The Washington times., 1921-07-26
URGES j. s.
PURCHASE
R. R. PAPER
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waived to hasten complete and final
settlements, without surrender OF
any rights in court In case there Is
failure to settle. l have no doubt
that early. final and satisfactory
settlements will be reached, since
the policy of the Railway Administra-
ton already has been effective in
finally settling the accounts of roads
filing claims amounting to $225, $685.
764, resulting in the payment to
them Of s6S.141.222.
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
will be its admitted obligations.
No Additional Funds.
There is no thought to ask Con-
gress for additional funds. Per-
haps $500, 100000 will be necessary.
The Railroad Administration has.
or will have in the progress of
funding, ample securities to meet
all requirements IL Congress only
will grant the authority to nego-
tiate these securities and provide
the agency for their negotiation.
With this end in view you are
asked to extend the authority of
the War Finance Corporation 30
that 1t may purchase these railway
fund securities accepted by the
director general of railroads. No
added expense. no added investment
is required on the part Of the Gov
eminent; there is no added liability,
no added tax burden. 1t is merely
the grant Of authority necessary
10 enable a most useful and eff
cient Government agency to use its
available funds to purchase securi-
ties for which Congress already
has authorized the issue, and turn
them into the channels of finance
ready to float them.
1 can readily believe that so sim
pie a remedy will have your prompt
sanction. The question of our obli-
cation cannot be raised, the wis
dom of affording early relief is not
TO be doubted, and the avoidance
of added appropriation or liability
will appeal to Congress and the
public alike. ..
great and fundamental activities
attention of the country. One Is
the readjustment and restoration
of agriculture, the other is the dis
tress Of our railway transportation
system.
Pending proposals for relief and
their discussion have already
brought to the attention of Con-
gress the very promising POSSIBLE
tiles of broadening the powers OF
the War Finance Corporation for
the further relief of agriculture
and live stock production. This
corporation has proven itself so
helpful in the relief thus far under
taken, that I can not help but be-
lieve that its broadened powers, as
have been proposed, to meet agri-
cultural needs. will enable it wholly
TO meet the nationwide emery
ency. This is an impelling moral
obligation to American farming in
all its larger aspects, and 1t will
be most gratifying to have your
early sanction.
Moral Obligations.
In the case OF the railroads there
Is a moral and CONSTITUTIONAL
obligation, and your favorable &C
ton Is no less urgent, and will no
zoos oppcoi W PoohS oppioNots INuii-
way solvency and efficiency are
essential to our healthful indus
trial, commercial and agricultural
life. Everything hinges on trans
portation.
After necessary and drastic cur
tailments, after narrowing straits in
meeting their financial difficulties,
the railways need only this financial
aid which the fulfflment of our obli-
cations will bestow. to inaugurate
their far-reaching revival. Its ef-
fects will be felt in varied industries,
and will Danish to a large degree the
depression which, though inevitable
in wars aftermath, we are all SO
anxious to see ended.
I am appending herewith memo
randa concerning the progress of
railroad liquidation and revealing ex-
listing conditions which Congress will
be interested to note, while consider
ing the simple remedy proposed for
the relief of the situation. The I'M
formation is submitted by the Direc-
tor General of the Railroads.
WARREN HARDING,