Newark leader. ([Newark, Ohio]) 1917-1946, 1921-09-23
LOAN IS SLATED
RAILROADS WILL BE GRANTED
ALL THEY ASK
No Doubt But That Half Billion Dol.
lar Deal Will Be LObbied Through
the Senate as First Step in
Reconstruction Program"
(By Federated Press)


Washington-Prom passage of
the $5OOOOO,OOO loan to the railroads
has been determined upon as the first
step in the Presidents Reconstruction
program" and when Congress recon-
venes September 21 the whole weight
of the Administration will be thrown
into the scales to force this measure
through the Senate.
There is not much doubt but that
the measure will pass. 1t is true there
is a large and growing opposition
among the people, but this will not
have much chance to make itself
manifest. Senators are elected for
six-year terms and that body as a
consequence always has felt itself
able to fout the people. The House
is more responsive as its members
come back for reelection every two
years, but the House passed the rail-
road bill just before adjourning. That
was one of the shrewdest moves the
Administration has made. 1t was
felt that many congressman might
buck after they had been back home
and "heard from the people," so the
measure was jammed through prior
to the recess.
LaFollette, Norris, Ladd and few
other liberal Republicans will oppose
the hslf-billion dollar loan to the rail
roads in the Senate, and they may de-
lay passage of the bill for some little
time, but the "Old Guard" has deter
mined upon this measure, and, as
last resort, can rely upon the vote OF
standpat Democrats. The Democrats
as party will oppose the measure,
but if the division should be close
there will be more than enough Dem
ocratic defections to offset the liberal
Republicans.
The Administration believes that
opposition to the loan will be allayed
if the people are convinced that it
would end unemployment. AS a con-
sequence the most extravagant claims
are being made by Administration
Tn 70
claimed so much that they have pretty
we'll clipped off" the real purpose of
the conference almost before it's call
was made public. Secretary Hoover's
local organ, the Washington Herald
has been particularly candid in this
matter. 1t has used language that
has left no doubt whatever about the
underlying purpose of the industrial
conference being the recommendation
of the railroad loan.
The cabinet members close to Har-
ding seem to believe that loaning hall
billion dollars to the railroads will
start the wheels of industry revolving
again, but there are others who are
not so confident. They believe that
the railroad loan will be used to pay
deferred dividends instead of employ
ing labor and that stock spectators
will benefit more than jobless work
ers.. These men deplore the lack Of
constructive vision shown by Admins
tration leaders and see very stormy
political times ahead.
Those who follow the political stu
alton closely are predicting a Repub
lican reversal at the Congressional
elections of 1922. Of course, this il
mere guess-work, but it does indicate
, the general dissatisfaction with th'
record of Congress since March A.
In the meantime the administrator
is stalking great deal on the rail
road loan. Harding is insistent tina
it be passed at once. If prosperit!
returns he will claim the credit. If i
doesn't return there are many shrew'
observers who believe the Admins
tration is done for so far as it's polit
ical future is concerned.