The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1921-07-28
HARDING URGES
RAILWAY AID
Would Purchase Securities
Up to Half Billion to
Settle with Railways.
MESSAGE TO CONGRESS
President Sees Need of Inme-
date Action to Keen Faith
with the Railways.
(By Associated Press Leased wire)

T "dA AidACG corporation TO purchase
securities, probably up to S500,000, 900,
now in the hands Of the railroad adj
mlnistration, so that the proceeds may
/ be used for settlements with the rail-
ways. This, the president told con-
gress, would open the way to early
adjustment and relief" of the railroads
problem. There was no thought, he
| said, of asking congress for additional
money.
Railway claims, based on the "inefi-
cheney of labor" during the war, the
president said, were to be waived for
the present to hasten settlement with
out surrender of any rights in court.
Although the railways owe the govern
ment large sums, the president said,
the government also owed the railroads
large sums of various accounts.
mo added expense" said the presi-
dent, explaining his request, "no added
investment is required on the part Of
the government; there is no added liza
bility, no added tax budren."
Will Use Available Funds.
ct is merely the grant of authority
necessary to enable most useful and
/ efficient government agency to use it's
available funds to purchase securities
| for which congress already has au-
| thorized the issue, and turn them into
channels of finance ready to float them
"The contract covering operation
provided that the railways should be
returned to their owners in as good
condition as when taken over by the
government, and the transportation
act, recognizing that betterments and
additions belong to capital account
provided that such sums as the railway
companies owed the government for
betterments and new equipment, added
during the period Of government opera
ton, might be refunded. There has
been at no time, any question about
1.-THE justice of funding such indebted
ness to the government. Indeed, it
has been in progress to measurable
degree ever since the. return of the
railroads to their owners. 1t has been
limited, however, TO such cases as
those in which final settlements with
the railroad administration have been
effected. The process is admittedly too
slow to meet the difficult situation
which the owners of the railroads have
been facing, and 1 believe it essential
to restore railway activities and essen
tial to the country's good fortune to
hasten both funding and settlement.
"Quite apart from the large sums
owing to the government which we are
morally and legally bound to fund, the
government admittedly owes the rail
accounts such as compensation, depre-
citation and maintenance.
'The way now would seem to be clear
to very early adjustment and relief,
except for the fact that the railway
administration, though possessing as
sets, does not command the funds nee
essary to meet what will be it's admit
ted obligations.
No More Funds Asked.
'There is no thought to ask congress
for additional funds. Perhaps $780,
100000 will be necessary. The railroad
administration has or will have in the
| progress of funding, ample securities
to meet all requirements if Congress
only will grant the authority to nego-
tiate these securities 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 it may
| purchase these Hallway funding securi-
ties accepted by the director general
e. railroads. No added expense, no
| added investment is required on the
| part of the government; there is no
| added liability, no added tax burden.
1t is merely the grant of authority nee
| essary to enable most useful and eff
cient government agency to use it's
| available funds to purchase securities
/ for which congress already has au-
thorized the issue, and turn them into
! the channels of finance ready to float
! them.
81 can readily believe that so simple
a remedy will have your prompt sane
ton. The, question of our obligations
cannot be raised, the wisdom of afford
ing early relief is not to be doubted
and the avoidance Of added appropria-
ton or liability will appeal to congress
! and the public alike.
! Broaden Powers of Corporation.
/. 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 corporas
/ ton for the further relief Of agricul-
i ture and livestock production. This
/ corporation has proven itself so help
/ full in the relief thus far undertaken
that cannot help but believe that its
| broadaned powers as have been pro-
4 posed, to meet agricultural needs, will
enable it wholly to meet the nation
wide emergency. This is an impelling
moral obligation to American farming
in all its larger aspects and it will be
most gratifying to have your early
sanction.
''In the case of the railroads there is
a moral and a contractual obligation
and your favorable action is no less
urgent and will no less appeal to public
| approval. Railway solvency and eff
4 cheney are essential to our healthful,
industrial, commercial and agricultural
life. Everything hinges on transpor-
tation.
After necessary and drastic curtail-
ments, after narrowing straits in ~ eet-