Evening star., 1920-02-21
Chairman Esch of House
Committee Reveals Admin
iStration Estimates.
WAR LOSS is HELD
TO BE WORTH PRICE
81, ,250,0O0,000 Spent in Form OF
Improvements Will Be Repaid
by Roads, Is Claim.

place the net cost to the governme
OF federal control of the railroads &;
1886, 6,o00, 900, Chairman Esch of the
terstate commerce committee told I.
House today in opening debate on =.
conference report on the comprom
railroad bill
The total amount which the gn.
ernment will have to make I'd
what may be considered it's short
is $636,000, 600" declared Mr.. E.s.
basing his statement on a staten,
given him by Swager Sherley.t
rector of finance Of the Railroad
ministration. This $685. 000,0 900 y
have to be charged off as a war 10
and one may say it was expens,
but it was worth the price. WI
out the railroads, transportat
would have failed to supply
troops overseas. This amount is
we paid for the railroads in winE
the war"
Investments to he Repaid.
Total appropriations of apprs
mately $1,000. 100000. includine tn.
already made. Mr.. Esch said. W,
the experience of federal contro
imately s1.25o. .0O0.o were 'in,e
ments' in the form of improvement,
made for the roads, which are to
paid for by them.
Less than 100 members were in tn
House when 1t met for the final hg.
on the compromise bill, but In tn
galleries there was a large bod
of labor agents and others. Will
the compromise bill was being reat~
to the House. its membership gathereG
on the floor and the demand for y
quorum by Representative Gard. dem
ocrat Ohio, was followed by the an
nouncement of Speaker Gillett tina
221 members were present, when Nj
Esch began the opening explanation
of the bill.
The final appropriation for wind
ling up the affairs of the Railroad Ad
1iinistration. Mr.. Esch said. would be
made by Director General Hines in
April, but as a part payment Of the
1896 900. goo" he urged that the House
accept a provision of the compromise
bill giving $2O0.000.O00 for the gov
, ernment to meet current expenses'
soon after the roads are returned
, such a plan. he said. would leave
1886. as the nnal- amount to be
asked by Mr.. Hines.
Stacking Is Denied.
; Defending the work Of Congress in
framing the railroad legislation. Mr.
Esch declared there had been no
Stacking" adding that the conference
compromise came before the House
today practically seven months after
the House interstate commerce COM
mittee began hearings on the reor-
ganization proposals The compromise
bill, he asserted, was the original
House bill, except "one substantive
proposition" by which a rate basis IL
fixed with earnings in excess OF 8 per
cent on railroad valuation being
divided between the earning carrier
and the government, for the latter to
use for weak roads.
Mr.. Esch also declared that the COM
promise bill seeks to perpetuate the
h0
lines" on the Warrior and Mississippi
rivers and. the Erie canal, and con-
tains provisions designed to insure
the success Of this new venture"
Conditions Prior to U. 9. Csnfrol.
Referring to the financial straits
in which the carriers would dud
themselves at the end Of federal con-
troll. MIR. Esch said that prior to gov-
ernment operation only so per cent Of
the roads earned dividends and paid
interest
During federal control l0s Of the
175 class l roads did not earn in
terest," he added. I'm 1916 the roads
lacked sixty million dollars of pay-.
ing interest on their Indebtedness.
country would go into the hands OF
receivers in three months without
1.-THE government guarantee" Mr. Esch
declared. And 1 want to warn You
that receiverships for railroads means
=
prises and other business.
short Lines Well Cared Fer.
The short lines. he said. had been,
fairly and generously dealt with ''as
was proper" adding that IL they SUI
fered the people they served would
suffer- as would also the trunk lines.
which they fed.
The details Of the three-hundree-.
million dollar revolving fund was ex-.
planned and the chairman brought q;
smile from the full membership of the
House that heard him by announcing
that the provisions for free passes for
railroad lawyers. doctors and others
stood as heretofore. -
II expect this one question has given
members of Congress more actual
Iconcern than the most Important provie-
ions of the conference report" he de-
clared.
Return Guarantee Denied.
Mr.. Esch denied that the govern
ment, under the compromise bill.
guaranteed a return OF Y per cent
of railroad investment.
"It is up to the railroads to earn
by efficiency" he declared.
! The division of earnings over o.
per cent, he continued, would. "when
times become normal" create a sum
for loans or leasing of equipment to
the carriers.
! "The government is losing nothing.
he added in this connection.
| Commerce is stimulated. This plan
is the best practical solution Tor
most difficult problem" e
| Referring briefly to the labor pro-
visions of the compromise bill, Mr..
Esch declared that the measure had
nothing about compulsory putting
| into effect of the decisions" or the
labor boards. but that 'it relies or
public opinion. which is greater tnah
l laO al dQcraQRD