New-York tribune., 1921-07-24
Demand for Lower Freight
Rates Forecast When HIS
Message ON Funding Debt
Goes to Congress Tuesday
La Toilette to Take Part
Entire Situation May BE
Discussed; Victory for
President Is Predicted

!; and tho government over claims
/ is awaited with much interest in the
Senate and House. The President is
expected to make known details of the
plan in message Tuesday and win
ask for legislation under which the
plan can be made effective.
1t became known to-day that not
only will there be opposition to some
phases of the Presidents plan, but that
once the Administration bill is brought
forward, it viii be utilized as the
vehicle for carrying all sorts of dis
cussion of the whole railroad situation.
Especially will it afford some members
of both houses the opportunity for
which they have been looking to assail
high freight rates and demand that the
] 5s& per cent provision in the transpor-
tStion act, known as the guarany pro-
vision, be repealed.
VIII Fight High Freight Rates
The agricultural bloc in the Senate
and House is showing disposition to
oppose the Administration plan for a
settlement with the roads and to un-
/ timber its guns on the subject of hirn
freight rates, as it has been threaten
! ing TO do for weeks. Senator La Toilette
is one OF those preparing for such an
! attack.
1t is expected that in the end the
President will be granted the authority
he will ask. Whether the Administra-
ton bill will be amended to deal with
other phases of the railroad question
is uncertain. The sentiment in both
houses for repeal of the 51h per cent
provision is strong, and there is a
strong movement to prevent the Inter
state Commerce Commission from fix
ing rates within the states, and this
issue will doubtless come up.
/ Without much question it will require
considerable time to pass the Admin
lstration bill. One objection which
viii he raised to the plan is that it
would be better for the government to
Offset the claims ii has against the
roads and the claims the roads have
against the government, rather than for
the government to adopt plan of
giving the roads ready cash. The
however, is that it would not only ease
up the stress Of the roads for money
Dut, as its advocates assert, would tend
TO help the general business situation
Would Fund Claims Into Bonds
1t is the understanding that the Ad-
ninistration plan is along the lines of
the one talked over at a conference at
the White House about a week ago
at which were the President, Secre-
taries Hoover and Mellon and Senator
Cumnins, chairman of the Senate In
tcrstata Commerce Committee. This
plan in general way is to effect Il
settlement without an appropriation
The claims of the government against
the railroads for bette rnents would
be funded into bonds for ten years
or q similar period These railroad
obligations would then be turned over
to the government. The next step
would be for the government to take
the bonds and sell them to the public
perhaps with government guaranty
Out of the sale the government would
realize cash which it would utilize to
pay the railroads for the claims OF
the railroads against the government.
The War Finance Corporation is the
agency suggested to handle the details
OF the transaction so far as actually
putting the bonds on the markets. con
cerned.
Allowing for appropriations already
available, amounting 70 about $3.50, 600
600, the settlement could be made il
the government could realize about &
half billion cash out of the railrea,
bonds.
Eugene Meyer, head Of the Waa
Finance Corporation, was Rt the
Capitol to-day talking with Senators
about the Administered on railroad
plans. Mr.. Meyer also took up the
question OF the Norris Farm Tinanc-
ing Corporation bill, which iB tho un-
finished business before the Senate
The Administration wants this bill
modified materially, so that the War
Finance Corporation will handle the
proposition of aiding the expectation
of surplus farm products.
, Norris Bill Substitute Proposed
The plan proposed as substitute fol
, the Norris bilk which contemplates
$100, 10000 Federal corporation to
, finance farm exports, is to strip the
, Norris bill of the powers granted The
;. corporation to buy and sell and also
!, the bond guaranty provisions, and t.
{ power to extend financial backing tC
, private agencies engaged in export O
farm products. Senators held informa
talks to-day on compromise of the
. controversy over the Norris bill along
these lines.
. Inasmuch as the financing of tn,
railroad settlement plan and the fnanc
D ing of farm exports, as proposed by the
: Administration, would both be In the
y hands of the War Finance Corporation
/ it is proposed that the railroad settle
{ ment bill and the farm export plan b.
/ Incorporated into one bill This, how
{ ever, has met sharp opposition from
t some Senate leaders, who hold it woul
mean long delay on the whole PROPOSE
!. tion and that there should be tw,
: separate bills.
$ In connection with the. discussion
v over the issue Of large volume o
} bonds under the Norris bill, it has beel
r brought to the attention of Senator
f that Secretary Mellon is seeking t
f work cut a comprehensive plan unde
d which the whole series of bond issue
: in which the government is concerned
. Including the bonds for the foreigl
;, debt, the short time securities arisin,
a from the war, and other government
q bonds, including farm loan, will be re
= funded into long time securities on
= satisfactory basis. Included in thi
J. proposition it is hoped to work out tn
~ soldiers bonus bond issue plan. Secre
p tary Mellon hopes TO see this plal
rounded out in 1928. He does no
think the Norris bill fits into his plan
> Senators said to-day.
u
I American Catholic Students
d Are Received at Vatica,
W ROME, July 22.--Pope Benedict. to