Arizona republican., 1919-05-25
HINES REQUIRES BILLION TO PAY
 RAILROAD LOSS
Director Asks Huge Sum of Congress -Itemizes Var ious Needs Money is to Be Used For-Rate Advance Improbable = May De mand More Soon
Republican A. p. Leased Wlre1

WASHINGTON, May 24-To finance the railroads for the balance of this year and to pay the governments oper- ating loss for sixteen months up 10 this month, an appropriation of 1,20e,- GOO, 900 was asked of congress today by Director General Hines. More will be sought later, if the government con tinues to lose heavily.
 The S1,200,000, 900 is in addition to the $500, 1000, 900 appropriated by the last congress, and includes the $780, 000,00 which failed of appropriation. Out of this appropriation railroads will be paid the sums due them months ago, as. standard compensation, and for which they have accepted the railroad administrations certificates of indeht- edness. On security of these certifi- cates, they have borrowed from banks and the war finance corporation to meet their current corporate obifsa tionS-
 Approximately s4Ss, 900, 900 repre- sents the governments loss in operat- ing the railroads from January 1, 1918, when private control ended, to May l. This is the difference between the sums for which the government is obi gated to pay the roads on contracts and the net actual operating income from operations.
 The detailed items listed by MT Hines in his letter requesting the ap- propriation were as followed:
 ltemizes His Needs
 Requirements for 1918: Amount nee essary to defray operating deficit-the difference between the standard rental payable to the railroad companies, and the net operating income for the year 1918, s236, ,1S4, $40
 For net excess of current assets over current liabilities, partly available for the immediate working capital require ments, 01,93S,19s.
 Improvements on inland waterway avs, S2,641,SS6
 Amounts advanced for account Of railroad companies to enable them to pay in part their current liabilities, S100, GOO, 900.
 | Amount of additions and better ments expenditures, including equip ment, made to the railroad companies properties during 1918, which must be carried by the railroad administration for the time being, 1852, ,55S,451.
 Loans during 1918 to railroad com ] 4SS,s5s.
 Total requirements for 1918, ss41, So2,43S.
 Less amount heretofore appropriat ed s500,o 900.
 Balance required for 1918, $441, ,So3, 43S>
 Estimated requirements for 1919:
 For amount of additions and better
 ments expenditures, including equip ment, made and to be made to the rail road companies properties during 1919
 which it is believed will have to be car ried by the railroad administration fol
 the time being, s253, 4S5,760
 For improvements to develop inlan,
 waterways, $11, 100000. For financing Boston and Maine rail
 road company, reorganization, s20,000,
 o0o.
 For additional working capita
 s223, ,S02.
 Total estimated requirements fo , 1919, s758,197,562.
 Grand total requirements for .19f ;; and 1919, s1,200,000,000. Some to Come Back | The balance, or about s1,214, 900, 00i of the s1,750, 100000 now appropriate , or sought, represents working capita to be repaid to the government even
 tually. This was explained by M 2 Hines in his request for the appropria P tion submitted to congress throug s Secretary Glass. $ The deficit last year was $236, ,1Sf0 0e ! and in the first months this year, tn E governments loss was about $250. .0o0
 900. These, said MT. Hines, ''are clear ,, ly losses due to the war and ought [ :. be treated as such. By reason of th i, after -the-war factors tending ! chang the situation, the estimate here :. with submitted does not attempt forecast results beyond the first foJ
 months of this calendar year . . This commitment of the directt general prompted belief that the ac
 ministration might have to call on cor gress for additional funds to make | T a future deficit. Such a situation misl }, be met by raising rates, but the d q rector general has stated recently th; he does not wish to consider this uni Q opportunity is given for general bus n ness conditions to be restored to mo = normal basis This is interpreted
 meaning that there probably be no ra | advance before next fall, and the = rector generals attitude is that it ma tt then be unnecessary to raise them. n -O-