Every evening, Wilmington daily commercial., 1921-06-25
ROADS, CLAIMS ACTION
DEMANDED BY HARDING
Insists on Investment OF Capt.
tai at Home to End Busi-
ness Depression.

|. Washington, June ah.---Adiustment
of the enormous claims OF the rail-
roads against tho Government, aris-
Ing out of Federal control, and the
use OF the bulk OF American capital
fer domestic development instead Of
placing it at the disposal of Europe,
are two decisive moves which II Is
possible for the Administration %
mike In the direction to better bust
ness in this country. a score of lead-
ing Western and Southern bankers
told the President Thursday.
The important facts regarding this
second conference between the presi-
dent and leading flnanciers did not
come TO light until late this afternoon
when Mr. Harding received 100 or
more Washington correspondents.
Then he let II he known what had
taken place last night and In broad
way how he had been impressed with
the views spread before him.
In the first place, the President real
ised at once the Importance of arriv-
ing at some settlement with the rail
roads at the earlist practicable mo-
ment, regarding the accumulated
claims. as a means OF putting the
transportation companies ON their feet
and OF paving the way FOR revival
of business. The bankers insisted
that such a settlement was imperative.
Acting upon that theory, Mr.. Hard
ing yesterday summoned into confer
ence the Secretary of Commerce. the
Chairman OF The Interstate Commerce
Commission and the Director General
of Railroads, and, laying his own
views before these officials, insisted
that the claims Of the railroads be
settled with the utmost dispatch; that
partial claims he adjusted, u need be,
but in any event that haste be made.
in the discussion that took place to-
day ii VAS brought out II the pending
claims should be settled on the basis
OF the railroad theory the Government
would be compelled 10 pay the carriers
$4,000. 600 ,0oo III they are adjusted on
the Governments theory of damages
sustained. the amount TO be paid would
he approximately s1.2bo, ,00o, coo or half
what the railroads insist is owing
them.
The hest Judgment of those who
have studied the claims problem Is
that the Government and the carriers
eventually will compromise by split
ting the difference. that is, that the
Government will find IL necessary to
pay the roads approximately 81 soo.-
GOO 600 more TO cover undermainten.
ance. damage 70 rolling stock, etc.
These cIairts in no way involve the
sums paid 70 the railroads Under
either the original guaranty section
OF the law or under the second guar
snty covering Elk months period fol-
lowing the delivery or the railroads to
their owners.
1t was apparent TO those in close
touch with the railroad claim situa.
ton yesterday that the President viii
find il necessary. before the end Of
the road is reached, 10 60 TO Congress
for something like 81 loco. .00o,0 in
order 10 meet what he viii regard aa
the just claims of the railroads. This
will interfere seriously with the econ>
onny program and the plan 10 reduce
the volume Of taxation.
BE that as ii may, the President
seemed 10 be determined to close up
the railroad question as soon as he
may possibly do so. lie has become
convinced that in doing this he will
be able TO contribute heavily toward a
restoration Of prosperous conditions in
the business life OF the nation.
Also the President is more than
ever convinced, following his confer
ence with the Western bankers, that il
would be a mistake to allow Europe
TO make any wholesale drains upon
the capital Of the United States at this
time. George b. Reynolds, Of Chi
cago, one OF the leading bankers OF
the country, insisted most emphaticsl-
ly that # was the duty of bankers
and capitalists here TO so TO the as
sistance OF American industry before
encouraging Europe 70 pile higher and
higher the debt OF that continent 10
America