The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-10
TO URGE CONGRESS
TO AID RAILROADS
BANKERS and Officials Discuss
vital Financial Wants
Of Roads.
MAY NEED S1,0OO,OOO,O0O
Conference Decides Revolving
Fund Should BE Replen-
ished to $750,0O0,OOO.

vital necessity that Congress replen-
fsh the railroad revolving fund to the ex-
ten, of at least $3.50. ooo, 900 at the
earliest possible moment, the amount Of
burden assumed by banks on account Of
railroad requirements In March, April
and May and to be assumed in June and
on July and and the outlook for
remedial legislation were discussed yes
,erday at n luncheon conference in the
ofhces OF J. p Morgan a Co.
At the conference were Thomas De
Witt Cuyler. chairman of the Associa-
ton Of Railway Executives; Alfred p.
rhom, general counsel OF the assocla-
ton. j. Z. Morgan. George f. Baker.
ST., Charles steele. Dwight Morrow and
w II Porter. 1t was set forth that the
United states Railroad Administration,
tho War Finance Corporation and the
bankers can scrape along with n $780,
O00, 900 addition to the revolving fund,
provided that the fund should be granted
promptly. but that minimum amount
in excess of 81. 900. 100000 would be re-
quired during the course OF 1919. pro-
vided there should be no increase In
,ailroad rates or no improvement in
earnings.
Nearly three hours were devoted to
DISCUSSION of the problems which con-
front the bankers and rail executives
and the definite conclusion. was reached
that an effort should be concentrated in
urging Congress to act promptly in the
matter Of aiding the financing of the
railroads and the Railroad Administra-
ton. There appeared to be no desire
20 embarrass Congress, but merely the
wish to set forth as completely as pos
sible the issues at stake and the con-
,luctive progress needed.
The extent of the burden placed on the
banks by the failure Of the Congress
which expired on March 4 last to re-
plenish the revolving fund. 1t was said
yesterday. has not been grasped fully by
bankers. TO say nothing OF investors In
general Leaving out financing of equip
Inent companies and railway supply
houses, bankers by July 2 will have
loaned no less than SETS, 5000. 900 to meet
corporate requirements and extend Sc
cured and unsecured notes and the War
Finance Corporation will have loaned
about $4,000, 900. The total bank
loans. including financing OF equipment
companies and railway supply houses
and corporate requirements prior to
March /. are estimated to have exceeded
= $500 900, 900 and to approach $780,
100000.
Exact figures of the burden on banks
March / to and including April the
railroad corporate requirements were
$4,000. 900, OF which the bankers pro-
vided half and the War Finance Cor
porstion the remaining 80 per cent. From
April 20 and including May the rail-
road corporate requirements were $s0,-
10000. of which bankers provided about
half and the War Finance Corporation
half In addition. bankers had to carry
IA . mn
unsecured notes. From May 2 TO and
including June I the railroad corporate
requirements are estimated at s46.500-
100. OF which bankers and the War
Finance Corporation will go fifty-f1fty.
In addition bankers will have TO carry
$50 100000 secured notes and SIS ,oo0,-
600 unsecured notes
The real rub will come between June
and July =. when the railroad corpo-
rate requirements are estimated at $l13,-
600 900. Of which bankers and the War
Finance Corporation each expect TO do
sbout half In addition the banks will
ave TO carry about s3<.000,oo0 secured
iotes and sl0.o00,0o0 unsecured notes.
7 Is hoped that the revolving fund will
he replenished in time TO aid bankers In
landing the July burden.
The bankers have not only provided
half OF railroad requirements to date,
With the expectation Of providing at
East half TO July .. but have carried
S,3.oo0,0o0 in secured and unsecured
notes and aided materially in fnandng
equipment companies and railway supply
houses.
Following the conference OF yesterday.
~ which tho decision was made to ig-
iore for the time being the large prob
lens which will be involved In the return
Of roads 10 private operation and TO EN-
i'hasIze the vital Importance of re-
penishing the revolving fund literally,
was asserted that all interests, which
have been working on plans for remedial
legislation and constructive work in CON
lect'on with railroad development, are
drawing gradually nearer together. The
hope was expressed that Congress would
'tt to work In earnest early this fall on
NE problems affecting the roads and
through them the finances OF the United
ttates.