The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1919-03-26
CANADA PROTECTS HER VETS
OBTAIN FUNDS
FOR RAILWAYS
War Finance Corporation to
Make Direct Loans

WASIliNGToN, March 20
Plans for financing the railroads
under federal control until con-
gross appropriates sufficient funds
for capital expenditures have been
agreed upon between the war H.
nance corporation. the railroad adj
ministratlon and the individual
roads.
The war finance corporation viii
make direct ionns 10 the railroads,
EHgcnc Meyer, Jr, managing d.
rotor ~ the corporation. Announc-
al today.
The war finance corporation al
ready has begun filling applications
for advances from the individual
roads TO meet their April require
meuta. Meyer said The railroads are
offering as collateral for their own
notes. certificates of Indebtedness
issued Go them by the railroad ad.
ministrauon.
Get SIG 200. 900
To date the war finance corpora
ton has loaned $4,000 900 20 the
roads. This sum includes $50. 900 900.
which was advanced 10 the railroad
administration.
THE policy OF lending money 90
railroads IL expressly provided for ia
the act under which the war finance
corporation operates" Meyer said.
The policy. therefore. which IN
now being pursued In loanlng funds
for the operation OF the roads. II
entirely IN line with IN. original in
tention OF congress. as expressed by
the statute. and also In line with the
settled procedure OF the war finance
corporation thru the course Of it,
brief history"
Officials Of the corporation de
clarcd that with the certificates OF
the railroad administration attached
70 the railroads collateral. these
notes Of the railroads could be
turned over TO private financial IN.
Htitu,ions later. II necessary. But
for the present. II wnH said. tho war
finance corporation VIII hold the So
eurity for the loans themselves.
Eliminate Trouble
II was the belief here that the
agreement which provides funds for
tn. railroads will 30 "A long way to-
ward elimination Of scrioua trouble
In tho financial world The loco
motive car and equipment companies
already have provided ways for oh
tanning the money due them from
the railroad administration. This
amounts TO about siio. 100000.
Tho railroad administration has
given the equipment companies
trade acccptancca which the manu-.
factnrers may rcdiroount at federal
reserve banks. thus turning funds
into the hands OF the manufacturers
Immediately.
Director General Hines recently
stated that the railroad adminlsira.
ton would require 1901 .ssT 900 to
finance i,s needs 10 June 30. By sep.
aratr agreements with tn. locomo.
tive. car and equipment companies.
this figure IN reduced To 1891 600 900
The war finance corporation has
loaned the railroad administration
sso.ooo.ooo which win bring cash bal.
anccs in hands ~ federal ireasurrrs
W 10 5000. 600 900. which Is the nor.
NAL working cash capital for ono
month.
The war finance corporation.
therefore. probably will be called up.
on To loan approximately $500. 600.
600 20 the various railroads.
However, IL was pointed out. this
figure may be increased as condl.
tons change. or II may be lowered
II the amount Of traffic 10 be handled
by the railroads increases. thus pro
vldlng more revenue.