Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1919-03-07
ROADS BACK DEBTS
ARE SSl MILLIONS
Railways I.sae WItAepf Means 70
Garry Oat Preggam 81 I'm.
pr0yememt

The railroad administration Is prac-
tically without funds It has ABOUT
1884 600 900 81 back debts aud no
means ID carry out it's program of Inn
proyements planned for this year TO-
relieve the labor situation. This state
Of affairs Is caused by the adjourn
ment OF congress without appropria-
ding the $3.50 900 900 desired for rail
roads.
Immediate REIMBURSEMENT Of the
roads to private management doomed
Us possibility, but officials said this
would be done only IL II finally ap-
peared not feasible tor the railroads
to borrow privately the millions need,
or ID have the war finance corporation
extend larger loans t0 the companies
Director General Unable 70 Say
Director General Hines, after con-
ferences with Secretary Glass and
Eagene Meyer. Jr., managing director
Of the war finance corporation, made
Ithis statement:
THE railroad situation Is so com
pIicated BY this recent development,
and there are so many possibilities
that cannot say at this time what
may be done with the railroads
Several treasury officials IN close
touch with financial conditions ex-
pressed belief that the railroads could
obtain loans privately TO tide them
over the next few months, although
perhaps at high interest rates. Ia this
connection d conference OF leading
bankers with treasury and railroad
ministration officials was proposed
War Cooperation Nay Lend
The war finance corporation Il was
announced. already has lent s7i sos
loco to railroads. II has authorization
to advance several hundred million
dollars additional under war powers
on adequate collateral, and AT rates AT
least one per cent highsr-Shan current
Arates for Einety~day paper. Officials
question, however, whether the terms
of the act could ia Interpreted LIBERAL
tly enough to permit tie corporation
1 to go into this wholesale financing.
Only d few million dollars remain
III the railroad administration orig
NAL sinking fund barely enough 70
/ run the administration machinery it
self. In addition to paying 1881 ,0O0.-
900 to railroads for settlements Of
/ 1918 accounts, the railroad admins
i tration had planned to use this year
/ $4g1 900 900 for improvements, Sl2,-
$40 900 OF which would go for inland
waterways Unless funds can be pro-
vided soon. the railroads will remain
UNPAID, and ii turn they may be slow
In paying their bills for supplies and
materials, 1t was pointed out.
The treasury Is anxious tn avoid
Throwing railroad securities on the
market before the Victory Liberty
loan campaign. and for this reason
viii try to arrange b means of supply
ing credit through the war finance
corporation, II this IS possible
Loans Already Made to Roads
Loans already made BY the wal
finance corporation 10 railroads, as
announced. are as follows: Baltimore
4 & Ohio, $3.50, 600; Southern, 1862,
600; Rock Island, SIC, 10000 Illinois
Central, sI2 1000 900 Chesapeake Z
Ohio, s2,37O,OO0: Central of Georgia
5000 900; Chicago. Milwaukee and ST
Paul, $11500 600. and New York Cen
trail, $40 SOC, 600.
Thomas Dewitt CuyIer. chairman d
the Association of Railway Executives
said. We cannot help but believe tina
iii some way funds will be found Z
meet the situation. at least temporar
b fIy, until congress at b special session
has an opportunity to make the neces
saYy appropriation.