The New York herald., 1921-08-01
PLAN QUICK ACTION
TO HELP RAILROADS
Measure to Make S50O,OOO,OO
Available to Have Party
Backing in Senate.
Special Despatch to THE New YORK HERALD
New York Herald Bureau,
Washington, ID. c., July 81.

New York Herald Bureau,
Washington, ID. c., July 81.
Party action is to be taken in the
Senate on the proposal to have $780,
100000 made available to the railroads
through thd War Finance Corporation
There has been a decisive shift in the
earlier programme, which contemplated
a more lesurely consideration of the
measure.
While the bill was first introduced in
the House by Chairman Winslow
(Mass.) of the Interstate Commerce
Committee and later In the Senate by
Senator Townsend (Micn.). the pro-
gramme of the leaders contemplated
Senate action before 1t is taken up In
the House. which just now is preparing
for consideration of tax revision.
Senator Townsend told THE NEW
YORK HERALD to-day that a meeting of
the committee would be called early in
the week, either by himself or by Chair
man Cummns (Iowa). The latter has
been recuperating In Atlantic City,
and 1t is possible that Senator Town
send will be called upon to pilot the bill
through committee and Senate.
Il have introduced the bill and had
It referred to the committee" Senator
Townsend said II have been corre-
spending with Senator Cummins about
II and II may be he will return to Wash
ington. It is agreed. however. that in
any event a meeting OF the committee
will be called soon and IL a majority
agrees. as I think likely, we will report
II to the Senate and ask early consider
alton.
THE President Is anxious. I know, to
have the bill considered and disposed of
in both houses as soon as possible. We
may hold no hearings although this has
not been fully determined.
II believe the measure ought to be
acted upon quickly. for It seems to me
that II viii relieve very embarrassing
situation that exists to-day regarding
the railroads. The Government is going
as far as 1t can without making direct
appropriations to the railroads, in re-
adjusting the situation between the
roads and the Government
we think that in this way these obli-
cations can be floated among the people
without any direct obligation on the
Treasury. 1t stands TO reason that II
we can help the railroad problem 1t will
relieve general business depression in a
very satisfactory manner"
Senator Townsend realizes there will
be hard fight against the bill. but Is
confident OF its ultimate approval by a
substantial majority.
Democratic opposition is manifesting
itself. and In coupled with a demand for
some assurance either from the railroads
or some Government agency first as %
what use will be made OF the money ac-
cruing 10 the roads. and. second. whether
or not It may not afford an opportunity
for rate reductions, both freight and pas
senger.
Senator Smith IS. CO. to-day in
formed THE NEW YORK HERALD that he
intends to stress the desirability OF rate
reductions In connection with the pro-
posed relief measure. and said he may
oppose IL unless some clearer under
standing may be had on the part OF Con-
gress. Without outlining fully how far
he may 20 In opposition. Mr.. Smith IS
insistent that rates ought to be lowered
In the interest OF both the public and the
roads
THE first thing that we should adj
dress ourselves to- Senator Smith said.
would be a thorough understanding as
TO the possibility OF rate reductions. Be-
fore any extensions or advances are
made to the roads. the question arises
What relief will come to the public? In
helping the roads we ought to know
what relief is 10 be reflected In helping
the public. We are on the peak OF the
annual transportation load and also
believe on the break OF a revival of
pusiness Rates IN my JuuRtnent are too
high. and fully believe that lowering
them would contribute as much to re-
vval of business as the lowering OF rates
on rediscount on money"
Senator Smith said he thought early
action ought to be taken. and called at
tention to the statement OF the White
House yesterday regarding the prospec-
tive revival OF business and business ac-
tivity, and to the fact that necessity for
early action on the railroad legislation
was mentioned prominently.
THE White House statement says the
Administration railroad programme con-
templates early and rapid settlement OF
the accounts between the Government
and the roads" said Mr.. Smith. II
take X 70 mean that we are TO consider
the legislation at once, which seems to
me 10 be n wise course"