The labor journal. [volume] (Everett, Wash.) 1909-1976, 1921-08-26

the people to favor private corporal
(By Clint C. Houston)
rs. 2337 in the Senate of the
United States, by Mr.. Townsend OF
Michigan. A bill to amend the
Transportation Act, 1920, and fol
other purposes"
This is the simple title of the ad-
ministration measure which pro-
poses to give the railroads another
half billion dollars. The bill con-
tains only 700 words, and is writ
ten so ambiguously, say many Sen
ators, that the amount can be raised
to a billion or more. In fact, It's
author admits that several amend
ments will be necessary to make
it workable for understanding and
application. The main point, how
ever, is to jam it through before
the mass of the people have an op-
portunity to learn its intent or can
enter a protest. A similar bill
has been introduced in the House.
The measure was before the Sen
ate committee on interstate COM
merce last week, but its opponents,
led by Senator La Toilette of Wis
consin, blocked the plan to have it
reported out Immediately. Acting
Chairman Townsend, who presides
over this committee in the absence
of Senator Cummins, away on sick
leave. invited Director Meyer OF
the War Finance Corporation, and
Director General Davis of the Unit
ed States Railroad Administration,
to testify in support of the bill.
Legerdemain Legislation
The measure proposes that the
War Finance Corporation, which was
recently rehabilitated ostensibly for
the purpose of supplying credit in
domestic and foreign markets for
the purchase of American produce
and to thus relieve the agricultural
and industrial depression, shall,
through the sale of railroad securi-
ties held by the government, or
certificates of the corporation, pro
vide the railroads with $50O,0OO,O0O
because their executives and man.
ayers say they need the money,
which their own credit is unable to
obtain in the regular money mar
kets. =,
AS matters now stand the rail-
roads owe the government $7OO,00O,-
600 for additions and betterments
during the period of Federal opera
tion. The government owes the
railroads $450,000,O00 on unpalo
compensation for use of the roads.
Under usual business methods the
latter amount would be subtracted
from the former; the roads would
nav the government $35O,O0O,0O0,
and the account thus would be squar-
ed. But the railroads don't do bus
mess under established rules.
La Toilette Objects to Haste
When Messrs. Meyer and Davis
had completed their testimony ad-
yocates of the bill said they had
heard enough and did not see the
wisdom of extending the hearing
by calling further witnesses. Sen
ator La Toilette objected to this
hasty procedure on so important a
measure and asked that William &.
McAdoo and Walker D. Hines, form
@, Federal directors of railroads, be
called. This was not to the liking OF
the railroad members, and strenuous
protests were made by Senators kel-
logg, Watson of Indiana and Pom
dexter. They were fearful that too
much public opposition to the bill
would be aroused by continued open
discussion of its merits.
Senator Watson moved that the
committee go into executive session.
thereby excluding the press and
public from the room. He later
withdrew this motion in the face
of strong opposition by other mem
hers. Senator Pittman of Nevada
then moved that the chairman be
instructed to call former Director
General McAdoo as a witness, Mr..
Hines being in Europe. On this
motion Senator Watson demanded
n roll call of the committee. SEN
ator La Toilette called attention to
the absence of a quorum and the
matter of inviting Mr.. McAdoo
went over until the next meeting
Acting Chairman Townsend express
ed the opinion that the testimony
of McAdoo and Hines would mot
be worth much to the committee,
Hurries to the White House
Opponents of the bill had scored
at least a temporary victory III that
it's advocates were unable to get II
reported out. After adjournment OF
the committee Chairman Townsend
visited the White House and made a
discouraeing report to the Presi-
dent. He said so much opposition
to the bill had developed in the
Senate that he did not think it
could be put through during the
present extra session of Congress
and possibly not before next Jan
uary, even if reported out favor
ABLY by the committee. However
at the request of the President. he
sent telegrams to all absent mem
bers of the committee urging their
nresence in Washington in order
that the bill could be acted unon
in committee and placed on the Sen
ate's calendar for action at the
earliest possible opportunity.
Friends of the railroads had hop
ed to have the bill written into
law before a recess of Congress
,x,k;oh ;s eohadulad IN extend over