Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1920-05-28
U. S. WILL LOAN
ROADS MILLIONS
S125, 900, 900 Available to Buy
New Equipment to End
Freight Congestion.
IN NEED OF 100000 CARS
Interstate Commerce Commission APP
proves Loan-campaign to Break
Tieup Is Now Well IN
der Way.

Washington, May 24-Temporary
disposition of the $300,OOO,0OO revolv-
Ing fund, provided by the transporta-
ton act for relief of railroads, was
made in orders issued by the inter-
state commerce commission, which, at
the same time, took steps to meet flu
ture equipment needs of the carriers
by proposing organization of an equip.
ment corporation with capital stock
of $5O0.OO0.OOO.
Recent suggestions of the Associa-
ton of Railway Executives were fol-
lowed closely in apportioning the
funds, but the commission confronted
the railroads with the necessity Of
making the largest possible cOntri-
button" to meet the sums advanced
by the government.
The commission said it would not
follow any arbitrary method Of allo-
eating the money, but would attempt
to divide it so the whole country
would benefit by improved transpor-
tation service
AS to the equipment trust, the COM
mission proposed that the roads should
take stock in it equaling 25 per cent
of the cost of the equipment, with
money advanced by the government
up to 125,000OOO. The remaining rs
per cent would be financed through
trusts placed on equipment to be built.
Some doubt was expressed as to the
ability to complete the formation of
such an organization. In the event
that it cannot be organized, the COM
mission said the $125. 100000 set aside
for equipment purposes should be dis
tributed to those carriers who indi-
vidually "can meet the governments
advance with large proportional
amounts financed by themselves"
While this required advance by the
railroads themselves was declared by
owners of railroad securities to be too
much of strain on railroad credit.
many of the railroad executives be-
lieved 1t was entirely feasible.
The commission also practically put
ban on extensions of lines and bet
terments of trackage now in existence.
1t said that loans would not be grant
ed for additions and bettermentS, I'M
less it be clearly demonstrated that
these improvements will facilitate ma
terially the movement of equipment"
A hearing on the proposed distribu-
ton was set for May 20, and every
road which applies for loan will
have to show its entire financial OBJ
legations, together with forthcoming
requirements which will force expend-
iture of funds
Other recommendations for the dis
bursement of the revolving fund pro-
vided in the transportation act were
as follows:
Temporary reserve for claims and
judgments, $40,0O0,0OO; appropriation
fSr short line railroads. $12,O0O,O 900
temporary reserve for maturities, $50
100000; appropriation for additions
and betterments which will promote
the movement of cars $73,00O.OOO
New equipment required by railroads
to meet minimum needs is estimated
by the interstate commerce commits
sion at 1000 locomotives and 100000
freight cars. including 10000 refriger-
ator cars. The commission estimated
that equipment already ordered and
to cost $125,OOO,O0O.
ut is evident" the commissions
statement said. that the equipment
required properly to meet the transport
tation needs of the public cannot be
secured unless the carriers themselves
assume the burden of financing the re-
naming rs per cent"
The campaign to break. the freight
congestion at the nations traffic, gate
ways was well under way today. the
interstate commerce commission, in
the space of few hours, having taken
three important steps toward that end,