South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-07-27

comm lFsl1u but Chairman Cummtns.
who Isl ln iu-health. was cut Of the
city, ana when the railroad legisla-
t.ol 81 ould bee taken UP was ia doubt.
Leaders. however. expected action
Within the next fortnight. Several
senators opposing any semblance Of
further government advances u the
carriers ste-e0 privately that they
would ignj ehs legislation.
Mcclure Approved.
Son. Kellogg said that the bill
drafted by Sec'y Hoover and Direc-
tor Never had the approval OF the
treasury department IL would au-
tEorize eztentiOus OF credits 20 pro-
dacers or their associations export
ers. and also TO bankers for agricul-
tural export purposes. Besides. the
finance corporations capital Of
$500. O00 000-A revolving fund-it
would be authorized 20 issue one
billion dollars in bonds. Champions
Of the Norris bill continued their
fight in its behalf
The amendment would eliminate
provisions said 20 give the proposed
corporation power 20 buy and sell
farm products. The committee also
Teduced the bond issue authorization
from one billion dollars 20 FIVE humid
red million dollars. Sen Norris. re-
publican Nebraska. cridsizcd the
manner I'm which the kellogg sUbsti-
tute had been brought forward. He
charged that It was prepared 'se-
cretly'' and that Sen. Kellogg had
FadvaEce information" denied TO
committee members and other senat-
ors until Il was read In the senate
Tuesday.
Republican leaders generally pre-
dicted that the Kellogg measure
would be substituted for Norris BIZ,
despite disposition Of committee
members and others 90 stand by the
Norris plan. The committee amend
ment and the Kellogg and other sub
stitutes are to be taken up IN the
senate Wednesday with dispo.al Of
the legislation this week predicted.
WASHINGTON. July 26.-The
text Of Pres't Harding's message TO
Congress follows:
To the senate and the house OF
AGDFeel NLdL4Nt3s
t. is necessary 10 call the attention
OF congress to the obligations Of the
government to the railroads. and ask
your cooperation in order to enable
the government to discharge these
obligations. There is nothing new
about them. but only recently has
there come an understanding which
seems wen 10 justify a sincere en-
deavor 90 effect an early settlement.
these obligations already have been
Recognized by the congress. IN the
passage Of the transportation act re-
storing the railroads to their owners
but previous recognition was made
IN the contract under which the
railroads were operated by the gov
ernment for the period Of the world
war.
The contract covering operation
provided that the railways should be
returned TO their owners in as good
condition "a when taken over by the
government, and the transportation
act recognizing that settlements and
ccndidons belong to capital accounts
provided that such funds as the rail-
for betterments and new equipment
added during the period OF govern
ment operation might be funded
There has been at no time any ques-
tion about the justice Of funding
such indebtedness TO the govern
ment. Indeed. Il has been IN pro
gress TO O measurable degree ever
since the return OF the railroads &c
their owners. It has been limited
however, 10 such cases as those In
which final settlements with th'
railway administrations have beer
effected.
Restore Rail Activities.
The process is admittedly too slow
20 meet the difficult situation which
the owners of the railroads have
been facing and I believe it essentia
TO restore railway activities. and es
senual to the countrys good fortune
TO hasten both funding and settle.
ment.
Quite apart from the large sum.
owing TO the government which We
are morally and legally bound q
fund, the government admittedly
owes the railway companies ls -
sums on those accounts, such a.
compensation, depreciation a n
maintenance. There has been /;
syide difference IN opinion relating
20 the amount the government owes
due IN the main 90 the claim Of the
owners that in spite of material
and hours of Labor being estimated
in proper relations 60 similar expen
diture in the pre-war test period. tn,
'iueficieucy Of labor" still left
WIDE difference between actual up
keep and the expenditure made dur
ing The government operation.
In order 20 expedite settlement
and funding. AN informal under
sandiue. which is an that is pos
siblc or practical, has been reached
under which the railway claims
based on the "lncmciency Of labor
are 90 Dee waived 90 hasten complete
and final settlements. without sur
render az amy riEh.s IN court, IL
case there is failure 90 settle
bsVc no doubt rhar early, final anS
Satisfactory settlements Will b,
reached. since the policy Of the rail
way administration already has beer
effective .u finally settling the ac
couu-s OF roads ulnE claim.
amounting to S225.56S,764. resultiB:
81 the paymen TO them OF $6S.14I.
22Z.
Seek Authority.
The way now would seem 20 b'
CLEAR 10 very early adjustment and
relief excep, for The fact that tn,
railway administration. through pos
seszng assets. does not command
the funds necessary 20 meet wiki
Us admitted obligations There
10 Thought to ask congress for ad