The Connecticut labor news., 1921-08-05
Proposal That Uncle Sam Give Them Five Hundred Million Out of War F anc c Funds to Be Opposed.
By DONALD RAMSEY

$500, GOO, ,OOO promised them som weeks ago by Secretary of the Treas ury Mellon and at the same time tn roads indebtedness to the govern ment IS to be refunded so it need no be paid for 10 years.
 Instead of taking the money out O the public treasury, the War FinanC Corporation, which was resurreCte' last winter in order to finance tn exportation of farm products, will b. called upon to raise the money anC will be authorized to sell Securltle placed with the government to insure the repayment of the vast sums tha the railroads owe Uncle Sam
 President Harding appeared before a joint session of the Senate anC House last week and urged tho early passage of the necessary legis lation He told the legislators there would be mo added expense, nc added liability, no added tax burden. The President was not entirely frank however.
 The War Finance Corporation
 is as much part of the govern
 ment as is the Treasury Depart
 ment and when the corporation
 raises $5oo,ooo,ooo for the rail-
 roads, it will be compelled to
 either use the credit of the gov
 ernment or to sell securities
 which belong to the government.
 Hard Fight Predicted.
 The President will probably have his way, but not without lively fight in both houses. For example, those who advocated the soldiers bonus will want to know why the War Fi- nance Corporation, if it can raise money so easily, without placing any burden on the people, should not be given a chance to get the sums asked for by the eX-service men.
 The representatives of the farmers will have something to say, too. The President anticipated the attack from the latter group and suggested that the Norris bill which provides for the organization of government controlled corporation with a capital of $Ioo, ,ooo to buy farm products from American farmers and sell them to foreign consumers should be pigeonholed and that the War Fi- nance Corporation should be given another opportunity to help the agrl- culturists.
 The farmers don't like the sugges- ton and they will probably say so on the floor of the House and Senate.
 Reserve "Ineficiency" Claims.
 In his speech to Congress, the President stated that i'll order to se- cure an early payment of the $5oo,- GOO ooo the railroads had agreed tC waive their claims on account of the "inefficiency of labor," but that they had not surrendered any of their right to press that claim in court
 This fully confirms what has here tofore been stated by Labor The railroads contemplate further raids upon the public treasury, For the time being they are satisfied to ac- cept the Presidents plan under which they will have 10 years in which to pay what they owe the government and the government will pay then $500, 900 at once in cash.
 Later on, they can revive their claims on account of the "inefficiency of labor" and they are confident they can compromise them for several hundred millions of dollars.
 The President submitted to Con- gress memorandum prepared by the Director General of Railroads. This which demonstrate that i'll their ef- forts to break up the labor unions the managers have come pretty near wrecking the transportation system of the country Never in history have there been such high percent age of bad order cars and locomo- lives.
 It follows in part:
 "The total number of Federal-con- trolled carriers, including subsidiary companies, was 425. The mileage ot the Federal-controlled roads was 23o,oo9.
 The number of claims on final set tlement filed with the director gen eral up to July IS, 1921, was I84, the aggregate amount claimed being $758,o32,235. The mileage of the roads that have filed their claims az gregate I67,o7o.
 One-Third of Claims Allowed.
 "The amount of claims settled by the director general up to and in cluding July I5, 1921, aggregated $225, 568, ,764 These settlements rep resent some 43 per cent, in number of the claims actually filed. The total amount paid in settlement was $68,- Al ,227.
 The largest single disputed item in final settlement is the claim for under maintenance of way and struc- lures and equipment. The under maintenance claims represent more than 50 per cent. of the total amount of claims filed Included in these claims for undermaintenance is the much discussed claim variously de scribed as "inefficiency of labor" Gin effectiveness of labor" or 'thc diff ference in the cost of applied mater ial as between the test and Fedora control periods" this item represent ing some 70 per cent. or 75 per cent of the total undermaintenanCe claims
 Claims for ineff1ciency of labor
 have not been allowed by the
 railroad administration, not only,
 as contended by the railroad
 administration, because such
 claims are not contemplated by
 the standard contract, but they
 are of a too highly indefinite,
 speculative, and contingent
 character to warrant consdera-
 ton.
 What Carriers Owe Uncle Sam.
 "During the period of Federal con trol there was expended by the rail road administration, on behalf of thu carriers, some $I,I44,ooo, ,ooo in addi tions and betterments, properly chargeable to capital account. Q this sum a excess of $38I ,ooO, ,OoO wa: used in the purchase Of addltlOna equipment, consisting of 100000 boz cars and 2,OoO locomotives, and thu expenditure for this equipment ha been taken care of in equipment trus certificates now held by the railroad