New-York tribune., 1921-09-05
Rail Funding
Bill Held Cure
For Labor Ills
Eugene Meyer Jr. Declares
Roads Would Take On
Men; Supply Industries
Could Put Idle to Work
Aid to General Business
Demand for Ties, Iron, Steel
Would Have Far-Reach-
ing Effect ON Other Trade

Passage of the Townsend -Winslow
Railroad Funding Bill would greatly
minimize the country's unemployment
problem in that git would put mil
lion more men to work." according to a
statement issued yesterday by Eugene
Meyer jr., managing director of the
War Finance Corporation.
He asserted that the financial relief
thus given the railroacs would not only
enable them to employ many more men
directly, but that the increased needs
OF the roads for materials in such case
would indirectly bring about the en-
ployment of great numbers Of men now
idle.
In one portion Of his statement, Mr..
Meyer sounded an optimistic note, de-
claring that "there are indications Of
resumption in general business,
which may bring about, ultimately, a
better industrial condition" More
money for the building interests, to
relieve the housing situation, is an
imperative need, he asserted, but he
found "a distinct tendency toward
easier money conditions" as flavor
able symptom"
Meyers Statement
Mr.. Meyers statement reads as fol-
lows:
Labor Day finds the country con-
fronted by a problem of unemp.oy-
ment unprecedented in magnitude
within the experience of the last quar-
ter of a century. 1t behooves all good
citizens to consider proper steps to
remedy this condition.
"a considerable part of the existing
unemployment is due to the position in
which the railroads find themselves
short of funds and unable to make
their normal purchases and do their
normal repair and equipment work.
employment of million men
would, in my opinion. follow the pas
! sage of the Townsend Wilson funding
bill, according to the testimony which
| offered to the Congressionl COM
mittees considering the measure.
My estimate, l believe, is q conser-
vatlve one. No one III a position Of
even small degree of responsibility vt
such time, whether public or private,
can afford to make false or misleading
statements. therefore made the state
ment concerning the effect Of the pro-
posed legislation with full sense of
respcnsibility for that statement
Not only would the railroads, BY
the passage of the bill, be put in the
position of meeting their unpaid ac-
counts, already past due, but they would
be able to 60 ahead with their main
tenance Of way and repair of-equip-
ment work. This would directly employ
very large number Of men.
Counts on Indirect Labor
"ln addition to this direct labor we
could count on the indirect labor in
volved in producing and transporting
lumber for ties and the iron ard steel
used for maintenance and repairs. Here
also is to be counted the labor in the
mining OF the ore, the transportation
thereof, the mining of the coal and the
manufacturing of the coke to turn the
ore into iron and steel, the labor in the
iron furnaces, in the steel plants and in
the finishing plants.
The employment of all these men
would give them and their families an
enlarged purchasing power, which in
turn would put large additional mum
bers of men to work.
Present indications of a RESUMPTION
in general business" Mr. Meyers said.