Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1920-05-28
u. S. WILL LOAN
ROADS MILLIONS
Sl25, 100000 Available to Buy
New Equipment to End
Freight Congestion.
IN NEED OF 100000 CARS
Interstate Commerce Commission Ap-
proves Loan-Campalgn to Break
Ticup Is Now Well Un-
der Way.

washington, May Z4.-TempOrary
disposition Of the $3OOOO0,OOO 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 fu-
ture equipment needs of the carriers
Dy proposing organization of an equip
ment corporation with a capital stock
Of $5O0,0OO,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-
puuon" to meet the sums advanced
by the government.
The commission said 1t 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 $125,00O.OO0. 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 1t cannot be organized, the com.
mission said the $125, 100000 set aside
for equipment purposes should be dis.
tr1buted to those carriers who fndi.
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 it was entirely feasible.
The commission also practically pu
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, un
less 1t be clearly demonstrated tina
these improvements will facilitate ma
terially the movement Of equipment.
A hearing on the proposed distribu
ton was set for May 20, and ever,
road which applies for a 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 pre-
vided in the transportation act wer
as follows:
Temporary reserve for claims an
judgments, S40,0O0,OOO; appropriate
for short line railroads, S12OOO,OOO
temporary reserve for maturities, $50
, 100000; appropriation for addition
! and betterments which will promot
the movement Of cars, $73,OOO,OOO.
! New equipment required by railroad
!. to meet minimum needs is estimate
by the interstate commerce commi,
sion at 1000 locomotives and 10000
! freight cars, including 10000 refrige
ator cars. The commission estimate
that equipment already ordered an
: to cost 25,O00,OOO.
st is evident" the commission
statement said, "that the equipmel
required properly to meet the transpo
= tation needs of the public cannot |
!, secured unless the carriers themselvt
assume the burden Of financing the r
naming rs per cent"
The campaign to break the freigl
! congestion at the nations traffic gat
= ways was well under way today, I'll
interstate commerce commission,
; the space of few hours, having take
4 three important steps toward that en-