Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-03-06
RAILROAD CONTROL.
Will Be RETAINED
BY PRIVATE LOANS
Government to Operate
Lines Despite Failure
to Get Appropriation.
FINANCE ROADS THROUGH
BANKS AND CORPORATION
Hines Asserts No Increase in
Rates Will Be Made to
Aid Situation
SEEKING TO KEEP EMPLOYEES
New Work Planned Would Give La.
Dor for Thousands During
Coming Months.
FINANCE ROADS THROUGH
BANKS AND CORPORATION
SEEKING TO KEEP EMPLOYEES
New Work Planned Would Give La.
Dor for Thousands During
Coming Months.
fBv Associated pree !

IBv Associated Prees
WASHINGTON. March 5-The gov
eminent today determined 20 retain
control OF the railroads. despite failure
Of Congress TO provide funds for the
railroad administration, and TO have
tho roads finance themselves for tho
next few months through private loans
on the open market or through ad-
vanccs by tho War Finance Corpora
lion.
Ener, will be made to maintain
operations on normal scale and TO
program as possible. In order TO avoid
MOVING MOVING employees out OF work or
GtnsrWits ons dsigT6ns induS,ra eInd
solve the problem by raising rates.
These assuranGcs were given by D!-
reetor-General Hines in public state
ment and in an address 10 tho confer
encc or Governors and Mayors meeting
ne me- war rinsse is san s II dsse,9ped
sS37 ,oco.ooo resources available. and
much OF this; may go 20 railroads TO
until Congress meets again and has
opportunity TO ap.propriatc funds.
Secretary Glass and other onicials Of
the Treasury and War Finance Cor
po,ation. It was stated means prob
railroads off the money markc, as
much as possible, and minimize inter
terence with the forthcoming Victory
Liberty loan.
MUCH MANIPULATIOS
or FINANCES NEEDED
Although officials appeared optomis-
tlc they explained much manipulat-
necessary, and definite prog gram
could no, be developed for some time.
In contrast to the rather pcsaimistic
ntterancca of Secretary Glass and Dr.
a,e Appropris,ions committec in cxecu-
siSe session last week. commenting
upon the possibility OF tho appropria-
tion's failure, The testimony was
There would DC two general ways
IN which we might attempt 10 adap,
denly created" said Mr.. Hines today.
addressing the conference OF Governors
and Mayors. One way would be 10
cut down expenditures as rapidly as
possible in every direction, even
though these expenditures were highly
desirable.
The other way would be 10 try to
resort 10 every possible expedient TO
prevail on the railroad companies and
The other business interests affected
10 borrow thc necessary money TO
onabic us 10 20 forward with these
expenditures. and I am cmpha,ically in
favor OF the plan which contcmplatcs
financing these matters 50 we can go
forward with the expenditures rather
than OF the plan of cutting off the eX-
oenditures SO we can avoid the inanc-
ing. / am absolutely out of sympathy
with any policy which contcmplates
the slowing down OF industries for the
purpose of throwing men out Of en-
ploymcnt on the idea that thereby tho
rates OF wages may be cut down for
the future.
DECLARES NEW PLAN
TO BE VERY DIFFICULT
Approaching the matter along these
lines, ii is going to be my policy. with
the most cordial cooperation OF the
Secretary of the Treasury and OF the
War Finance Corporation. 20 try TO find
every way We can TO reimburse the
Treasury and the railroad administra-
lion. through getting the corporations
20 borrow tho money 10 pay back ad-
vances which have been made and
which II Will be necessary TO make 10
carry out our program.
1T is going to be very difficult, but
we arc approaching il with the deter
mnation that we will make it succeed
IN a very large extent and that we
will get large measure of patriotic CO.
operation from all the interests which
arc affected.
I'm connection with the considera-
lion OF this question there has been no
scnger or freight. because the money
derived from rates goes into operating
revenues. which primarily are not af-
fccted by the present situation.
"In connection with necessary financ-
ing which will have to be done by the
railroad corporations, 1t is the rule that
no such corporate financing be. un
dertakcn, except certificate Of the
railroad administration. an there
fore the railroad administration, in
sense, acts as clearinghouse for
such financing. thus minimizing the
danger OF financial confusion"
GLASS ASSERTS CONGRESS
ACTION Is "DISkSTROUS"
Before the Senate Appropriations
Committee Secretary Glass said last
week that failure Of the measure ap-
propriating S750.0o0.000 for the rail-
roads would be disastrous. demoraliz-
.Tt will create the situation in rail
road circles" he said. that will
amount to practical suspension Of ac-
tivitieS: interfere with the purchasing
activities Of the administration. II
=! will very greatly impair the credit of
the railroads.
"Thc only alternative that see will
he to have the railroads go out into
the open market and make loans ag-
grcgating nearly $1,000. o00.0 900 from
the banks. That condition would re-
fect itself upon the Liberty loan, and
think In a disastrous way"
Mr.. Hines expressed similar views
before the committee. 1t was eX-
planned today, however, that with new
arrangements for financing the roads.
tho pcssimistic views expressed then
do not necessarily hold now.
GEEK MtMjMc cnMcpCcc