Evening star., 1921-08-24
M'AD0Q. OPPOSES
't:lE.RA|L ElJA|D|NG BILL
Says D., S. Is Not Bound to
3und s76a, ,ooo, 900 Owed
- for Retterments.

n, Disapproval Of the ADMINISTRATORS
HeilroAd funding bill. recently report
Nd by the Senate interstate commerce
Wommittee. was expressed by William
80. McAdeo. former director general
iyf railroads. In letter presented to
MAe Senate today BY Senator Stanley.
DIR McAdoo's views after the COM
shittee had refused to hear him.
i. The government is not morally
X1d legally bound" as sta tod by
XTseadent Harding. to fund the $7SS.-
Aoo,o the railroads owe the govern
Naent for additions and betterments.
s6r. McAdoo asserted. He declared
Ethe President must have been mis-.
1ed into making such a statement,
Sddfng that the law provides for the
handing only Of ''the remaining in
4sbtedness'' Of the railroads, which
Ne calculated at 3363, 100000.
81 Hay De Deferred TSa Years.
4. Payment Of this balance. Mr. McAdoo
Eta&ed. may be deferred ten years by
The railroads provided satisfactory Se-
0ur7ty were given and per cent interest
We're paid.
y This is the kind Of settlement the
INV now a0thoriaes and contefnplates, ;"
Mdr. McAdoo said. adding that when the
Ssoads were returned to private control
MOO for additions and betterments. of
Nhich $3s1. .0ee, 900 already has been ex-
tended for q long period. He said that
before any further advances were made
th0 railroads should be required to
abandon the '.inemciency Of labor
claims. amounting, he estimated. to
about $500, cot. 600.
Il suppose you realize that In addition
70 the 3l.14l.o0o. 900 the railroads owe
the government for additions and bet
tesme1ts' they have received additional
loans under the Esch- -Cumn1ins bill Of
St4aAeoo.ooo," Mr.. McAdoos letter
Question Of Policy.
stripped OF confusing non-essen-
tiais. what is now proposed Is that
for S7sa. eco the railroads owe it
for betterments and improvements and
pay Immediately $500. 100000 to the
railroads on account of claims for
alleged undermaintenance.e ETC. taking
from the $50 or more railroads In
volved wtth their varying degrees of
financial responsibility such securi-
tiles as they may be able to provide
securities which IN many instances
may not be adequate to protect the
government against loss.
This Is not question OF legal and
moral obligation on the part of the
United States to lend the railroads
$5e0. .oo0, zee more for ten years. 1t Is
q question Of policy and should be
considered from that standpoint only.
For tho adoption OF such a policy the
administration must. Of course. take
the responsibility, but it should be
candid about It The public mind
should not be confused by Juggling
Of aEures, manipulate of accounts.
securities or governmental agencies" !"
~Mnst Csne to Rescu4"
Senator Stanley, In presenting the
letter, declared the railroad bill
would Tick up the last dollar made
available TO the War Finance Cor
poration In thirty days"
the country have collapsed" he said.
at matters not whether the folly or
the fault may be attributable to the
railroads OF to the government: COM
now all the trafnc will bear. then
the Eovsrnmant must come to the
rescue.
III the commercial life Of the
country demands 1t. q people. patient
stiii further drain upon the public
treasury. notwithstanding the fact
that within the last few years the
government has devoted nearly bill
hon and half OF money to the sup
1apstng credit Of the carriers Of the
country"
Asserting that the bill was "doubly
oAieetionable" Senator Stanley added:
Il protest both against the subject
matter and the methods employed to
forcs this thing through Congress
and to compel the Senate to accept
this thing sight unseen upon the
o. X. Of the President Of tho United
states and of few powerful ap-
pointees. who alone seem to under
aad his purpose and to share his
&6aNdenee.
K Z assert here and now. that this
Nm proposes to find a debt Of hun
Sreds Of millions which does not ex-
1T, which is not due and which can
oot be paid in this way without .
'fntolerable burden upon the tax
;Saysr."