The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-26
NO TAXATION is
LcOntInued frOm Paee One.l

tContinued from Page Onel
,Eregate amount claimed being $685.
tO323S5. The mileage of the roads
having filed claims aggregates 49,
The amount of claims settled by the
fdirector general up to and including
July Is, 1921, aggregated $225, $685.
VISA. These settlements represent
some 43 per cent in number of the
iclaims actually filed. The total
amount paid in settlement was $685.
141,227.
The largest single disputed item in
final settlement is the claim for I'M
ider-maintenance of way, structures
and equipment. The under-mainte-
nance claims represent more than 50
per cent of the total amount of
claims filed. Included in these claims
for under maintenance is the much
discussed claim variously described as
sinefficiency of labor"
Hugo Sum Expended.
1 Claims for inefficiency OF labor
ihave not been allowed by the railroad
administration, not only as contended
by the railroad administration be-
cause such claims are not contem-
PLATED by the standard contract, but
fhey are too highly indefinite.
Z During the period of federal control
there was expended by the railroad
administration on behalf of the car
Tiers some $1,144. 100000 in addition
and betterments, properly chargeable
TO capital account. OF this sum, in
purchase of additional equipment,
consisting of 100000 box cars and
1000 locomotives and the expenditure
eer this equipment has been taken
care of in equipment trust certificates
now held by the railroad administra-
tion.
This leaves about $763,OOO,OoO of
additions and betterments, which, II
not funded, must be deducted from
the amount due from the railroad ad-
7ninistration to the carriers in final
settlement. An extension of the time
In which these additions and better
qnents obligations could be paid to
such carriers receiving this extension
10 expend this amount of money in
the much needed rehabilitation of
their cars and Locomotives.
Deferred Maintenance Is $500, 900, 900.
The amount of deferred mainte-
nance at the present time has been
eonservatively estimated at $400.000,-
300. of which $200,0O0,000 represents
maintenance of way and 5000, 900, 900
maintenance of equipment That is.
these are the amounts which should
be expended on the railway properties
TO bring them up from their present
physical condition to normal.
Delayed payments of the current
liabilities of the railroads representing
materials used in operation have been
eonservatively estimated at not less
than $780, 100000. BY the terms of
section of the federal control act.
tho president was authorized to incur,
pm behalf of the carriers, Indebtedness
Tor additions and betterments.
AS a result of the exercise of this
power. a large amount of Indebtedness
was created by the director general
and imposed upon these carriers for
additions and betterments, some of It
Assented to by them and some of It
not concurred in.
What Is Just?
The question arises what Is euui-
table and just to do now in regard to
the adjustment of this Indebtedness
The carriers insist that it should be
funded by the government for a
term of at least ten years.
If the government refuses to re-
fund this Indebtedness which it
Created for the carriers, and If, in
addition to their large capital re-
duirements for other purposes, It is
necessary for them to borrow also the
amount they owe the government for
additions and betterments. their prob
lem and the public's problem in re-
Gpect to transportation will be enor-
xnously embarrassed.
The Indebtedness of the carrier 10
the government for additions and bet
terments incurred ought not to be al
lowed to constitute an additional COM
pl.cation and embarrassment in this
situation. To avoid this the govern
ment ought not to hesitate to carry
this indebtedness for ten years as pro-
vided for in the transportation act.