Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-07-24

2 fastened by Present Need.
Decision to settle the account be.
tween the government and the roads,
IN chief part, was reached by President
| Harding some time ago, being hastened
somewhat by the pressing need for
cash on the port of most of the rOads
The. plan outlined above was proposed
on behalf of the administration of the
Association of Raiway Executives at
It's meeting in New York last Wednes-
day and after considerable discussian
was accepted, although the roads wan
lted ID years in which to retire their
securities instead of the 10 they viii
| get. and expressed their belief that the
amount of cash they should receive in
payment now of their pressing claims
against the government should be $780,
eOo,OO0 instead of S400.OOO.OOO.
Can Pay Only S400, ,O0O, 900.
( There seems to be question. how
ever. as to whether the government is
IN position to pay the roads $780,
/ ooo,otn. much as it desires to settle
its bill and enable the roads to get
cash to settle theirs. Looking over
| the field here it was found that there
would be no difficulty in raising s4Oo.-
100000 through the war finance cor
! poration and the railroad administra-
| ton. That leaves gap of S1OO.O00.-
900 and it is considered possible. though
unlikely that congress will be given
the suggestion that it authorize filling
| that gap by the purchase of railroad
securities.
! The railroad administration has
| somewhere between one hundred and
two hundred millions in cash with which
to settle claims. 1t is doubtful wheth-
er more than $1O0,OO0.OOO of that
amount could be spared without pinch
| ing the railroad administration in its
further work. In addition, there are
available equipment trust securities
issued by the roads and held by the
government. maturing 141a years
hence, to the extent of about $780,
OO0,O0O.
Will Lend Face Value.
The war finance corporation could
be called ON to lend face value of these
equipment trust securities or BOO
0o0.0o0 to add to the railroad admins
available a total of 100000. .00O But
manifestly the corporation could not
be called upon to make loans where ii
has no securities therefor and it
would thus appear that as conditions
o0.00O.0OO from the government in
stead of the $500, 900, 900 which orig
inally was suggested. Congress might
provide the other $1O0,0OO,OOO, if re-
qucSted to do so.
AS for the roads, they are under
stood to expect about 500 10000,
although they would like to see it in
creased. 1t is estimated that of this
amount about half would have to be
paid out by the carriers at once for
bills for coal and other supplies al
ready due or overdue and that the re-
mainder would be available for re-
pairs. improvements and the payment
of interest on indebtedness.
In No Sense a Gift.
In no sense would the 500. O.OOO, 600
be gift to the roads or an expense
to the American people. The govern
ment would exact per cent interest,
which is slightly less than it would
have to pay today to borrow the
money.
In any event the transaction Will re-
suit in making available a good many
handfus of millions to be scattered
among the industries Of the country
which supply the roads with all they
need and sonsume in the way at ma
terials, supplies and repairs and, il
is thought. will give noticeable -
petus to the business revival now on
the upward trend.