New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-27

quite apart from the large sums
owing to the government which we
are morally and legally bound to
fund, the government admittedly
owes the railway companies large
sums on these accounts, such as COM
pensation, depreciation and mainte-
nance.
"There has been wide difference
of opinion relating to the amount the
government owes, due in the main to
the claim of the owners that in spite
of materials and hours of labor be-
ing estimated in proper relations to
similar expenditure in the pre-war
test period, the 'inefhciency of labor
still left wide difference between
actual upkeep and the expenditure
made during the government opera
ton.
Informal Understanding
''In order to expedite settlement
and funding an informal understand
ing, which is all that is possible or
practical, has been reached, under
which the railway claims based on
the 'iaefficiency Of labor are to be
waived to hasten complete and final
settlements, without surrender of any
rights in court in case there is fail
ure to settle.
81 have no doubt that early, final
and satisfactory settlements will be
reached, since the policy of the rail-
way administration already has been
effective in finally settling the &C
counts of roads filing claims amount
ing to 1925, ,764, resulting in the
payment to them of S6S, ,220.
"The way now would seem to be
clear to very early adjustment and
relief. except for the fact that the
railway administration, though pos
sessing assets, does not command
the funds necessary to meet what
will be its admitted obligations.
There is no thought to ask Con-
gress for additional funds. Perhaps
S500,000,000 will be necessary. The
railroad administration has, or will
haYs in the progress of funding,
ample securities to meet all require
ments if Congress only will grant
the authority to negotiate these Sc
curities and provide the agency for
their negotiation.
10 Added Liability
"With this end in view you are
asked to extend the authority of the
War Finance Corporation so that it
may purchase these railway funding
General of Railroads. No added ex-
pense, no added investment is re-
quifed on the part of the govern
ment; there is no added liability, no
added tax burden. 1t is merely the
grant Of authority necessary to en-
able most useful and efficient gov
eminent agency to use it's available
which Congress already sG has autho OFT
lied the issue and turn them into the
channels of finance ready to float
them.
Il can readily believe that so sim
pie remedy will have your prompt
sanction, The question of our OBJ
legation cannot be raised, the wis
dom of affording early relief is not
to be cvSted, and the avoidance of
added appropriation or liability will
appeal to Congress and the public
alike.
Helpfulness Proved
''The after war distresses of two
great and fundamental activities
have been rivetng the anxious at
tention .of the country.
"One is the reimbursement and res
toration of agriculture, the other is
the distress of our railway transport
tatioH system.
Pending proposals for relief and
their discussion have already
brought to the attention of Congress
the very promising possibilities Of
broadening the powers of the War
Finance Corporation for the further
relief of agriculture and livestock
production, This corporation has
proved itself so helpful in the relief
thus far undertaken that | cannot
help but believe that its broadened
powers, as have been proposed to
meet agricultural needs, will enable
is wholly to meet the nation wide
emergency. This is an impelling
moral obligation to American farm
ing in all its larger aspects, and it
will be most gratifying to have your
early sanction.
I'm the case of the railroads there
is moral and contractual obi
cation, and your favorable action is
no less urgent and will no less ap-
peal to public approval. Railway
to our healthful industrial, CONNER
clal and agricultural life Every
thing hinges on transportation.
Narrowing Straits
After necessary and drastic cur
tailments after narrowing straits in
meeting their financial difficulties.
the railways need only this finan-
cial aid which the fulfllment of our
obligations will bestow to inaugu-
rate their far-reaching revival. It's
effects will be felt in varied indus
tries and will Danish to a large de-
gree. the depression which, though
inevitable in wars aftermath, we
are all so axious to see ended.
81 am appending herewith men,
oranda concerning the progress of
railroad liquidation and revealing
existing conditions which Congress
will be interested to note while con-
sidering the simple remedy proposed
for the relief of the situation. The
information is submitted by the Di-
rector General of Railroads."
Senator Cummins, chairman of the
Interstate Commerce Committee, is ex-
'ected to introduce the Administration
abroad bill in the Senate. Repre-
sentative Winslow, chairman of the
house !,I interstate Commerce Committee,
"lli offer 1t in the House.
l"Ooi N"1lIuihS IS at Atlantic City,
put lnasmuch as he has for some
.lme advocated the funding of the
abroad DEBT TO the government and
ne SAFE OF the bonds in order to OBJ
am money to pay the roads what the
io owe. owes them, there is no
ation. proposed regis
The measure will gain much supnort
N Congress from the fact that it opens
way to settle the claims of the roads
AGAINST the CoYernmnnt ,u;+lA4 NNN