Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-07-27
HARDING ASKS CONGRESS TO
WIDEN SCOPE OFPOWERS or
WARFINANCE CORPORA TON

ration to purchase securities, prob
ably UP to $500, 100000 now in the
hands of the railroad administra-
ton, so that the proceeds may be
used for settlement with the rail
ways.
No Additional Money Asked.
This, the president told congress,
would open the way to "early ad-
justment and relief" of the rail-
road problem. There was no
thought, he said. of asking congress
for additional money.
Railway claims. based on the :"
efficiency of labor" during the
the president said, were tg,TA
waived for the present to t.e ~
settlement without surreniSlSp II
any rights in court. Althoa g me
railways owe the governing 81 5irge
sums, the president said ~ gov
ernment also owed thtG% jroads
large sums on various C% 2nts.
''No added eXpens a. aid the
president, explaining ~ 4 request,
mo added investm required
on the part of tt government
there is no added III Aiity. no add
ed tax burden"
Grant of Authority.
at is merely the grant of au-
thority necessary to enable a most
useful and efficient government
agency to use its available funds to
purchase securities for which con-
gress already has authorized the
issue, and turn them into channels
of finance ready to float them.
"The contract covering operation
provided that the railways sholid
be returned to their owners IN as
good condition as when taken over
by the government, and the trans
portation act, recognizing that pet
terments and additions belong TO
capital account, provided that such
sums as the railway companies
owed the government for better
ments and new equipment, added
during the period of government
operation, might be refunded.
There has been, at no time, any
question about the justice of fund
ing such Indebtedness to the gov
ernment. Indeed, it has been IN
progress to measurable degree
ever since the return of the ran
roads to their owners. 1t has oeen
limited, however, to such cases as
those in which final settlements
with the railway administration
have been effected. The process
is admittedly too slow to meet the
difficult situation which the own
ers of the railroads have been
facing, and l believe it essential
to restore railway activities and
essential to the country's good for-
tune to hasten both funding ana
settlement.
Government Owes Railways.
"Ouite apart from the large sums
owing to the government, which we
are morally and legally bound to
fund, the government amittedly
owes the railway companies large
sums on various accounts, such as
compensation, depreciation cnd
maintenance.
1.-The way now would seem TO oe
clear to very early adjustment and
relief except for the fact that the
railways administration, though
possessing assets, does not COM
mand the funds necessary to meet
what will be it admitted obligations.
"There is no thought to ask con-
gress for additional funds. Per-
haps $500,000.0 will be necessary.
The railroad administration has, or
will have in the progress of funding
ample securities to meet all re-
quirements If congress only will
grant the authority to negotiate
these securities and provide the
agency for their negotiation.
No Added Expense.
"With this end in view you are
asked to extend the authority of the
war finance corporation so that it
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