The Republican. [volume] (Oakland, Md.) 1877-current, 1919-07-10

DEFICIT OF HALF BILLION
AS RESULT OF GOVERNMENT
CONTROL OF RAILROADS
Director General Hines Makes Clear
Actual Loss to PEOPLE

Actual Loss to People
That the public already has a de-
felt of nearly half billion dollars
to make up for the railroads and that
there will be no return to the people
for this outlay is one of the points
made clear by Director General Hines
of the railroad administration before
the House appropriations committee.
Deficit Growing
Mr.. Hines was before the COM
mittee to advise it that the railroad
administration was asking for ST.
200,000,000 instead of S750,000,-
900 which it asked at the last ses-
sion. He said the S75O,OOO,00O did
not include anything on account of
deficit in 1919. The half billion
dollars deficit already referred to will
of course, be much enlarged by the
end of the present calendar year.
Taking the appropriation of ST.
200,000,000 which we now SEEK"
said Mr.. Hines, 81 think the best
way to give a general picture of the
situation is to show what would be
the disposition of the funds of the
Railroad Administration if it should
receive that $1,200,000,O00 and
that, of course, would be in addition
to the $5OO,OO0,O0O which wasap-
propriated when the Federal control
act was passed. On that assumption
the total funds appropriated for the
Railroad Administration would be
81 ,700,000,000 and that would be
divided; roughly, into four items,
three of them large and one rela-
lively small.
Zone would be $486,000,000 the
deficit for the calendar year 1918
and for the first four months of 1919.
Another would be S425 900 900
for working capital, both that which
was on hand December 81, 1918, and
the additional working capital which
it is important to have in order to
conduct the business without undue
delay. mean the business trans
actions such as payments for mate
rials and supplies and the payment
of wages.
"The next item would be S775,-
100000 which has either been ad-
vanced for the account of the railroad
corporation or will have to be ad-
vanced according to the best esti-
mates we can make for this purpose.
For Equipment
"The remaining item would be
$14,000,000 invested in equipment
for the inland waterways, which
equipment was purchased in pur-
suance of the policy outlined in the
Federal control act.
Those four items, S4S6, 900, 900 de-
felt, $425,000,000 working capital,
S775,000,000 for the railroad corpor-
ations and which is to be returned
by them, and $14,OOO,O00, for the in
land waterways, total $1,700,000, 1000
which would be put at the disposal
of the Railroad Administration if the
present appropriation were given in
addition to the $500,000,OOO already
given. Of that total of 81 100000 900
the part that represents moneys that
will not be returned to the Govern
ment is he $486, 100000 deficit.
"The $425, OOO,O 900 working capt.
tai will be returned as Federal con-
troll is ended, and the accounts with
the railroad corporation settled
The $770,000,000 which has been adj
vanced or will be advanced on ac-
count of the railroad corporations
will be returned, subject, of course,
to the possible loss of some bad debts,
which | anticipate will be a relatively
small amount, and, broadly speaking,
that item would be returned. The
$14,000,000 would continue to be in
vested in this equipment to be used
on the inland waterways, so that of
the entire 81, 100000 only the first
item, or $486,OOO,OOO represents an
actual outlay with no prospects of re-
turn, and / wanted to devote myself,
first, to putting before you in a broad
way the facts, as understand them,
relating to that item.n
School Board Meeting.