Daily Kennebec journal., 1919-12-25
Extension Necessary
fN>~A;.uAl <eAvu Paoo OnOl


for the railroad administration. probab-
iy viii be the man chosen to wind up
the governments business In railroad
ing.
Even Tiger problems confront tae
express companies. Consolidated INTO
one system under government operation,
the four original corporations are re-
ported to have asked the department
of justice II there would be any VIOLA
tion Of the Sherman antitrust law IN
their remaining unit.
In two years of physical possession
OF the railroads. the government has
encountered q deficit of approximately
ss46 600 600, according to estimates sub
mitted by Mr.. Sherley to Senator Cum
m'ns. When the roads we're taken over
Jan. I, 1918. Congress guaranteed them
a rental of 500. .ooo.o0 annually. tased
on the average income, of a three-year
test period. Operating revenues In 1913
fell Sa36. 1000, 900 below the standard re-
turn, and this year will be about $780,
f0a,0C0 under that amount. The remain
der of the deficit has been inquired in
expenses of administration, inland wa
terways, etc.
Two applications have been made by
Congress, one of $500. ZOO. 600 and the 9TH
er of s750000.t00 much of which has
been used as a revolving fund by the
railroa- corporations and for the pur-
chase of new equipment. These amounts
will be repaid to the government.
After the Presidents proclamation
was announced, Director General Hines
made public a message to all officers
and directors of the railroad admins
tration thanking them for their cooper
a:ion in the past and bespeaking their
best efforts in the remaining period Of
federal control
Lenders in Congress gene ally exIres =
ed approval of the Presidents action In
pcstponirg the return of the railroaGs
Il think the President has done the
right thiag,' said Senator Cummins Of
Iowa. chairman of the Senate interstate
commerce committee and chairman cf
the subcommittee which framed the
legislation known as the Cummins bill.
1T wouli have been very unfortuna e
fore necesz airy legislation had been
enacted Legislation to meet cond tions
in connection with the reversjon of the
properties undoubtedly will be sent %
President Wilson within the next
mcnta. 1t may be possible to complete
the legislation before the end OF jan
uary'
Director General Hines sent the fol-
lowing telegram tonight to all officers
and employees of railroads in federal
control:
THE proclamation which the Presi-
dent has issued fixes March | as the
date for transfer of the railroads back
TO the possession and control of the
cai companies. appeal to every
officer and every empIoye 10 redoub.e
his Efforts TO produce the best and the
most econom cal railroad service pos
sible during the remaining period Of
federal control.
During the unusva'ly heavy business
oi the past few months and the extra
q nary n'hiculties created by the coal
strike the officers and employees have
done especially fine work. SO that with
acre confidence th-n ever before I ex-
press the hope that all OF us will give
me very best accoupt of ourselves in
this remaining Period, in our common
interest. and in the pdblic interest I
extend to all of M comrades in the
railroad service ard their families nv
sincere wishes for merry Christmas
and a ha-p~ New Year"
The Presidents proclamation relju-
gushing control OF the American Rail.
way EXPRESS Co was couched in prac-
u'ailY The same verbiage as that in re-
Gard to the restoration of the railroads
70 ther owners, except for necessary
substitutions