The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-07-26
PRESIDENT
WOULD FUND
ROAD DEBTS
Message Favors Buying
$500, 900, 900 in Bonds
Railways Hold.

Washington, July 26.-President
Harding, in a special message to
congress today, asked it to extend
the authority of the war finance
corporation to purchase securities,
probably up to $500, 100000, now in
the hands of the railroad admins
tration, so that the proceeds may
be used for settlements with the
railways.
This, the president told congress,
would open the way TO "early ad-
justment and relief of the railroad
problem. There was no thought,
he said, of asking congress for ad-
ditional money.
Railway claims, based on the
"ineffi cheney of labor" during the
war, the president said, were TO be
waived for the present to hasten
settlement without rurrender of
any rights in court Although the
railways owe the government large
sums, the president said, the gov
ernment also owed the railroads
large sums on various accounts.
NO added expense" said the
president explaining his request,
mo 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 author
ity necessary to enable most use
full and efficient government agency
ia use its available funds to pur-
chase securities for which congress
already has authorized the issue,
and turn them into channels of f.
nance 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 ard the trans
portation act, recognizing that bet
terments and additions belong 10
capital account, provided that such
sums as the railway companies
owed the government for better
ment and near equipment, added
during the period of government
operation, might be refunded
There has been at no time, any
question about the Justice of fund
ing such Indebtedness to the gov
ernment. indeed, it has been pro-
crossing to a measurable degree
ever since the return of the rail-
roads to their owners. 1t has been
Limited, however, to such cases as
this in which final settlements
with the railway administration
have been eected. The process is
admittedly too slow to meet the
difficult situation which the own
ers of the railroads have been
facing, and 1 believe it essential
IN restore railway activities and
essential to the country's good for
tune to hasten both funding and
settlement.
Owe Large Sums.
quite apart from the large sums
owing to the government, Whlcn
we are morally and legally bound
tc fund, the government admitted
lv owes the railway companies
large sums On various accounts
such as compensation, depreciation
and maintenance.
1.-THE way now would seem to
he clear to very early adjustment
and relief, except for the fact that
the railway administration, tnouSn
possessing assets, does not com
mand the funds necessary to meet
what will be its admitted obi1ga-
tionS.
There is no thought to ask con-
rress for additional funds. Perhaps
$500. 900, 900 will be necessary. The
railroad administration has, or will
have in the progress Of funding,
ample securities to meet all re-
ouirements if congress only will
grant the authority to negotiate
those securities and provide the
agency for their negotiations.
with this end in view you are
asked to extend the authority of the
war finance corporation so that it
NAV purchase these railway fund