New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-12
Rail Bill Likely
To Go Over to
Next Congress
Passage of Relief Legisla-
ton Expected To Be De
layed Until Mid.January;
Decision II. Due To-day
Harding Calls Conference
Davis Declares All Roads
Will Be Ins0lvcnt Unless
Situation Is Improved
From The Tribune's Washington Bureau

From The Trtbune's Washington Bureau
WASHINGTON, Aug. 1.-THE Adj
ministrstion bill for the relief of the
railroads will not be passed at the pres
ent extra session Of Congress- but will
go over until the regular session, next
December, it became apparent to-day.
If the 4ht asure goes over until the reg
ular session, it probably will not be
passed before the middle Of January.
The Senate Committee on Interstate
Commerce will decide tomorrow
whether to go on with the hearings on
the bill. Abandonment Of the hearings
would doubtless mean that the bill Will
go over until the regular session.
The prospects Of long delay are such
that a conference was held ct the " hte
House this afternoon, attended by the
President, Senators Kellogg and Wat
son, of Indiana; Director General Davis
and Eugene Meyer jr., managing di
rector of the War Finance Corporation.
The conference will be continued to-
morrow.
Director General Davis told the SEN
ate Interstate Commerce Committee to-
day that if the railroads DID not do
better all will be insolyent' lie said
Congress would be called on to appro-
pirate S200,0o0.00 to make u final set
clement with the roads THIS is in ad :
dition to the $500, 100000 it is propo sed
to pay he roads in cash cut OF the
proceeds Of railroad bonds sold by the
War Finance Corporation. He said the
settlement with the roads, except IS to
some minor details, ought to be COM
pleted by the end Of 1922, unless It'll
cation caused delay.
Marking Of Idea Impractica.sle
Senator Townsend wanted to know
why the government and the railroads
did not offset or"mark off," their debts
to each other.
Mr.. Davis replied that this would
not bring immediate aid TO the roads,
which was what they needed in order
to help IN restoring conditions to nor
NAL.
THE roads might be able to borrow
at per ccne and they ight not" said
the Director General. "Iais plan as
sures the roads money at per cent
very soon, and that. coupled with an
increase in railroad business which |
believe is coming, will greatly help the
country"
It was not contemplated, he said, in
ihe interstate commerce law that cap
ltal expenditures should be paid out
Of current revenues. lie said the pay
ments for additions and betterments
would normally be made through issue
of long term securities.
e "What effset viii it havq9 or on the
wstson Of Of rnG nsa Cts b Sfsa9
passed before January IS, as in my
judgment it cannot be ?"
"The roads will suffer from inefi-
cheney of service" said Director Gen
eral Davis.
Senator LaFollette made public a
letter which he had written to SEN
ator Cummins, chairman Of the In
1erstate Commerce Committee, urging
the Importance Of summoninc William
G.. McAdoo and Walter D. Hines He
held that full protection of the public
interest demanded that they shed what
light they could on the railroad CON
tracts with the government and the
disposition of the railroads debt to
the government
Senators Disagree on Program
st the committee hearing Senators
cashed over the question Of cutting
the hearings short.
Senator Kellogg, of Minnesota, OBJ
Jected to calling former Directors Gen
err McAdoo and Hines, and expressed
desire to cut short the hearings.
senator La Toilette replied that he
protested against hearing one side
only.
"You are satisfied. of course, with
the testimony which has been given
By .hosc in favor of the bill" he said
"There are some who are opposed who
ought 10 be heard"
Senator Townsend, acting Chairman,
objected to calling "the stock list of
witnesses" who appear on every propo-
sition but said he was willing to hes.
those who could give real information,
including McAdoo and Hines.
Senator Watson, OF Indiana, took the
| view that if the Senate recessed unit,
September 20 there would be no time
to pass the railroad bill in the extra
session, because of tax and tariff, ano
that the bill would be delayed unit
January.
Senator Townsend adjourned the
meeting with the understanding tbs
committee would convene tomorrow
morning to hear McAdoo and Hines
and then would decide whether to &c
on with the bill this session or droo X
Director General Davis WAS asked ts