The Butler weekly times and the Bates County record. (Butler, Mo.) 1918-1950, 1921-09-08
SM'ADOO SAYS HARDING IS
WRONG
Denies U. S. is Morally Bound t.
Fund Debt Of $763,ooo,ooo.

fSs@t ~ ~sUs " ~/0jSoSS'o~~'
W ashington.-President Harding
was Clearly mistaken in telling
Econgress that the government
was morally, and legally bound" to
Ifind the $763, ooo, 900 debt which the
Irsilroads owe the United States for
additions and betterments, according
70 the expressed opinion of William,
6. McAdoo, former secretary of the
treasury and director of the railroad
administration.
Stripped of confusing nonessen-
tails" McAdoo declared last week
in~a letter to Senator Stanley, Dem
Oerat of Kentucky, a member of the
senate interstate commerce commit
tee, what is proposed is that the
government shall wait 10 years for
sos ,ooo, 900 the railroads owe it for
betterments and Improvements and
pay Immediately $500, 100000 to the
railroads on account OF claims for al
legged undermaintenance. taking Sc
curities which in many instances may
not be adequate to protect the gov
eminent against loss.
1T is not question of legal or
moral obligation, but question OF
policy
McAdoo's criticism OF the Harding
scheme to help the railroads over the
rocks was placed in the senate record
by Senator Stanley after the former
head of tic railroad administration
had been refused hearing before the
interstate commerce committee previ-
GUS to the reporting Of the admins
tration enabling bill to the senate.
McAdoo admitted the Escl-Cum-
Minis act conferred upon the presi-
dent power to determine, within GER
tain limitations, how much of the
debt the United States owes the rail-
roads may be set Off against the
debt the railroads owe the United
States, but held that the act docs not
contemplate that none OF the debt of
the United States will be set Off
"On the contrary" Mc.Adoo went
on, "tle act assumes that it will be,
because, in express terms, it provides
for funding only the remaining in
debtedness of the carrier to the Unit
ed States
1T is Individually clear that even
under the law and tie contract be-
tween the parties the United States
is not morally and legally bound to
fund as stated by the president in
his letter, the $763,ooo.ooo debt the
railroads owe the treasury for 'addi-
tons and betterments.' The presi-
dent must have been misled into
making such a statement.
McAdoo suggested that settlements |
with the railroads be affected by
unding for 10 years the difference
between the amount which the rail-
oads owe the government and which
he government owes the railroads.
This difference is estimated at $685.
100, 900.
But the president propose, d new
Ian McAdoo continued. namely,
o defer for 10 years at per cent in
crest the entire S763,ooo,ooo due by
he carrier to the United States and
o pay the carriers i'll cash S5oo,ooo,-
90 for alleged undermaintenance
laims. The president assures lis
hat this involved, % mo added in
estmcnt;. "a no added liability;
81 no added tax burden"
There is an added investment Of
axpayers' money amounting to $780,
10000 because instead of offsetting
# canceling $soo.Ooo,Ooo with an
quail amount of the debt the rail
Dads owe the United States, the
reasury will have to pay the rail-
Dads $500, o0O. 900 of new money.
There is an added liability OF
soc, 100000 because the treasury
lust continue to lend that sum to
he railroads, some with good and
ONE with poor credit and a large
oss may finally result. Thus. if the
United States now cancels $500, ooo,-
DO with part of what the railroads
we it. at least TO the extent OF
500. o00,ooo. the chance OF loss or
ability will be removed. |,
There will be an added tax bur-
en- uplees the advance and all in
rest thereon are finally repaid by
lie railroads. becaise there is NO way
IT the unifef States to get $780,
4. ooo ft5e the faslroadS except byI'