Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1921-02-03
RAILROAD CLAIMS
'APPALL C0NCRESSI
Demand Huge Sum For SID
Months Deficit.
ASK FOR s6o,oO0,ooO
This Imposing Loss Piled Up In
Season When Operation Cost Was
Lowest.

Washington. The government
seems destined 80 pay stagger-
Ing sum TO the railroads Of the country
before 1t dientangles itself from its
wartime wards.
Economists In congress who voted
for the transportation act last spring.
which sought TO make adequate pro-
vision for the roads by a government
guarantee for the first Ak months, are,
gasping for breath after digesting tho,
carriers claim that the governments
owes them $600000,000 10 cover tho
deficit for the first six months under
private control This Is almost cQnalI
to the entire deficit for the whole peri
cd OF government operation, lasting
more than two years. One phase OF the
matter which has elected comment, In
that the railroads piled up this i'm
posing deficit during the spring and
summer months, when operating en-
penses are lowest, and when the extra
ordinary conditions that hamperetK
operations during and Immediately f.
lowing the war had disappeared.
During the six months period, the
Treasury advanced $3.50, 491 ,874 to ms
railroads on account, presumably ~
meet fixed charges and operating en-
penses. The present agitation In con-
gress over the matter arises from tina
fact that legislation II now being
sought--and has been fav)rably recon-
mended In the house--to authorize adj
ditional payments to the roads befoyol
the actual amounts due them Is legally
fixed
Some members are opposing the Ell
fort to amend the transportation act
five months after the increased rates.
went into effect on August rs last, I'M
order to permit the carriers to 20 into
an already depleted public treasury
and draw this money ahead Of times
contemplated in the original net ~,
Secretary Of the Treasury HoustonI
Ia opposed to this amendment In In!
present form, as he thinks Il would
open the way for fraud II the treas
ury Is directed to advance millions ~
dollars before the governments respon~
sibility iB definitely fixed ~
Secretary Houston has submitted To.
congress statement OF advances al
ready made to individual railroadsa
under the transportation act covering
Partial payments Of the governments
guaranty for the period Of March l..
1920, to September I, 1920. Out OF the
aggregate of $3.50, 431 ,S74, the tabula-
ton shows that the Pennsylvania rail-
road alone drew s53,000,000 on account.
The law returning the carriers con-
templated that such advances should
be made during the guaranty period
only to enable The roads ito meet fixed
charges and operating expenses" 1t is
alleged that the Pennsylvania and
some Of the other systems which bene-
fitted by the guaranty gratuity paid
their dividends as usual during that
time, and such payments are not con
sidered fixed charges or operating ex-
penses.
In addition to more than quarter
of a billion dollars advanced on this
account, the $300,000,000 revolving
fund authorized by congress in the
transportation act to be advanced to
the roads at 6 per cent for purchase Of
equipment, etc, is practically exhaust
ed
Millions Of dollars owed to the gov
eminent for capital improvements dur
ing the federal control period are still
outstanding On top Of all this, the
government had advanced millions to
the roads on equipment trust certifi-
Gates, this paper representing obliga-
tions of a subsidiary corporation or
gained by the carriers to buy equip
ment.