Pine Bluff daily graphic., 1919-03-06
Private Loans May Be Sought to Finance
 Work.
HOPE TO CONTINUE
 IMPROVEMENT PLAN
No Attempt Will Be Made to Solve
 Problem By Raising Rates.

Washington, March 5.--The gov ernment today determined to retain control of the railroads despite fail me of congress to provide funds for i the railroad administration and to have the roads finance themselves for ! the next few months through private loans OH the open market or through advances by the war finance corpora ltion.
 Effort will be made to maintain op- IeratlOns on a normal scale and to carry on as much of the improvement program as possible, in order to avoid throwing employees out of work or ! otherwise disturbing industrial condi- tions. No attempt will be made to solve the problem by raising rates.
 Hines Makes Statement. | These assurances were given by Di- rector General Hines in a public state ment and in an address to the con ference of governors and mayors meeting here. It developed that the war finance corporation has about $337 ,000,OO0 in resources available and much of this may go to railroads to supplement the sums they can borrow until congress meets again and has opportunity to appropriate funds.
 After protracted conferences be- tween Secretary Glass and other off cals of the treasury and war finance corporations, it was stated that means
 probably would be developed to keep the railroads off the money market as
 much as possible and minimize inter- ference with the forthcoming Victory
 Liberty loan.
 Although officials appeared opti- mistic, they explained that much ma tnipulating of financial machinery
 would be necessary. and definite
 program could not be developed for some time Their somewhat cheerful
 attitude was in contrast to the rather
 pessimistic utterances of Secretary
 Glass and Director General Hines be- fore the senate appropriations com mittee in executive session last week
 commenting on the possibility of the
 Appropriations failure. The testimony
 was made public today
 Have Two Plans.
 "There would be two general ways in which we might attempt to adapt
 ourselves to this new situation so sud- denly created" said MT. Hines today addressing the conference of gover- , nors and mayors "One way would be
 to cut down expenditures as rapidly as possible in every direction, even , though these expenditures be very high.
 "The other way would be to try tC ? resort to every possible expedient tC prevail on the railroad companies anC the other business interests affected to borrow the necessary money to en able us to go forward with these ex penditures and l am in favor of the
 latter plan. I am absolutely out ot
 sympathy with any policy which con templates the slowing down of indus tries for the purpose of throwing mer
 out of employment on the idea tha thereby wages may be cut. May Borrow Money. :, 'It is going to be my policy ant | with the most cordial cooperation O the secretary of the treasury and Q the war finance corporation to tr! to find every way we can to reim purse the treasury and the railroad administration through getting thu - corporations to borrow the money t. : pay back advances which have beer made and which it will be necessary t. I make to carry out our program. | is going to be very difficult. but w
 are approaching it with the determin e ation that we will make it succeed il n very large extent and that we vii get large measure of patriotic co - operation from all the interests whic e are affected"
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