Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-07-27

ment for betterments and new equip
ment added during the period of
government operation might be re-
funded. 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
return of the railroads to their own
ers. 1t has been limited, however, to
such cases as those in which final
settlements with the railway admin
istration have been effected. The pro-
cess is admittedly too slow to meet
the difficult situation which the own
ers of the railroads have been fac
ing, and | believe it essential to re-
store railway activities and essential
to the country's good fortune to has
ten both funding and settlement.
quite apart from the large sums
owing TO the government. which we
are morally and legally bound to fund,
the government admittedly owes the
railway companies large sums on va
rious accounts such as compensation,
depreciation and maintenance.
The way now would seem to be
clear to very early adjustment and
relief, except for the fact that the
railway administration, though pos
sessing assets. does not command the
funds necessary to meet what are its
admitted obligations.
There is no thought to ask Con-
gress for additional funds. Perhaps
five hundred million dollars will be
necessary. The railroad administra-
ton, or will have in the progress of
funding. ample securities to meet all
requirements if Congress only will
grant the authority to negotiate these
securities and provide the agency for
their negotiation.
With this end in view you are ask
ed to extend the authority of the war
finance corporation so that it may
purchase these railway funding Sc
curities accepted by the director gen.
eral of railroads. No added expense.
no added investment is required on
the part of the government. there is
no added liability, no added tax bur-
den.S 1t is merely the grant of auth
oritN necessary TO enable a most use
full and efficient government agency
T." use its available funds to purchase
securities for which Congress already
has authorized the issue, and turn
them into the channels of finance
ready to float them.
Il can readily believe that so sim
pie remedy will have your prompt
sanction The question of our obliga
ton cannot be raised, the wisdom Of
aifording early relief is not to be
doubted. and the avoidance of added
appropriation or liability will appeal
TO Congress and the public alike.
Pending proposals for relief and
their discussion have already brought
to the attention Of Congress the very
promising possibilities of broadening
the powers of the war finance corpor-
alton for the further relief of agri
culture and livestock production
This corporation has proven itself SO
helpful in the relief thus far under
taken that | cannot help but believe
that its broadened powers, as have
'1NNii P'Cb'0eh' 70 meet agricultural
: needs vii enable it wholly TO NEE,
the nation wide emergency. This is
an impelling moral obligation to Am
ercan farming in all it's larger as.
poets. and it will be most gratifying
10 nave YOUR early sanction.
In the case of the railroads there
Is & moral and a contractual obliga
ton and Your favorable action is nc
less urgent and will no less appeal 10
pubic approval. Railway solvency
ana efficiency are essential to GU,
healthful, Industrial commercial and
agricultural life. Everything hinges
on transportation.
After necessary and drastic cur
tallments. after narrowing efforts IN
meeting their their financial needs
railways need only this financial aid
which the fulfillment Of our obliga
lions will bestow to inaugurate thei,
far-reaching revival. It's effects will
be felt in various industries and will
hanish to large degree the depres.
sion which, though inevitable in wars
aftermath. we are all so anxious to
sec ended"
With his message the President
sent TO Congress a large amount OF
uata from Director General Davis Of
the railroad administration SHOWING
the progress of JiuuiJatiop ea e. =