The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1921-07-11

can agree In respect to claims arts.
ing out Of the period. OF federal rail.
way operation. He has no power
to coerces but full power to nego.
tate.
COTS selection as mediator in the
railway settlement, representing
the president was the result Of the
forcefulfand thorough-going way in
witch, az the recent White House
dinner to western bankers, he pic.
tured the iovernment'ss failure TO
effect d settlement with the roads
as the biggest single barrier to a
revival ot business. His presenta-
tion % the case so impressed
Harding that he was asked to I'm
dertake the ihastenfng of a settle.
mert through negotiations with the
director general OF railways, the
i~ntefstate Commerce commission
and the executives Of the various
rnads.s
Hoover, as adviser In CONNER.
eiaa conditions affected by any set
tiemeht, and Mellon as adviser in
necessary funding and financing,
ere directed to cooperate with
com
The size OF the job of this So.
seaf.olds Cleveland banker may be
understood when ii is realized that
disptrted claims amounting to
more than a billion dollars must
be composed before a settlement
can be reached.
The government has claims
against the roads for $774,537,00O
spent during the period Of federal
control for new trackage, terminals
and equipment. This sum repre-
sents new capital, which the gov
eminent has commended should be
used as an offset to what<the gov.
eminent the roads for rental
and guarantees.
The railroads contend the gov
ernrnent owes them, on account Of
rentals, guarantees, undermainte,
nance, etc, between $1,000 ,000
and s1s5o0,000,o6o,
The roads maintcin they cannot
now finance by new issues Of
stock, the three-quarters Of a bill
lion owing the government on CAPT
tai account, and that the deduction
OF that sninEfrom the governmental
payments Is equivalent to attempt
ing 10 meet these heavy new capi
tai charges out Of current earnings
ON the other hand, the director
OF railroads, James G. Davis, con
tends that the roads in presenting
their bills for final settlement have
padded them with hundreds Of mil
lions in claims t;E. cannot be sup
ported. 1n~Ssettlemllts5 with abouI
50 GlassS0ne roads, the amount
paid wa sunly about 40 per cent
OF the amount originally claimed
as due. Specifically a. roads filet
CLAIMS Of S96,S21;S01, but accepted
in settlement $se,2S6,e14, or 43.t
per cent. Of the amount. Settle
ment IS sti1lspending, however, witt
about 100 Glass One roads, ant
some 200 shnrt line and termtna
roads. 8bbs
VIII Recommend Funding Of Gov
er1tnent Investment.
One Of the first things Goft vii
recommend for the relief Of Thu
railroad situation Will be the fund
Ing, for & period OF 10 years, Of thu
s~774,0o0.000i 7capital investmen
made by the government in thu
roads.
This would relieve the roads o
the necessity OF hunting for, privat,
capital to cover this Investment
and would mean that the total o
unpaid rentals and guarantees ow
ing the roads would be paid. This
re declares, would give the road
cash with which to meet outstand
ing bills, to get busy improving
rundown road beds and repairing
Observation-Disclosures. II would star
steel mills and railroad suppl!
shops. i've an upward impetus t
employment and set the whole in
dustriai machine moving as no 9th
or single force could.
A second step in Goff's negotia
tons wfltl be to- induce railroad e1
eeutives 10 get together on the ma
fure OF Mo clnilnsy to be incorporat
cd In tI bhs to the govern
ment. B9ts 1lready presentet
haye varied widely in the naturt
OF the items charged. II an agreel
formula could be followed, tn,
auditing md settlement OF tn
claims cp1ld he expedited.
Holds Payment Due for Under
maintenance.
Cor win ehampion the raflroaI