New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-10

no matter what settlement was agreed
upon with government agencies. The
facts are that if the roads adjust their
claims satisfactorily on the no-ineffi-
cient labor basis the matter ends. 1t
IS only the claims where dissatisfied ton
is expressed that viii! be appealed to
the courts.
Hoped for Speedy Action
The situation was thoroughly cam
vassed at the Cabinet meeting, and the
members who had been misinformed
concerning the situation were enlight-
ered. The Administration hoped for
speedy action on the settlement bili in
order that funds II ght be available to
adjust the claims which require no
further adjudication. The Railroad
Labor BOARD has been paying out near
~ So0,000.0 600 a month in claims id
Justed with the inefficient labor clause
left out.
Before the Senate Interstate Com
merce Committee Eugene Never ir.,
managing director of the War Finance
Corporation, made partial statement
of his views
At the same time it was announced
that the House Interstate Commerce
Committee would consider the bill at a
NEE ing Thursday.
., Mr. Meyer took an optimistic view of
the hects OF the passage of the rail
road bill on the roads on labor and
general business conditions He de-
clared that in his opinion it would
greatly aid the unemployment stu
alton if the bill were passed and set
Elements made with the roads under it.
tnlnk it is safe to say that the
employment of million men this win
ter is at stake on the passage of this
or similar bill" said MIR, Meyer.
lie linked up together the pending
railroad bill and the farm export
financing bill recently passed by the
,1ena1e' re expressed the view that
me operation of these two measures
Jointly ought to mean the beginning
OF re end of the acute period from
which the country had suffered.
MH. Meyer, who did not complete his
testimony before the Senate Commit
tee, Will resume the stand tomorrow.
Director of Railroads James C. Davis
/, OF one OF the interstate Commerce Com
mission members will follow him.
!, at the outset Mr.. Meyer explained
that the bill is intended to give the
War FRance Corporation power in
conjunction with the Railroad Admin
lEsstration' to purchase and prepare for
1lotation about $500, 100000 worth of
railroad bonds, to be turned over 10
the government in payment of sums
uue TO the government for betterments
OF the roads in the Federal operation
PERIOD. The roads are to receive the
cash ei arising from the bond sale from
we government IN settlement of the
ment. o
1t is the idea of Mr.. Meyer that the
payment of the large sums involvnd
TO the roads at this time in the form
or ready cash will 60 far to nut the
railroads on their feet.
MI. Meyer said the War Finance
corporation would have no business
directly with the railroads, that it was
proposed to revive the powers of the
war FINANCE Corporation and enable
II to buy such securities as it deemed
sary, he pointed out
The present tendency is toward ;r,-
provement of the railroad security
market. Passage of the bill, Mr..
Meyer said, would stimulate business
and cause not sudden Jump but a
gradual improvement.
Il think the condition of the rail
roads is improving" he said.
Mr. Meyer added that an increase
in the net earnings and decrease in
expenses has been achieved Through
accounts.
He said the railroads could not con-
tlnue this under maintenance, because
if they did it would mean the ultimate
physical breakdown of the transporta-
ton system
Market for Securities
He thought market could be found
for some of the equipment trust Sc
curities now held by the government,
and that II the gross earnings of the
railroads continue to improve and the
recommendations to two secretaries of
the Treasury are adopted and the ex-
cess profits tax is eliminated, the gov
eminent could dispose of these securi-
ties at a profit.
ut is estimated that 100000 men
can be put to work at once on main
tenancc if this measure is passed." he
said.
He added that locomotive works were
only operating at about 20 per cent
of capacity and car works about the
same
The witness estimated that the rail
unpaid vouchers. He said he did not
think the transportation act had had a
fair test because of business condi-
tons
II business could revive and the rail
roads could DO put on their feet there
would be q more prompt reduction in
rates than is possible under existing
conditions, Mr. Meyer believed. He
thought rates should be reduced when