The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-26
The Presidents Message

washington, July 26-President Hard
ipg's message to congress today was as
follows:
TO the Senate ana House Of Represen-
tatives:
1t is necessary to call the attention OF
congress to the obligatlons 81 tnS sgsttiL an
in order to enable the government to dis
charge these obligations. There is notn1ng
new about them, but only recently mas
there come an understanding which ms
well to Justify a sincere endeavor to eff
feet an early settlement THESE opngatons
gress In the passage of the transportation
act restoring the railroads to their owners,
but previous recognition was made in the
contract under which the railroads were
operated by the government Tor the perlod
of the war.
vided that the railways should be re-
turned to their owners in as good condition
as when taken over by the government
and the transportation act, recognizing
that betterments and additions belonged
to capital accounts, provided that snch
sums as the railroad companies owed the
government for betterments and new equip
ment added during the period OF govern
ment operation, might be funded There
the justice OF funding such indebtedness to
the government. believe It essential
to the country's good fortune to hasten
both funding and settlement.
Govt Owes Railroads.
Quite apart from the large sums owing
to the government, which we are morally
and legally bound to fund, the govern
ment admittedly owes the railway com
panies large sums on various accounts
maintenance. There has been wide diff.
ference of opinion relating to the amount
the government owes, due in the main to
materials and hours of labor being est-
mated in proper relations to similar ex-
peDditure in the pre-war test period the
difference between actual upkeep and the
expenditure made during government oper-
alton.
In order to expedite settlement ana
funding an informal understanding which
is all that is possible or practical has been
based on the inefficiency Of labor are to
be waived to hasten complete and final
settlements without surrender Of any
settle. ! have no doubt that early, final
and satisfactory settlement will be reached
tration already has been effective in finally
settling the accounts Of railroads filing
claims amounting to $225, 5es.764 resulting
in the payment of them of $6S. IA, 222.
No Additional Funds Added.
The way now would seem to be clear to
very early adjustment and relief. except
for the fact that the railway administra'
ton, tho possessing assets, does not COM
mand its funds necessary to meet what
will be its admitted obligations.
There Is no thought to ask congreks for
would be necessary. The railroad admin.
istration has, or viii have in the process
OF funding, ample securities to meet all
the authority to negotiate these securities
and provide the agency for their negotia-
with this end in view you are asked to
extend the authority of the war finance
corporation so that it may purchase these
railway funding securities accepted by the
director general Of railroads. No added ex-
pense, 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 necessary to
enable most useful and efficient govern
ment agency to use its available funds to
purchase securities for which congress al
ready has authorized the issue and turn
them into the channels of finance ready to
float them.
I can readily believe that so simple
remedy will have your prompt sanction.
To Relieve Agriculture.
The after war distresses Of two great
ana fundamental activities have been rfyet-
ing the anxious attention of the country.
One is the distress of our railway trans
portatfon system
discussion have already brought to the at
tention of congress the very promising
possibilities of broadening the powers OF
the war finance corporation for the fur
Their relief of agriculture and livestock pro
duction; This corporation has proven it,
taken that cannot help but believe that
its broadened powers as have been pro-
posed, to meet agricultural needs. will en-
able 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 crafty
ing to have your early sanction.
In the case Of the railroads. there is n
moral and contractural obligation and
your favorable action is no less urgent and
will no less appeal to public approval.
Railway solvency and efficiency are es
sential to our healthful industrial. com
mercial and agricultural life. Everything
hinges on transportation.
Effects Will Be Felt.
After necessary and drastic curtail.
ments, after narrowing straits in meeting
their financial difficulties, the railways
need only this financial aid which the
fulfillment of our obligations will bestow.
to inaugurate their far reaching revival.
Its effects will be felt in varied Industries
and will Danish to large degree the de-
preston which, tho inevitable in wars
aftermath, we are all so anxious to see
ended.
1 am appending herewith memoranda
concerning the progress OF railroad liquida-
ton and revealing existing conditions
which congress will be interested to know,
while considering the simple remedy pro-
posed for the relief of the situation.
The information is submitted by the Di-
rector General of the Railroads: