Pine Bluff daily graphic., 1919-01-25
ADMINISTRATION ASKS S75O,O0U MORf
 FOR RAILROADS
Loss Incurred in Operations
 Last Year.
$368, 100000 NEEDED
 TO OPERATE IN 1919
Many Improvements Planned For
 This Year.

Washington, Jan. 24.-The railroad administration needs S750,O00 more for it's revolving fund to supplement the $500,000,00O originally provided and now practically exhausted. In pre- pairing this estimate for congress to- day, Director General Hines explained that $196,000000 of this sum repres- ents loss to the government, incurred in operations last year, and the re- mainder represents advances to rail- road companies to be repaid eventually with interest.
 Congress will be asked immediately to appropriate this amount which Mr. Hines declared would be neces- sary regardless of whether the rail roads were returned to private man. agement, within a few months or re- tained longer.
 Plan Improvement.
 The Directar General estimated that $368, l93, ,O00 would be required this year to finance capital enter prises, such is improvements and pur- chase of cars and locomotives.
 This figure also includes $12,840,- 900 for contemplated expenditures on inland waterways, and $20,000,000 to finance reorganization of the Boston and Maine.
 For 1918, the demands accumulated against the revolving fund.- included. Additions and betterments financed by the government, $290,918,000, cash on hand employed as working capital, for which railroad companies must be credited now and charged when gov | ernment control ends, $247, 100, 900; ! other working capital in the shape of conductors and agents balances, loans made to companies with materials and supplies as collateral, less current lia- bilities on these accounts, YJ1 ,952 ,0O0; loan to New York, New Haven and Hartford involving reorganization ] of finances $51 ,475,0O0; advances for inland waterways, all but about $500,000 representing investment in boats and other property, $4,361 ,O0O. 1 These items total $685, ,8O6,000. Loss Immense.
 This sum, together with the $780, l 000,000 loss to the government on ac- count of the difference between oper- ating income and returns guaranteed the roads, make $881, ,8O6,00O, for, which the government would liable on account of 1918 operations when all railroad accounts for the year are set- tied. The addition of $368, 193,0 ,000, estimated requirements for 1919, makes $1,250,000,000 estimated drain on the revolving fund for 1918 and 1919 and with allowance for the $500,- 100000 already appropriated also the needs are computed at $750,O0O, ,000. The director general refers to this as q minimum requirement.
 This report also shows that the present revolving fund is $381 ,8O6, ,000 too little to settle all accounts for 1918.
 "A large part of these expenditures must be provided for in the first few months of 1919" said the Director General "and we are compelled to al- low for the situation that during the period prior to the next liberty loan campaign and during that cam paign it would not be desirable or practicable for railroad corporations to do large part of their own finan- cing
 Appropriation Necessary.
 "Whether government control shall
 ontinue until the end of the 21 months period, or shall be terminated in tho next few months, it is equally neces- sary that the appropriation above recommended be made. If the control continued for the 21 months period. it is my belief that we cannot count upon the railroad companies financing in 1919, any greater portion of their capital expenditures than it is above assumed they will finance. On the other hand, if control should be ter minated in the next few months, it will still be true that very large part of the capital expenditures for 1919 , will have been made. Possession of , an adequate fund to facilitate the transfer back to private control and to give temporary aid in faneing will be highly desirable"