Evening star., 1921-06-24
RAILROAD HEADS
WORRY PRESIDENT
Impatient for Roads to Ad.
just U. S. Claims at Once
to Aid Business.
BY DAVID LAWRENCE.


President Harding revealed to the
western bankers who gathered at the
White House significant impatience
with those railroad executives who
have neglected to come to Washing
ton and straighten out the large
claims which they have against the
government as a result Of war opera
tions of the roads.
While the first conference with the
eastern bankers covered the subject
of foreign trade and the handling Of
foreign loans, the second session at
which bankers from the west were
invited found itself soon concentrated
asked for views on the business situ-
alton throughout the country and
sought direct information as to meth
DDS of alleviating the present depres-
sion.
At practically every turn the rail-
road question thrust itself forward.
1t was brought out clearly, for in
stance. that many factories and mills
were shut down because the purchas-
| ing power of the railroads had been
diminished.
| So the query naturally suggested
itself as to how the railroads could in
crease their purchases and a great
| many of the bankers present seemed
F. to think the adjustment of war claims
would be a valuable stimulus to the
railroads. The Treasury Department
| has a fund of approximately a quarter
of a billion dollars on hand which it
| stands ready to pay to the roads
| whenever an agreement can be made
! on claims.
President Wants Action.
| Like a great many other concerns
which did business with the govern
| ment, however. during the war the
railroads put in a maximum claim
| feeling perhaps that the exact figures
] could be arrived at in conference
! later on. The government wants to
/ pay what is fair and probably the
| railroads will be glad to get an
| equitble adjustment, too, but the rail-
| roads have not shown as much in
terest in settling those claims as
| the government would like to see
| manifested. Every once in a while a
railroad executive comes down and
after a conference with government
authorities agrees to the settlement
proposed. but what President Harding
| intimated at the conference of bank
ers was that the railroads ought to
get busy and send more of their
executives here and dispose Of the
question promptly.
He was very diplomatic in his ref
erences to the railroads, and spoke
only in the sense that he believed the
railroad executives ought to cooper
ate with the government. which, he
insisted. was more than anxious to
help.
The payment of a quarter of a bill
lion dollars to the railroads would
start many factories going again and
would enable the railroads to do many
things. the neglect of which at pres
ent is having a psychologically bad
effect on kindred industries.
Farmers Make Progress.
The general tone of the answers to
Mr. Harding's questions about busi-
ness conditions was optimistic. Some
of the bankers said the farmers were
getting on much sounder basis. and
that considering pre-war prices of
wheat the agricultural industry of
the country was reaptng fair prices.
OF course. that's the bankers view.
but it is significant to contrast these
expressions from western bankers to-
day with the cries of distress which
were being raised SIX and nine months
ago.
Mr.. Harding asked for suggestions
and declared his anxiety to receive
any proposals which might help the
general business situation. George
M. Reynolds. chairman of the board
of the Continental and Commercial
National Bank of Chicago. took the
position tnat America HrSC duty Is
40 care for SO per cent Of our business
which, he said, was domestic and let
the other per cent Of foreign busi-
ness take care Of itself. He argued
that improvement in Europe through
foreign trade financing was not worth
buying at the price of Americas i'm
poverishment. In answer to this, the
argument was made by other bankers
that whatever may be the percentage
Of business with foreign countries it
was a vital percentage and could not
be ignored.
Cotton, for instance, always has an
exportable surplus which must be
financed. To neglect the financing of
cotton would damage the south. The
same is true Of other sections Of the
country which depend for their ex-
istence on the, sale annually of an
exportable surplus.
Holds to Middle Course.
To the dispassionate observer who
has no particular relationship to the
banker Of either the east or the mid
die west, it is apparent that the ex-
treme position adopted on the one
hand by Mr.. Reynolds, who leans
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