Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-03-06
RAIL ROADS WILL
Be F |NANCED; NO
TARIFF ADVANCES
Or WAGE CUTTING
Predictions of Disaster, Should
Bill Fail to Pass Congress,
Now Found to Be Without
Serious Foundation.
WAR CORPORATION TO
FURNISH HUGE SUM
Companies VIII Borrow What
ever Additional Amounts
Necessary Not to Hurt VIC
tory Loan Campaign,

Washington, March 5.-The gov
eminent today determined to retain
control Of the railroads despite fail
IRE of congress to provide funds for
the railroad administration and to
have the roads finance themselves for
the next few months through private
loans on the open market or through
advances by the war finance corpora
ton,
Efforts will be made to maintain
operations on a normal scale and to
carry on as much of the improve
ment program as possible, in order
to avoid throwing employees out of
work or otherwise disturbing indus
trial conditions. No attempt will be
made to solve the problem by raising
rates.
These assurances We're given by Di-
rector General Hines in public state
ment and in an address to the con
ference of governors and mayors
meeting here. AT the same time, it
developed that the war finance cor
poration has about 1897, 1000, 600 re-
sources available and much of this
may go to railroads to supplement
the sums they can borrow until con-
gress meets again and has opportun-
ity to appropriate funds.
VIII BE Financed.
After prOtracted conference be-
tween Secretary Glass and other Of
ficials of the treasury and war finance
corporation, it was stated that means
probably would be developed to keep
the railroads off the money market
as much as possible. and minimize
interference with the forthcoming
Victory Liberty loan.
A1thpuph nj amman rod onttI11iG-
tic, they explained that much manip- |
ulating of financial machinery would !
be necessary and a definite program |
could not be developed for some time. I
Their somewhat cheerful attitude !
was in contrast to the rather pessim- |
istic utterances of Secretary Glass |
and Director General Hines before !
the senate appropriations committee |
in executive session last week, com
menting on the possibility of the APP
preparations failure. The testimony
was made public today.
Statement by Hines.
There would be two general ways |
in which we might attempt 10 adapt !
ourselves to this new situation so SUD |
denly created" said Mr.. Hines today, |
addressing the conference of COVER !
nors and mayors. "One way would |
be to cut down expenditures as rap |
idly as possible in every direction, :,
even though these expenditures were
highly desira BILE, The other way
would be to try to resort to every
possible expedient to prevail on the
railroad companies and the other bus
mess interests affected to borrow the
necessary money to enable us to go
forward with these expenditures, and
] am emphatically in favor of the
plan which contemplates financing
these matters so we can go forward
with the expenditures rather than of
the plan of cutting off the eXpendi-
lures so we can avoid the financing
l am absolutely out of sympathy with
any policy which contemplates the
slowing down of industries for the
purpose of throwing men out of en-
ployment on the idea that thereby the
rates of wages may be cut down for
the future
VIII Borrow Money.
approaching the matter along
those lines, it is going to be my policy
and with the most cordial co-opeTa-
ton OF the secretary of the treasury
and of the war finance corporation to
try to find every way we can to re-
the treasury and the railroad
through getting the
to borrow the money to
pay back advances which have been
made and which it will be necessary
to make to carry out our program.
IT is going to be very difficult, but
we are approaching it with the de
termination that we will make it sue
coed in Il very large extent and that
we will get a large measure of pa
triUtc cooperation from all the in
tercsts which are affected.
In statement, Mr.. Hines said:
In connection with the considera-
ton Of this question, there has been
no discussion of raising rates, either