Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-11-30
ROADS TAKE LEGAL
STEPS TO ENFORCE
GUARANTY CLAIMS
Enter Mandamus Proceed
ings Against U. S. Treas
ury for S400, 900, 600.
COURT ACTION RESULT OF
PARTIAL PAYMENT RULING
Railways Not Permitted to Re.
ceive Government Funds, Ex-
ccpt on Final Settlement.
iBy Associated press.l

wASHINGTON. Sov 29.-Man-
damus proceedings against the Sec
rctary OF the Treasury were insti-
tutcd today In the District of Colum-
bia Supreme Court b. the Grand
Trunk Western Railway Company to
require payment OF an Interstate
Commerce Commission certificate
calling for 100000 as due the road
under the guaranty provisions Of the
transportation act.
Justice Mccoy issued an order re-
,urnab!e December I, requiring Sec
retary H0usto; 20 show cause why
the writ should not be granted
While the Grand Trunk Company is
the only petitioner In the case. an
prox.nately s109. 600. 900 claimed Dy
the railroads is involved in the l!ti-
cation. according to statement is
sued tonight by the Association OF
Railway Executives.
Partial Payments Held Unlawful.
This proceeding grew GU, OF the
opinion rendered October By the
Comptroller OF the Treasury" the
statement said. based upon certain
certificates presented by the inter
state Commerce Commission to the
Treasury Department in favor of the
Grand Trunk Western Railway Conn
pany and the Detroit. Grand Haven
and Milwaukee Railroad. IN which
opinion the Comptroller of the Treas
ury held that partial payments could
not be made by the Secretary Of the
Treasury to carrier in advance OF
final settlement.
The comptroller took the position
tina, the Interstate Commerce Com
mission was empowered to issue only
one certiacate toNcach carrier. which
certificate must be for the full
amount OF the nnai settlement.
while in this proceeding the
Grand Trunk Railway Company is
the only petitioner yet the result Of
the decision rendered In this ease
Will involve the payment OF approx
!na:ely sa0o.0o0.ooo now due tc rail-
roads af this country under the
guaranty provisions OF the transpor-
talon act.
Proceeding In Test.
This proceeding IS a test case de-
signed and necessary TO settle wha,
the law is in respect to the author
ity and obligation Of the Treasury
Department TO mako partial pay
ments under the guaranty. when
amounts are certified by the Inter
state Commerce C0mmissio as cer-
tainly and in all event due. without
waiting. before making payment, for
the result of 4 final accounting, which
cannot be accomplished for very
considerable time"
Secretary Houston said today that
no course was left the Treasury but
10 follow the decision OF the com
troi!er unless contrary decision
should be rendered by the courts. The
comptroller's rulings. he said. are
binding on the Treasury. and at pres
ent there is 40 alternative.
The AttorneyGencrai will have
charge OF the governments side of the
case in the mandamus proceedings.
Secretary Houston said, but the legal
experts of the Treasury will act in
conjunction with the Department Of
Justice.
Thorn Preparing Papers.
II became known today that the
railroads case is being prepared by
Alfred T.. Thorn, general counsel for
the Association OF Railway Execu-
tives. and former Justice Cov:ngton.
OF the District OF Columbia Supreme
Court.
Many millions OF dollars OF funds
due the carriers are held up, and Of
ncials of the road declare that the
money is urgently needed for equip
ment and bettermcnts necessary to
improve the service. They have
stated that an effort would be made
TO have Congress at the forthcom-
ing session amend the transportation
act so that money could be paid
over