Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-28
HARDING ASKS CONGRESS :
TOADROADSANDF FARMERS

Tie IdllIOdAS anu
Senator Cummins, Iowa, charm
of the interstate commerce cOknn
tee, was summoneel 80 Washing
for a conference.
There is a group in the sem
headed by Senator La Toilette, W
is bitterly hostile to any ARA
ments which even appear to b(
the advantage Of railroads. Their
little doubt, it was learned,
members of this group intend
make the opening Of the transpo
ton question their opportunity
an assault on the governme
course.
Text of Message
The text of President Hardi
message to congress on Tuesday
! lows:
To the senate and house of i
resentatives:
1t is necessary to call the att
ton of congress to the obligati
of the government to the railroa
ask your cooperation in order
enable the government to dischai
these obligations. There is nothi
new about them, but only recen
has there come an Understandable
which seems we'll to justify q, ST
cere endeavor to effect an early Sc
face the railroads if their Gebt
the government is not funded, as
will force them to go into a dis
turbed market for the money witt
which to make improvements and
carry on their transportation duties
the statement said.
1T is in the public interest ,+hs
they should be able to .perforn suc-
cesstully the duty of traasporta.
ton" the statement declared.
1T Is even more vital t6 the pub-I
lie than to the carriers. that theI
carriers should succeed in Securing
the money necessary to successful
performance of their duties.
=, If the government refuses to fund
THIS Indebtedness which it created
Tor the CARRIERS and for which the
transportation act expressly provided
ana II IN addition to their large CAPT.
tai requirements for other purposes
IL Is necessary for them to borrow
also the amount they owe the gov-
eminent for additions and betterx
ments. their problems and the pub
llc's problems in respect to tram
Portatl2n Will @ enormously q
7 Text of Message
The text of President Hardi
message to congress follows:
TO the senate and house Of
It is necessary to call the
ton of congress to the oblie
Of the government to the raj
ask your cooperation in Of q
enable the government to dis
these obligations. There is
new about them, but only re
has there come. an understa
which seems we'll to justify
cere endeavor to effect an earl
| Element. These obligations
have been recognized by the Cd
in the passage Of the transpoI
act restoring the railroads Z
owners, but previous recogniti
made in the contract under
the railroads were operated b
, government for the period o;
world war.
The contract covering opel
provided that the railways 81
be returned to their owners
good condition as when taken
by the government and the
portation act, recognizing that
terments and additions belon
capital accounts provided that
funds Of the railway companies
the government for betterments
new equipment, added during thu
Rod Of government operation nj
be funded. There has been at
time any question about the just
of funding surh Indebtedness to
government. Indeed, 1t has been
progress to a measurable degree ever
since the return of the railroa Is to I
their owners. 1t has been limited,
however t. such cases as those in
which finnt cntf1nrnonta with the
railway administrations have been
effected.
Slow Process
The process is admittedly too slow
to meet the difficult situation which
the owners of the railroads have
been facing, and believe 1t essentlai
to restore railway activities and es-
Sential to the country'S good for.
tune to hasten both funding and set
Element.
Quite apart from the large amount
owing to the government which we
fund, the government admittedly
owes the railway companies large
sums on those accounts, such as
compensation, depreciation and main
tenance. There has been wide dlf-
ference in opinion relating to the
the main to the claim Of the owners
that in spite Of materials and hours
of labor being estimated in proper
relations to similar expenditure IN
the pre-War test period. The "ineffl-
cheney of labor still left wide idf--
ference between actual upkeep ana
the expenditure made during the
government operation.
In order to expedite settlement ana
funding an informal understandings
which is all that is possible or prac-
tical. has been reached, under which
the railway claims based on the in
efficiency Of labor" are to be waived
to hasten complete and final settle
ments, without surrender OF any
rights in court in case there is IAN
IRE TO settle. / have no doubt that
early, final and satisfactory settle
ments will be reached, since the pol
lev of the railway administrator
already has been effective in finally
settling the accounts OF ROADS nlns
claims amounting to $225, 568,764, re-
sulting in the payment to them Oh
$68, 151,222. -
The way now would seem to be
clear to very early adjustment ana
relief except for the fact that the
railway administration, though pos
sessing assets, does not command the
funds necessary to meet Wnat Will
be it's admitted obligations:
No Additional Funds
"There is no thought to ask con
gress for additional funds. Perhaps
$500, 100000 Will be necessary. III
railroad administration has, or Will
have in the progress of funding, am
pie securities to meet all require
ments if congress will only grant the
authority to negotiate these securi-
ties and provide the agency for their
negotiation.
with this end in view you are
asked to extend the authority OF the
War Finance corporation so that 1t
NAV purchase these railway funding
expense, no added investment is re-
0uired on the part of the govern
ment, there is re added liability, no
~dded tax burden 1t is merely the
grant 9f authority necessary to CO.
able a most useful and efficient gov
eminent agency to use its available
funds to purchase securities for
which congress already has author
lied the issue, and turn them into
The channels of finance ready to