New-York tribune., 1919-03-20
plans for Bet.erments to
Wait Until President
Calls Special Congress
Change in Policy Noted
Radrct for improvements
Involves Expenditure of
s662,0OO,O06 Extra
Nem York Tribune
Vashtn gton Bureau

,stiYoad "Vi n
lines. etc.-that can possibly be
IN have been stopped by order OF
1 - - railroad administration pending
:" .,nt;on of the financial problem OF
v.;1roads brought about by the
''anre Of the s75o,ooo,ooo revolving
iaad appropriation to pass before ad-
,.urnment of Congress.
II is hoped that President Wilson
-;ur.ll Congress together rs speedily
;. nossible to solve the situation by
,otiug the necessary funds.
This step came as surprise, in view
!, the statement of Director General
limos ON March S, just day after
r.rrress adjourned, that every pos
.,,,s effort would be made to avoid
,,v;nr off any workers, as this order
veins laying off or putting on short
,;u. many men at time when the
unemployment situation is giving the
Administration serious concern and all
.rts Of legislative remedies are being
pressed by the Secretary of the In
..rior and others to provide work for
the returning soldiers.
Total of 1862 100000 Needed
On January / there was still to be
e,peuded from the 1918 budget S337,-
100000 for additions, betterments,
,tc. and the Federal managers had
submitted additional budgets for 1919
amounting to S325,0O0,0 ,00O-a total of
ss62,o0O,OOo.
Emergency financing now being done
By the railroad administration and
the railroad companies only provides
! for the payment for equipment and a
! portion of the 1881 100000 owing by
. The government TO the railroads on
hst years account. Therefore this
cannot be used, except in exceptional
Instances. it is declared for additions
and betterments.
Following is the text of a circular
sent to all regional directors by 7.
c. Powell. director of the division of
capital expenditures of the railroad
administration:
In the light of the present financial
situation, corporate officers who prior
\ othis date had agreed to finance GER
tslnaddltions and betterments chargea-
bi: 70 capital account nowss express a
dssre to review these authorities, and
alter Conference with the undersigned
the following telegram was to-day sent
to the executives of all member roads
represented by the Railway Executives
Advisory Committee by Mr.. Howard
Elliot, acting chairman:
after conference to-day between
Ar. Powell director of division of
capital expenditures, and myself. it
vas understood the following tele-
gram should be sent by me to the
executives Of all member roads:
Limit of $1,000 Fixed
please be advised that the di-
rector, division of capital expendi-
lures. United States Railroad Admin
~ which is now in the hands of all
regional directors and Federal man
esers, requiring that the definite po-
nsion as to approval or disapproval
VI ire corporate officers shall be Sc
safed before any work costing more
nan si,oo0 shall 20 forward, whether
sany-over or new work. In the
s4ent corporate officers desire TO re-
soasider under existing conditions
aaay approvals heretofore given by
.aem lot additions and betterments,
,hesher carry-over or new work,
.heF are authorized to take up at
'nce the withdrawal of such previous
syp'oyais with the Federal managers,
aao' before proceeding further, will,
- aeeordance with said Circular 10,
ss',s the situation to the director
ne - ne division of capital expendi-
'ssa Tor his special instructions.
.:asss assumed the corporate officers
., au,.1m Immediately act on this message
,"n You please instruct each Fed.
,as .. manager TO afford the proper cor
/ ,sss'. ese on icer upon application, full op-
,a.aty 10 review projects chargeab
!, ap'tai account. whether in progress
| 'ontemplated, including not only
= 'tems IN the 1919 budget and or
/ ,o,a % a. forms approved since January
lis' nuf also all uncompleted items
ats .s earry-over from 1913?
x,tt ns .ns corporate officer withdraws q,
sssn9es approval of any project, fol-
sssi reasons or otherwise, please
Eeseed as follows: p''"S
to, work not started shall not be
hw'asn.eneed without further approval
Wthis division. "'p'''a
AZ AS to projects already startee
~ actually under way. please see tina,
s'ur,ner work is done, except:
ail, wneh wMh necessary to insure safety
sI.,s1I = mere the project is so far com
tsnsn.. WA. TO stop work would be more
sges"sive We than to continue it.
ss. mere job is covered by bons
ssa,d diVn,ract and stopping the WORK
sss.. u ssriously demoralize conditions
.'a,iy ar to working forces.
10, az caaes where the Federal man.
ssy. ano regional director believe the
sts should be done, whether AZ 70
ssw nofk or as TO continuing work
rs;,.a'na progress, even though Tho
@fzs. company withholds or with
spseer.,ss ~ approval, full report should
tso,ssp, ne made TO the division oil
sss,ss< expenditures with COPY
tany, 70 the president Of the com.
ass, aSrssr,. stating the objections or dis.
VII tsmnss that cannot be overcome
iss ~ definite recommendation oi
tsrtrtaefai manager and regional
reysl ara, pending further an.
ssesid y ,nis division, no such work
sidsdie sidsd ,x pc started and, except AZ pro.
Ii p,an. - section 3 above, no such wors
0sfesx ~. should be carried on
'cignedJ "r. G. POWELL
Details Shoe, ky r.n