New-York tribune., 1919-03-19
Hines Plans
DrasticCut i'm
Rail Expenses
Makes Ready to Reduce
Overtime Work and
Employ More L a b o r
Advances $1OO,OOO,OOO
War Finance Corporation
Provides a Large Amount
for the Carriers

Director General Hines is planning
drastic curtailments in expenditures
for operating the railroads of the coun-
try, it was asccrtained yesterday. He
and his assistants are working on plans
for taking on additional railroad work
charges for overtime. 1t is believed
that 10 per cent can be saved by
eliminating overtime work, for which
time and half is credited.
The railroad administration is also
said to be anxious to postpone improve
ments and bettermcnts, especially in
cases where work on outstanding con-
tracts has not been started. The chief
obstacle in connection with reducing
overtime work is the attitude that the
railroad brotherhoods, who have be-
come adjusted to existing conditions,
might take to what might be considered
reduction in wages. These questions,
1T was learned, we're taken up Monday
at meeting of Director General Hines
with regional directors at the Grand
Central Terminal.
Much Idle Equipment
The number of idle freight cars has
been mounting in the last few weeks
and, according to estimates in we'll in
formed railroad circles, between 2OO,-
600 and 100000 cars are now idle IF
the deficits incurred thus far this year
are continued the deficit for this wear.
it has been suggested, will approach
$500, 100000. Realization of this con-
tIngency is causing the railroad admin
lstration to seek means of retrench-
ment in expenditures.
Approximately s100,000,OO0 has been
advanced to the railroad administra-
tlon by the War Finance Corporation
since Congress at its closing session
on March failed to make the $780,
100000 appropriation needed to enable
the government to meet it's obligations
to the railroads. Among the benefi-
cares Of these advances have been
the Pennsylvania Railroad and the New
Haven system.
OF the s100, 100000 of railroad ma
turtles that fall due on April /, bank
ers said yesterday that plans we're
being formulated to have the bulk
either extended or paid off through
loans from the banks. This step, it
was SAID, had been taken at the sug-
gestlon of the government authorities,
who have expressed the wish that as
much railroad financing as is practi-
cable should be done through the usual
channels. In view of the short time
character of the loans contemplated. it
IS not believed that the approaching
financing arrangements will interfere
with the Victory Liberty loan.
Little Progress in Warrant Plan
Since the conferences in the financial
district last week, attended by bankers
and Eugene Meyer, jr., managing direc-
tor OF the War Finance Corporation,
the proposal Of the Director General Of
Railroads that the railroad administra-
ton may meet it's obligations to the
carriers and the equipment companies
through loans based on government
warrants and equipment acceptances,
little progress has been made to carry
out those plans. Bankers stated that
the next step would have to come from
Washington. 1t is expected. however.
that more definite information will be
forthcoming as the result Of the next
conference of the Director General
with the committee of railway execu-
tivcs of which Howard Elliott is chair
man. Owing to the death Of Mr.. Ell
llotts daughter, this meeting, which
was to have taken place today. has
been postponed.
Sir Eric Goddess statement in the
..NNoC VI NcIIiIIOuS MONDAY that the
English railways, after four wears Of
government war control, are in a "semi-
paralyzcd financial condition." and that
the British government is now losing
S1,25o,ooO day operating them, con-
firms reports that American railway
officials and bankers have been receiv,
ing from their correspondents abroad.
Frank H. Fayant, assistant to the
chairman of the Association of Rail
way Executives. who recently returned
from Europe, where he made an in
vestigation of the effect of the war On
the, railroads of England and France.
declared yesterday that the whole
English railway system is potentially
bankrupt and that the burden of meet
ing the deficit in operation and paving
rental to the owners is being carried
by the public treasury. He declared
that the increased labor cost is being
met by the English people through
taxation. e