The Washington times., 1920-10-08
u. S. HOLDS Up
ADVANCES
Systems Cannot Draw Federal
Guarantees In InstalIments,
Treasury Rules.
BY W. H. ATKINS.
News Service.


The railroad systems Of the coun-
try, already psrplsxsd to finance
their needs adequately. encounter an
impediment in the form Of de-
cisiop Of the Treasury that pay
ments to the roads under the guar
anty clause of the transportation act
can not be made piece-meal. but
only after the full amount Of guar
snty has been ascertsined and cer-
tilted by the Interstate Commerce
Commission.
P0sTPONEs PAYMENTS.
The effect Of the decision will be
TO postpone payments to the roads
OF the full amount OF guaranty 70
which they are entitled until the
Interstate Commerce Commission has
completed the process of adjudication.
and certified to the Secretary OF the
Treasury the full and hnai amount
of guaranty. This will require many
months.
Prior to September I. under the
provisions OF the act. approximately
$3.50. .OOO. 900 was advanced to the rail-
TOhub IN pATtidt pay"Sus1 "" VIZ
guaranty to enable them to meet hxed
charges and other urgent needs. Con-
troller Warwick advised Secretary
Houston to decline to issue warrants
covering further payments unless the
entire claims are certified by the com
mission.
The controller said that il any car
rier neglected. during the guaranty
period. to avail Itself Of the provision
Of the law or to have Its records ana
evidence In proper shape for tho pre-
sentation of its entire claim. within
a reasonable period after the termi-
responsibility for the delay In re-
ceiving final payment under the guar
anty must rest with the carrier and
not the government. 80
The issue arose when the Interstate
Commerce Commission transmitted TO
the secretary Of the Treasury certin-
Gates for the payment OF $oO0.oOo 70
the Grand Trunk Western Railroad.
and $25O.O to the Detroit, Grand
Haven and Milwaukee Railroad. those
sums representing partial payments
Of the guaranty.
REFERRED TO WARWICK.
Secretary Houston referred the
question to Comptroller Warwick, for
opinion as to the legality OF authorlz-
ing the issuance of treasury warrants
covering the amounts stated, In, view
Of the fact that the roads asked for
the advances after the guaranty
period ended.
'The direction Of the statute" the
Comptroller held, ais that the Inter-
state Commerce Commission shall. as
soon as practicable after the expira-
| tion of the guaranty period. ascertain
I and certify the several amounts neces-
sary to make good the guaranty to
each carrier, and that the Secretary
| of the Treasury shall draw warrants
for the amounts shown in such cer-
| tificates.
.Tt appears to be clear that the act
| contemplates and authorizes only
one payment in such case. Having
| provided for the fixed charges and
operating expenses during the period
of six months after termination OF
Federal control. and by authorizing
increased rates. enabled the carriers
to make provision for caring for
/ financial obligations, after the six
months guaranty period, ! think IL is
but reasonable to assume that Con-
gress intended that the payments
authorized should be made only after
carrier had submitted its entire
claim. and the commission had ascer-
/ tanned the entire amount due"