Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-12-27
TIME To UNLOAD
GOVERNMENTS ADVENTURE IN
RAILROAD BUSINESS COSTLY.
Deficit OF Nearly $4,000, 900 Must Be
Made Up by Taxpayers and Ship.
pers-Work Of Turning Back Rail.
roads to Owners Without Bankrupt.
ey Big Problem.


poning the restoration of the roads
to their owners, President Wilson
acted in accordance with the recon-
mendation OF Walker D. Hines, d.
rector general of the railway admin
stration. Mr. Hines transmitted to
the president ten days ago an ex-
haustive analysis of the condition of
the roads as the result OF two years
OF government operation. His con-
clusion was that the roads would
face bankruptcy IL they should be re-
turned without ample provision for
their financing. He urged that op-
portunity be allowed congress to en-
act the pending legislation before
the restoration should take place.
Hines Makes Appeal.
AS soon as the proclamation was
issued, Director General Hines sent
thru the regional directors the fol-
lowing appeal to all officers and en-
ployes of the railroads:
THE proclamation which the
president has issued fixes March l as
the date for the transfer of the rail-
roads back TO the possession and con-
troll of the railroad companies. | ap-
peal to every officer and every en-
ploye TO redouble his efforts to pro-
duce the best and the most eConomi-
cal railroad service possible during
the remaining period of federal con-
troll.
During the unusually heavy bust
ness of the last few months and the
extraordinary difficulties created by
the coal strike. the officers and en-
ployes have done especially fine
work, so that with more confidence
than ever before, l express the hope
that all of us will give the best &C
count of ourselves in this remaining
period in our common interest, and
in the public interest. | extend to
all of my comrades in the railroad
service and their families my sincere
wishes for q merry Christmas and a
happy New Year"
Deficit StS6. 900, 900.
The government as a result Of its
adventure in railroad operation will
have a deficit Of at least $4S6, 5000
OGO. officials Of the railroad admin
istration stated. OF this amount
$236, 100000 represents the loss for
1918 and $3.50. 100000 the 1919
deficit.
For the last six mCnths, however,
the roads under federal control have
been accommodating small SURPRISES
monthly, and at the railroad admin
istration it was stated that this was
expected TO continue until March l..
Congress, according to recent es-
innate OF Swager Sherley, railroad
finance director, will have to appro-
pirate s64T0O0.O00 TO wind up fed
eraI control. This is in addition to
the appropriations of $3.50, 600, 900
previously made. Much OF the new
appropriation will be in short term
loans to the railroads.
Face Big Problem.
To the government credit appears
now about $3.50, 100000. which the
roads owe for new equipment, other
improvements and loans TO meet de-
mand obligations.
The work OF getting the roads back
to private ownership is expected to
be big task. Work along this line
will be started Immediately by the
railroad administration. The roads
have become so mixed up under fed
eral control with respect TO inter-
change Of facilities that the complete
"unscrambling" is not expected for
several months after March |. Di-
rector General Hines will continue in
office, the proclamation of the presi-
dent indicated. until this work is
well under way.
Cummins Approves Move.
Senator Cummins, chairman of the
senate committee on interstate com
merce, expressed approval of the
presidents action.
u think the retention Of the rail-
roads until the legislation which is
now imminent becomes effective is
very wise move on the part Of the
! president" said Senator Cumpins.
1T has been my position all the'time
! that the railroads ought not to be re-
turned to their owners until we have
! legislation. 1t is quite evident that
| the president is looking at the leg
islation that is now pending and has
made a fairly accurate estimate OF
the time that will be required tc
perfect the bills that are before the
| conference committee.
80 far the conferees have dis.
cussed the points of difference in the
senate and house bills rather fully
without attempting to reach ar
agreement. It has been my belief
that it would take the greater par
| of a month for adequate Legislation
by the congress, particularly in view
Of the fact that one house already
! had passed railroad bill and an
other was about to do so.
Early Action Planned.
ITO have returned the roads Jan
1 without adequate legislation woult
have given rise, as the presiden'
points out, to legal and financial diff
| fculties OF a very grave nature. Tit
president, realizing this, has done
much thru this proclamation to clari
fy the situation. This extension o.
time will have no effect in delaying
the work Of the senate and house
conferees on the railroad bills.
I'VE will go ahead as rapidly AZ
possible with a view to making az
/ early conference report. think tina
two months allowed by the presl
dents proclamation will give ampl'
time to congress for completion OF (
railroad control bill.
1.-THE presidents proclamation will
Immediately create a feeling Of conf
dence that has been lacking on &C
connt Of the presidents previous de
cision to turn the roads back Jan.
and. because no word had been re