Norwich bulletin., 1920-05-22

Washington May 21.-Temporary dis
position OF the $500. 600, ,00O revolving
fund provided by the Ira ansportation Act
Tor relief Of railroads, was made today in
orders issued ny the interstate commerce
commission, which at the same time, took
steps to meet future equipment needs
of The carriers by proposing orsaniza-
tion of an equipment corporation with
capital stock Of $500, ,0o0. 00e.
Recent suggestions Of the Association of
Railway Executives were followed closely
iu spportioning the funds. but the COM
mission confronted the railroads with
ne necessity OF making the largest pos
zibie contributions to meet the sums
advanced by the government.
The commission said it would not fol-
low any arbitrary method of alloc-tting
the money. hut would attempt TO divided
il 50 the whole country would benefit by
improved transportation service.
loan Of at least S125. 00O, 300 out of
30 s10e 0oo 600 revolving fund to en-
abie railroads to purchase equipment re-
quired 70 mee transportation needs of the
uuelic Was approved today by the inter
state commerce commission.
Other recommendations for the dis
hurSement Of the revolving fund provid-
81 iu the transportation act we're as
follows
Temporary reserve for claims and
judgments $40. zoe. 400: appropriation
fo- short line railroads s12.Oeo.oO0 ;
temporary reserve for maturities $50
aae noe. appropriation for additions and
retterments which will promote the move
ment Of cars $4,000. 600.
New equipment required by railroads to
nneet minimum needs is estimated by the
interstate commerce commission at 1000
In
Guiding 20 0eo refrigerator cars. The
commission estimated that equipment al
ready ordered and 10 cost s125.oOo. 900
represented probably less than 25 per
cent. ~ that needed.
1t Is evident" the commissions state
n'rnt said that the equipment required
properly TO meet the transportation neds
nf the pubic cannot be secured unless
thr carriers - sr-ss'vss assume the bur
20 q financing the remaining IS per
rent.
since the distribution OF the revolving
fund by cooperative action with the rail-
r1js has proved inpracticable. the COM
mission said. ALLEGATION OF the s125.000 10
nad for equipment will be made accord
ing 70 the percentage which the standard
return of a company bears 10 the total
tandard return Of al the railroads. In
referring 20 The opposition to this plan by
thr National Association Of Owners OF
rliroad Securities. the commission re-
marked that "few applicants seem to ap-
prrc,.te tho necessity that the carriers
assume a part Of the burden and so use
the amounts advanced ny the government
ss the basis for cir trusts to obtain the
greatest benefit from federal aid.
Hearings 90 consider application fol
loans viii bc held here May %. and the
~F..s
hoiy detailed statements of the trans
.o,l needs which the carriers woui'
De- unahl" 60 meet and what service fo
the ruh',r could not he performed If tn
ioaU asked was not granted. statements
of seru-Iy offered and the earning pow
90 of the applicants.
"ii he ioau ,s desired for other ad
dr sEs and 0ett~rmeuts." the counts
s.ou stid. "it should he clearly state,
wherein The expenditures proposed vii
eVpsdne car movement OF meet th
transportation needs Of the country "
The Sl.. 900 aee for equipment nigh
hezf te disbursed.' the statement said
through a national equipment corpora
iion in WLich the carriers would TAX
sto.k FOR .s per cent OF the cost OF tn
ruGipmeui the United states advancin
ire cash FOR The stock up 10 8t25. eco cot
snd The rcul1 ininE ~ per cent. being fin
anrsi through a car trust. Provision
Eol.d have N he made for adequate pc
tisui or rental with such an arrange
ment
In the event this equipment corpora
tiou cannot he organized, then the fun
should h. distributed 70 those carrier
.n' Individually can meet the govern
rlcnts advances with large proportions
amounts financed by themselves.
d IL
Hnd i.rfterrusnts. unless it he clearl
demonstrated that these improvement
Nin facilitate materially the movemer
II freight 90