The daily banner. (Cambridge, Md.) 1897-2008, 1921-07-27
AIDFORRAILROADS
URGED BY HARDING
Asks Congress For Power TO
Raise Money,
S5OO,OOO,OOO IS NEEDED
President Declares Relief Can Be Civ
en- Carriers Without New Burden of
Taxation.

President Declares Relief Can Be Civ
{ en- Carriers Without New Burden of
Taxation.
Harding sent a message to congress
asking legislation authorizing the war
finance corporation to handle funding
Of railroad Indebtedness and to in
crease credit for financing agricultural
exports.
,, That there were moral" obligations
upon the government to aid in both
respects was stated by the president,
wh~ commended the war finance cor
poration as an agency of great value
i'll restoring economic conditions
| Prompt action was requested. but the
president did not ask that both fea-
lures he contained in one bill
In accordance with the presidents
idea. Republican leaders adopted the
, plan of dealing with the railroad and
agricultural questions in separate
measures, and a bill dealing With the
latter was introduced in the senate
The president in his message propos-
| cd that the war finance corporation he
empowered to purchase securities.
probably up to $5000O0,0O0, now in
| tn" hands of the railroad adminiStra-
ton :" that the proceeds may be used
for settlements with the railroads.
This. The president told congress,
would open the WAY To early adjust
mrnt and relief of the railroad prob
lem. There was no thought. he said,
of asking congress for additional
money.
| Railway claims, based on the lin
efficiency of labor" during the war, the
president said. were to be waived for
the present to hasten settlement with
! out surrender of any rights in court.
, Although the railways owe the govern
mrnt large sums, the president said,
, til" government also owed the rail
roads large sums on various accounts.
So added expense" Siad the preSi-
dent explaining his request, mo added
| investment is required on he part of
: the government: there is no added liza
I hlity, no added tax burden.
1t is merely the grant of author
! lily necessary To enable Il most useful
| and efficient government agency to use
| its available funds tn purchase secur
: lilies for which congress already has
authorized the issue. and turn them
| into channels of finance ready to float
! them.
Tine contract covering operation
provided that the railways should be
| returned to their owners in as good
| condition as when taken over by the
| government, and the transportation
act recognizing thar bettermentS and
additions belong to capital account,
| provided that such sums as the rail
way companies owed the government
| for bettermentS and new equipment
; added during the period of government
operation, might be refunded.
+ There has been at no time any
| question about the justice of funding
! such Indebtedness To the government
! Indeed, it has been in progress to a
measurable degree ever since the re-
| turn OF the railroads To their owners.
| st has been limited, however, to
I such cases as those in which final set
| Elements with the railway aGniniStra-
ton have been effected. The process
| is admittedly too slOWsto meet the diff
! fcult situation which the owners of
the railroads have been facing, and
, believe it essential to restore railway
activities and essential to the coun-
| try'S good fortunes to hasten both
! funding and settlement.
"Quite apart from the large sums
owing 10 the government which we
are morally and legally bound to fund.-
the government admittedly owes the
railway companies large umS on Vart-
| Gus accounts, such as compensation,
depreciation and maintenance.
The cay now would seem to be
| clear to very early adjustment and
relief, except for the fact that the
railway administration. though pos
SesSin@ assets. does not command the
funds necessary to meet what will be
its admitted obligations.
There is no thought to ask con
greSs for additional funds Perhaps
| 500, 100000 will he necessary The
| IdtlIpdh dtllIllulSbl hlIoIl Has, vi W III
have in the progress of funding, am
pie securities to meet all requirements
If congress only will grant the author
| ity to negotiate these securities and
provide the agency for their negota
ton.
with this end i'll view you are ask
ed to extend the authority of the war
finance corporation so that it may
purchase these railway funding Securi-
ties accepted by the director general
of railroads.
1T is merely the grant of authority
necessary to enable Il most useful and
efficient government agency to use its
available funds to purchase securities
for which congress already has author
, lied the issue. and turn them into the
channels of finance ready to float them.
In the ease of the railroads there
is n moral and ii c0ntractural Oblig;I-
, ton. anG your favorable action is no
less urgent, and will not less appeal,
to public approval. Railway solvency
and efficiency are essential to our
hpalthful industrial, commercial ana
! agricultural life. Everything hinges
| On transportation.