Evening journal., 1921-07-23
SOON SETTLE
ROAD CLAIMS
Harding to Tell Congress
How 1t Will Be Done
Without Aid
is VICTORY FOR
THE GOVERNMENT

WASHINGTON, July 23. Presi-
dent Harding will submit to Con-
gress next Tuesday the 'administra-
ton plan for funding the debts of
the railroads to the government and
meeting without additional appro-
priatons the claims of the roads
growing out of federal control
An understanding has been reach
ed between the roads and the adj
ministration it was learned yesterday,
TO facilitate speedy settlementof the
claims Of the carriers without any
new arrangement Of notifications of
the wartime contracts with the gov
ernment. Authority to fund the
debts of the roads, il was explained,
is given the President by the trans
portation act, but it was deemed ad-
visable to acquaint Congress with
the methods under consideration.
Use of the War Finance Corpora
ton as the agency effecting, through
the railroad administration, the set
tlement of the governments finan-
cial relations, has been suggested as
well as other means, but additional
authority from Congress would be
required to permit the corporation
to take part in the contemplated
transactions.
After three weeks of negotiations
the basis on which the railroads
claims would be quickly met was
said to have been reached through
the roads acceding to the admins
tration's request to waive claims for
'inefiiciency of labor" in work done
on the lines by the government be-
fore returning them to private con-
troll. In waving such claims, how
ever, it was declared the right Of any
OF the roads to sue on them in the
courts would not be effected in the
event Of a failure OF settlement.
The administration position dur
ing the negotiations with the car
riers was declared to have been that
the roads ought to facilitate settle
ment without considering what the
government regarded as extrava- .
CANT claims for efficiency of labor.
only these claims, it was asserted,
we're in dispute, and so far the rail-
road administration has refused.
with the approval Of the President,
to make any adjustments on that
basis.
On the other hand, the admins
tration felt, it was asserted that the
government had not been fair to
the railroads and should give them
what was rightfully theirs. At the
same time it was desirable to facili-
tate settlement of the railroad prob
lem which would enable the closing
/ Of the railroad administration, an
expensive government agency.
/ The administration and the rail-
roads it was maintained, had sought
a frank understanding which. by
laying aside elaborate claims for in.
efficiency of labor, would speed NJ
the settlement desired. While al
railroads, particularly the short lines
were not represented in the Associa
ton Of RAILWAY Executives, Will
whom negotiations we're conducted
it was believed the understandin,
reached would meet with the ap
proval OF all the carriers.
Debts of the roads TO the gov
| ernment have been generally esti
mated at about $500, OOO. 900. whn
their claims have been put at various
figures. Director General Of Rail
roads Davis in a recent estimate {,
Congress declared that while all tn
claims were not in, it was though
the total would be $3.50. 900, 600
which If settled on the basis OF abou
forty per cent as heretofore, woul,
approximate 100000.