The St. Mary banner., 1921-07-30
RAILWAYS TO Get
HUGE sum SOON
Acceptance Of Harding $
Plan by Roads Assures
Action.

ShlngtOn.-Off1Clal announcement
has been made that the railroads haf
acceded to the request of the admins
tratiOn that they waive their demands
for compensation for alleged ineffic
iency OF labor during the period of fed
eral operation Of the railroads will
make possible speedy settlement and
the payment Of between $500, 600 0O0
and S5O0,O0O,000 in cash to the car.
riers.
Enabling legislation to carry out the
program of the administration forum.
lated in conferences between represen.
tatives of the government and the rail.
roads Will be recommended by Presi-
dent Harding in communication to
congress next Tuesday Bills are ex-
| pected TO be offered in both branches
of congress designed to give legal sane
ton to the plan decided upon A direct
appropriation will not be requested. it
is understood, but authority will be
asked whereby the government will
raise the funds necessary to effect the
settlements with the railroads.
To Fund Railway Indebte dness.
Although officials declined to discuss
the nature of the recommendation
which will be submitted to congress.
the plan that has been under consid-
GRAFTON contemplates the use of the
war finance corporation as an agency
to advance funds to the railroad ad-
ministration on securities given to
the government by the railroads.
The government, it is understood.
will fund the indebtedness of the rail-
roads to it because of capital expendi-
lures made during federal control.
This indebtedness is estimated rough
ly at between $7OO,000,O0O and $780,
900, ,000
Director General Davis of the rail-
road administration recently estimated
that the claims of the railroads against
the government would aggregate ap-
proximately $1,25O 100000. The gov
ernment has settled with 40 or so !
roads on basis of about 40 per Gems
OF the face of these claims. If the re-
claims are settled on the basis |
of those settled to date, roughly the
railroads will get around half-biIlion
dollars.
S25.OOo,oOo on Guaranty.
That will be for the period of fed
eral control. The government still
owes the railroads about $25O,0O0,OO0
On the guaranty for the six months af-
.er federal operation.
The government has proceeded upon
he assumption, however, that to facili-
ate the settlement of the claims the
'ailroads should not press for compen-
'ation for alleged inefficiency of labor
Turing the federal control period, be-
'ause to determine allowances for in
efficiency of labor would be almost
N impossible task. 1t was the belief
II government officials that the gov
could not go into fine analy-
Is as to the inefficiency of labor and 9
hat adherence to that claim by the /
ailroads would simply defer final set ,
lements for an indefinite period. {
There has never been a dispute as
large sums that are due the rail- |.
Dads. The only hitch was the rail- :
Dads demands for allowances for al ,
eyed inefficiency of labor For ex- 2
mple. carrier might make a total G
lain of s10,000,00O of which $4,000 II
DO was based on the ground that the {
lbor expended in maintenance was L
OF efficient as it was in the period a
receding federal operation. {