The Bridgeport times and evening farmer., 1921-07-27
Harding Asks Congress To Extend Its Aid To
 War Finance Body

It's effects will be felt in various in tdustries and will banish to large degree the depression which, though inevitable in wars aftermath we are
 all so anxious to see ended"
 The text of the message was as | follows:
 gro the Senate and House of Rep | resentativeS:
 1 .1t is necessary to call the atten- +ion of Congress to the obligations | of the government to the railroads
 and ask your cooperation Tn oroer | to enable the government to olscnaEse | new about Sfre1n. but only recently | has there come an understanding
 which seems well to jus1fy a sincere | endeavor to effect an early settlement | These obligations already have been | recognized by the Congress, in the passage of the transportation act re- | storing the railroads to the1r owners
 but previous recognition was made III | inc contract under which the railroads were operated by the government for
 the period of the world war. 'fThe contract covering operations provided that the railways should be | returned to their owners in as good 1 condition as when taken over by the | government, and the transportatlon | act, recognizing that betterments ana | additions, belonged to capital ac- | counts provided that such sums as ! the railroad companies owed the | government for betterments. and new equipment, added during the period | of government operation, might be | funded. There has been at no time
 any question about the justice of
 funding such indebtedness to the gov | ernment .... I believe it essential
 to restore railway activities and es- sentiaI to the country,s good fortune
 to hasten both funding and settle
 ment-
 ne owing to the government, which we are morally and legally bound to l fund, the government admittedly owes the railway companies large sums on
 various accounts such as compensa- l tion, depreciation and maintenance There has been a wide difference of | opinion relating to the amount the
 government owes due in the main to the claim of the owners that in spite 1 of materials and hours of labor be- l ing estimated in proper relations to similar expenditure in the pre-war l test period, the 'inefficiency of labor still left a wide difference between &C., l tuaI up-keep and the expenditure
 made during the government oper- alton.
 Tn order to expedite settlement and funding, an informal understand ing which is all that is possible or practical has been reached, under which the railway claims based on the ''ineffieiency of labor'' are to be
  settlements, without surrendering or
 any rights in court in case there is failure to settle. I have no doubt that early final and satisfactory set rents will be reached, since the policy of the railway already has been effective in finally settling the
 accounts of reads filing claims
 amounting to $225, ,56S,765, resulting
 s22.'' S pay ii''i' ' '
 '-The way now would seem to be clear to very early readjustment and relief except for the fact that the
 sessing. assets, does not command
 the funds necessary to meet what
 will be its admitted obligations. S"There is no thought to ask Con-
 gross for additional funds. Perhaps
 $5OO,0OO,O00 will be necessary. The
 railroad administration has. or will have, in the program for funding,
 ample securities to meet an require mentS if Congress only will grant
 the authority to negotiate these se-
 curities and provide the agency for their negotiations
 with this end in view, you are
 asked to extend the authority of the
 War finance corporation so that 1t may purchase these necessary fund ing securities accepted by the direct
 Ur general of railroads. No added
 expenses. no added investment is re- quired on the part of the government
 There is no added liability or tax burden. It is merely the grant of
 authority necessary to enable a most useful and efficient government az ency to use it's available funds to
 purchase securities for which Con
 gress already has authorized the is sue and turn them into the channels of finance ready to float them ''I can readily believe that so sim pie remedy will have your prompt action.
 '"The after-war dfstresses of two great and fundamental activities have been receiving the anxious attention of the country. One is the read justment and restoration of agricule ture the other is the distress of our | railway transportation system 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 cor poration for the further relief of az
 riculture and livestock production. This corporation has proven itself so helpful in the relief thus far under taken, that cannot help brt believe that its broadened powers as have needs, will enable it wholly to meet the nationwide emergency. This is an impelling. moral obligation to American farming in all its larger aspects and it will be most gratify- ing to have your early sanction In the case of the railroads, there is a moral and a contractuaI obliga- tion and your favorable action is UT gent and will be no less appeal to | public approval Railway solvency healthful industrial commercial and a agricultural life. Everything hinges on transportation.
 After necessary and drastic cur
 tafiments after narrowing straits in | meeting their financial dif6culties
 the railways need only this