The sun., 1919-01-08
ASKS NEW FUND
OF $5OO,0OO,OOO
FOR RAILROADS
Bill Introduced to Extend
Control Until 1921 for
Administration.
CHAIRMAN SIMS ACTS
Opponents to Fight Any At
tempt to Put Measure
Through in Hurry.

Special Drspatch TO The srS.
WAsHINGToN, Jan. Conclusive ev-
idence that the Administration intends
to put UP 4 hard battle for retention OF
Government control and operation OF
the railroads during the short life OF
the present Congress was seen to-day
in the Introduction in the House by
Chairman Sims (Tenn) of the Inter
state Commerce Committee of two
amendments to the railway control act
The first provides for extension Of
Government operation of the railroads
until January /. 1924, the second for an
additional revolving fund Of $4,000 co.
900.
The request for another half billion
dollars 10 cover the losses suffered
through Government operation of the
railroads was not altogether uneN-
pected. AS pointed out recently in
THE Sun less than one-tenth OF the
half billion revolving fund with which
OF the railroad systems is still avail
able. In fact the Railroad Admins
tration. as shown by its financial state
! ment, is close to the rocks. and II it is
to continue for any length OF time
must have more huge appropriations.
It 10 McAdoO's Plan.
The provision for extending control OF
the railroads until 1924 is simply the
NcAdoo FIVE year plan, to which strong
opposition has developed not only in
Congress but In the Interstate Commerce
; Commission.
: II Is the firm belief Of a great many
members OF Congress, and particularly
| OF the Senate and House Interstate Com
nerce committees. that In view or the
! sorry financial showing ot the Railroad
| Administration during the first year OF
! its life even the additional revolving
| fund sought would not be sufficient 10
carry through the gigantic plan Of the
Administration and successfully operate
the railroads for five years.
1t Is also the majority opinion and is
even admitted by some hackers OF the
MoAdoo plan that extension OF Govern
ment control and operation until 1872 I
would get the railroads into such tan
gle that the only way 70 solve the d!f-
hcult.es by that time would be to resort
TO government ownership. In fact Rep
resentat!ve Sims avowedly Is in favor
Of Government ownership Of the rail
roads and has not hesitated TO say 50
frankly and openly
Plan to Re Opposed.
, Opponents OF the flve year extension
plan reiterated tonight that they would
! fight to a finish any effort to rush the
MoAdoc proposal through during the
: few short weeks remaining OF the pres
! ent session OF Congress. They reiterated
| also their determination to prevent the
( possible wrecking of some railroad sys-
TENS through the Administration taking
! advantage OF the privilege II has under
existing law OF turning the railroads
! back TO private ownership at any time.
I As has already been pointed out in
/ THE Sun this could be accomplished
through passage OF joint resolution
! preventing such action by the Preside mt
or any one to whom he delegates au-
/ thority.
/ Congress will insist, leaders declared
tonight. on the railroad question being
given the most careful study before
/ determining finally on any plan fo-
their future. To their worries regard
4 ing the practical certainty OF Govern
ment control resulting from adoption
of the McAdoc plan have been added
grave doubts of Government ownership
being possible for any great length OF
| time without the expenditure of tre-
mendous sums and adding to the ALREADY
heavy burdens OF taxation.
would Cost billions.
I No official estimate has been made Of
the entire amount which would be
needed under the fun period OF the
McAdoo plan should It he adopted. hut
unofficial estimates have placed it at be-
/ tween 1000 900. 900 and $4,000. 900. 900
When the time came 10 turn the rail
roads back it is believed by opponents OF
the McAdoo five year plan that such an
enormous amount of money would lie
charged against the railroads as due 10
the Government that they could not be-
gin to pay 1t all.
This Is one OF the factors causing the
belief that Government ownership
would be made inevitable by adoption OF
the five year extension. However
should Government ownership be forced
through by the McAdoo plan or other
wise Il has been estimated that the Gov
ernment would have to pay for the rail-
road properties a sum estimated at be-
tween $4,000. 100000 and $4,000. 900,
900. How it is proposed 10 provide this
amount on top OF paying for the enor-
nous expenditure incident to the war
no proponent of the McAdoo programme
has vet pxnlained