The New York herald., 1921-07-27

claim of the owners that In spite of
materials and hours OF labor being esti-
mated in proper relations TO similar ex-
penditure In the pre-war test period the
'inefficicncy OF labor still left wide
difference between actual uckeep and the
expenditure made during the Govern
mnt operation.
In order to expedite settlement and
funding an informal understanding,
which Is all that is possible or practical.
has been reached, under which the rail-
way claims based on the inefficiency of
labor are to be waived to hasten COM
plete and final settlements. without sur
render of any rights In court in case
there Is failure to settle.
IL have no doubt that early, final and
satisfactory settlements will be reached,
since the policy of the railway admin
istration already has been effective in
finally settling the accounts of roads
filing claims amounting to $225. .56s. .764,
resulting in the payment to them OF
| s6S. S.141,220.
Agency for Negotiation.
The war now would seem to be clear
to very early adjustment and relief, ex-
cept for the fact that the Railway Ad-
ministration. though possessing assets.
does not command the funds necessary
to meet what will be its admitted obli-
| cations.
There is no thought to ask Congress
for additional funds Perhaps $780,
100000 will be necessary. The Rail-
road Administration has, or will have In
| the progress of funding, ample securi-
ties to meet all requirements If Congress
only will grant the authority to ne
gotiate these securities and provide the
| agency for their negotiation. With this
end in view you are asked to extend the
authority Of the War Finance Corpora
tion so that 1t may purchase these rail-
way funding securities accepted by the
! Director-General of Railroads. No added
| expense no added investment Is re-
quired 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 Government agency
| to use its available funds to purchase
| securities for which Congress already
| has authorized the issue and turn them
into the channels OF finance ready to
| float them.
II can readily believe that so simple
| a remedy will have your prompt sane
| ton. The question Of our obligation
| cannot be raised, the wisdom of afford
the avoidance Of added appropriation or
| liability will appeal to Congress and
the public alike.
."The after war distress Of two great
| and fundamental activities have been
| riyeting the anxious attention of the
country.
] ton of agriculture. the other Is the dis
tress of our railway transportation sys-
7, TEN.
| Obligation to American Farmers.
| pending proposals for relief ana
| their discussion have already brought
| to the attention of Congress the very
promising possibilities Of broadening
| the powers of the War Finance Corpo-
ration for the further relief of agricul-
ture and live stock production. This cor
poration has proved itself so helpful In
| the relief thus far undertaken that
cannot help but believe that its broad
ened powers. as have been proposed to
meet agricultural needs, will enable 1t
wholly to meet the nationwide emer-
gency. This is an impelling moral OBJ
| legation to American farming in all its
larger aspects. and it will be most
| gratifying to have your early sanction.
| 'Tn the case of the railroads there
| Is a moral and contractual obliga-
| ton, and your favorable action Is no
less urgent and will no less appeal to
public approval Railway solvency and
efficiency are essential to our healthful
| Industrial, commercial and agricultural
life. Everything hinges on Transports
| tion.
After necessary and drastic curtail-
ments. after narrowing straits in meet
ing their financial difficulties. the rail-
ways need only this financial aid which
the fulfilment Of our obligations will
bestow to inaugurate their far reaching
revival It's effects will be felt in varied
! Industries and will Danish to a large
degree the depression which. though in
evitable in wars aftermath. we are all
| so anxious to see ended.
IT am appending herewith MEM
oranda concerning the progress of rail-
road liquidation and revealing existing
conditions which Congress will be in
terested to note. while considering the
simple remedy proposed for the relief
of the situation. The information is
submitted by the Director-General Of
Railroads. WARREN G. HARDING"