agents During Re-
turning Period.
PLENTY OF FUNDS NOW
Speoio, DespcfcA to TIE suy.

Special DespdfcA to TIE suv.
WASHINGTON, July 3.-President
Wilson will give immediate attention
to the railroad problem facing the
country upon his return to the United
States Monday. He will hold an early
conference with Director General
Hines. and It is probable he will make
additional recommendations to Con-
gress.
The President. II is learned, has not
changed his view and determination
with respect to the necessity for carly
return Of the roads to private man
! agement No further efforts to OBJ
tain a five year Government control
are to be made, and the roads will
be returned by December /, or sooner
Director General Hines has no spe-
| cific recommendations to lay before the
President, but II is understood that
he will discuss every phase of the
railroad problem and the develop
ments OF the last few months, con-
corning financial and traffic condi-
| tions.
Close study of the rate question is
being made by the Railroad Administra-
ton, and comparatively early and
definite decision for or against an in
crease in freight rates is likely. The
| railroads Of the country are not earning
the guaranteed return under the existing
scale of rates. but slow improvement
In net revenue is being shown. oficiaIs
expect the crop moving period and the
increasing coal demands TO make It clear
whether volume Of trafic will increase
sufficiently to make the railroads self
sustaining, and place them on the same
basis of earnings as they were before
the Government took them over.
Crop Returns Awaited.
The July figures will show the first
| effects OF crop moving and increased
coal demands. but the period Of heavy
trafflc will not set in until August and
September. Until the results on rev.
enues Of this traffic are apparent Direct
or-General Hines will not definitely COM
NIT himself on the rate increase cues
! ton.
Decision as to whether MANAGEMENT
OF the roads under Government control
Is to be given to the corporations before
actual control Is reIinquished, likewise
has not been determined. Director Cen
eral Hines Is OF opinion that such a
move would be OF no definite benefit TO
! Adp,iy 1fatr a
be OF doubtful value 80 the corporations.
In any event the Director General will
not follow the course OF the Postma ster-
| General with the wires and relinoutsh
| management outright. He will IL such
course appears wise. delegate corpora
| tion officers as agents OF the Railroad
Administration to manage the roads for
the administration until the properties
are turned back.
The time of REIMBURSEMENT will be
| largely determined by the action of Con-
gress on railroad legislation. Senate
and House leaders are OF opinion that
new railroad legislation can be shaped
and passed by November.
The Railroad Administration Is in q
comfortable financial position, as a re-
suit OF the near availability OF funds
appropriated by Congress They can be
utilized as soon as the measure signed
by the President on the high seas is re-
turned to this country.
No Exiting" OF Checks.
Director-Generai Hines made It plain
to-day that he was not Exiting" checks
He issued the following statement:
The July requirements OF the Rail
road Administration were approximat tely
SOS, 900 900. which were paid Immediate
| ly. since sufficient cash was available
without waiting for the President to sign
the Railroad Administration appropria
tion bill passed recently by the Congress
"A report was printed yesterday morn.
Ing In a New York newspaper to the
effect that the Director-General had sen,
out his checks dated July l with the pro,
vision they would not be used unless the
railroad bill had become law by Jul,
1. It was stated also that there was an
understanding between the Railroad Ad.
ministration and the Treasury Depart.
ment that the farmers demands would
he honored upon cabled notification that
the President had acted.
This Is a mistake. There was ne
such understanding and no need for such
an understanding and no checks were
sent out without funds being avaiIabl,
In banks with which to pay them wher
presented. The Railroad Administration
has never In the past given, and will moi
in the future give, checks not represented
by money available In banks to pay then
when presented"
Director-GeneralH Hines likewise stated
to-day the plan evolved by railroad
executives and bankers In New Yorl
for the creation Of a national equipment
corporation TO reimburse the Railroad
Administration for $400, 600. 900 OF equip
ment purchases had not yet beer
brought to his attention. The Director
General said his first knowledge wal
from newspaper reports and that he wal
unprepared to state the Railroad Ad
ministration position or to make an,
comment. He admitted. however, tina
some such plan would be worked out.
Rail Dencit of May.
The railroad deficit for May based