Perth Amboy evening news., 1921-02-04
FINANCIAL RELIEF FOR RAILROADS.


There is every reason to believe that Gen. W.
w. Atterbury. vice president OF the Pennsyl-
vania Railroad Company, is sincere in his state
ment that many of the railroads in the coun-
try are facing bankruptcy under existing con-
ditions and some steps are necessary to afford
immediate relief. This being the case it is with
in the power of the government to give at least
temporary assistance by merely living UP to its
agreement with the railroad when the roads
we're returned to private control.
In this connection there n now due the rail-
roads $40, 900, 900. This money is held up on
a technicaiity by the Treasury Department. 1t
seems that what is known as the transporta-
ton act of 1920 provides for compensation to
the railroads for deficits incurred under fed
eral control. The purpose Of congress, it is
generally admitted, was to render aid to the
railways 30 that In the interests of the people
as q whole. during this period of readjustment,
the carriers might as speedily as possible make
the additions and b~etterments necessary to
meet properly the requirements of the nation.
According to the construction placed upon
the law by officials of the Treasury Department
the railroads are not to revsivs any of this
money due them until their entire claims have
been audited and certified to the Treasury De-
partment for payment.
The railroads have asked that partial pay
ments be made as amounts due to the carriers
are certified by the Interstate Commerce Com
mission from time to time SO that they may
meet their current obligations. Becaus, of the
refusal of the government to pay over anything
until the whole amount due is certified the rail-
roads have been forced to go to the banks to
borrow thereby piling up credit that ought to
be diverted to other channels.
With the railroads in the condition that they
are financially 1t is plain that the quickest way
to obtain relief is for the government to mako
the funds that are legitimately due
the carriers. This Is no time to stand on tech
The whole Industrial fabric of the
nation is threatened because of this petty atti-
tude Of the Treasury Department.
Legislation that would remedy the situation.
by expressly declaring it to be the intent of con-
gress to permit partial payments to the car
riers as the amounts due them are certified from
time to time. has been introduced In congress.
as it does the disastrous consequences
from the wholly avoidable tieup of
credit facilities involving hundreds OF millions
Of dollars. the American Bankers Association
has urged. with all the earnestness it is capable
Of expressing that congress act Immediately and
upon this legislation for the strength
that will be given to the c~ountry's credit struc-
ture. by the prompt release of this huge sum
that is due to the railroads.
With this relief afforded the railroads could
then proceed to negotiate with their men the
of wage adjustment and such arbitrary
as Gen. Atterbury requests of the labor
board would not be necessary. Let the federal
government cut its red tape. cease pickering
over it's technicalities and help render some real
service to the country through making 1t pos
sible for the railroads to obtain the financial re-
that is so vital to their very e~xistance at the
present time.