The weekly Iberian. (New Iberia, La.) 1894-1946, 1921-07-30
RAILWAYS TO GET
HUGE SUM SOON
Acceptance of Harding
Plan by Roads Assures
Action.

Washington.-Official announcement
has been made that the railroads had
acceded to the request of the admins
| tration that they waive their demands
for compensation for alleged ineffic-
1ency OF labor during the period Of fed
eral operation of the railroads will
make possible speedy settlement and
the payment of between $500 .0OO. 900
and $500,000,0O0 in cash to the car
| riers
Enabling legislation to carry out the
program OF the administration formu-
lated in conferences between represen-
tatlves of the government and the rail.
roads Will be recommended by Presi-
dent Harding in a communication to
| congress next Tuesday. Bills are ex-
pected to be offered in both branches
OF congress designed to give legal sane
ton to the plan decided upon A direct
appropriation will not be requested, It
is understood, but authority will be
asked whereby the government will
raise the funds necessary to effect the
settlements with the railroads.
To Fund Railway Indebtedness.
Although officials declined to discuss
the nature of the recommendation
which will be submitted to congress.
the plan that has been under consid-
GRAFTON contemplates the use of the
war finance corporation as an agency
to advance funds to the railroad ad-
ministration on securities given to
the government by the railroads.
The government, it is understood,
will fund the Indebtedness Of the rail-
roads to 1t because of capital expendi-
lures made during federal control
This Indebtedness Is estimated rough
ly at between $700,000,O00 and $780,
900 900.
Director General Davis of the rail.
road administration recently estimated
that the claims of the railroads against
the government would aggregate ap-
proximately $3.50, 100000. The gov
eminent has settled with 40 or SO
roads on a basis of about 40 per cent
of the face of these claims. If the re-
naming claims are settled on the basis
Of those settled to date, roughly the
railroads will get around half-billion
dollars.
$25, O00, 900 on Guaranty.
That will be for the period of fed
eral control. The government still
owes the railroads about $250,000,00
on the guaranty for the six months af-
ter federal operation.
The government has proceeded upon
the assumption, however, that to facili-
tate the settlement of the claims the
railroads should not press for compen-
sation for alleged inefficiency of labor
during the federal control period, be-
cause to determine allowances for in
efficiency of labor would be almost
an impossible task. 1t was the belief
of government officials that the gov
eminent could not go into fine analy-
sis as to the inefficiency Of labor and
that adherence to that claim by the
railroads would simply defer final set
Elements for an indefinite period.
There has never been dispute as
to large sums that are due the rail-
roads. The only hitch was the rail-
roads demands for allowances for al
legged inefficiency Of labor. For ex-
ample, carrier might make total
claim of $10,000,000 of which $4,000
900 was based on the ground that the
labor expended in maintenance was
not efficient as it was in the period
preceding federal operation.