The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-07-26
President Advocates Invest
ing Authority in Finance
Body to Purchase the
Securities Now Held
WOULD MEAN NO
ADDED LIABILITY
RAILWAY CLAIMS LABOR INEFFI.
~ Cheney" WOULD BE WAIVED;
f PRESIDENT URGES INCREASE
N CREDIT FOR AGRICULTURE

2. Washington, July 2e. - President
Harding sent a message to congress
today asking legislation authorizing
the war finance corporation to handle
Funding of railroad Indebtedness and
TO increase credit for financing agri-
culture exports
That there was moral obligations
Upon the government to aid in both
respects was stated by the president,
who commended the war finance cor
poration as an agency Of great value
in restoring economic conditions.
Prompt action was requested but the
Presidents veto did not ask that both
features be contained in one bill.
Republican leaders therefore, adopt.
ed the plan Of dealing with the rail-
road and agricultural questions in
separate measures. Senator Kellogg,
Republican, Minnesota, introduced a
bill, drafted by Secretary Hoover of
the department Of commerce, and
4 Chairman Meyer of the war finance
corporation, extending the powers Of
the war finance corporation to agricul.
tural export financing. 1t also would
4 tncrease the corporations revolving
credit fund from five hundred 1nillisl
to one billion dollars.
The Kellogg bill was offered as a
substitute for the pending Norris bill
TO create new government export fl
nancing corporation with one hundred
million dollars capital. Provisions deal
ing with railroad funding were strick-
en- from the Hoover-Meyer draft before
It was presented and Republican lead
ers planned to consider later and sep
arately the presidents recommenda'
tons that the war finance corpora
tion take over railroad funding
Pave Way TO Relief
f Washington, July &c. - President
Harding in a special message TO con-
gress today asked it TO extend the
Euthority Of the war finance corpor.
'Fation to purchase securities, probably
up to $500, 100000 now in the hands
Of the railroad administration so that
the proceeds may be used for settle
ment with the railways This, the
Apre sident told congress, would open
the way TO early adjustment and re-
\ lief OF the railroad problem There
was no thought, he said of asking
congress for additional money.
Railway claims, based on the "in-
Efficiency of labor" during the war
the president said were to be waived
for the present TO hasten settlement
without surrender Of any rights in
court. Although the railways owe the
government large sums, the president
said, the government also owed the
railroads large sums on various ac-
counts.
No added expense" said the presi-
dent, explaining his request, lis re-
CURED 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 &c
use its svailaole funds to purchase Sc.
curities for which congress already has
authorized the issue, and turn them
into channels OF finance ready &
float them.
Funding Is Justifiable
The contract covering operation
provided that the railways should b,
returned TO their owners in as goot
condition as when taken over by tn,
government and the transportation act
recognizing that betterments and ad
dtions belong to the capital account
provides that such sums as the rail
companies owed the government FOL
betterments aud newer equipment, ad
operation might be refunded. Their
has been at no time any question abou
the justice OF funding such indebted
ness TO the government. Indeed. 4
las been in progress to a measurable
degree ever since the return OF tn,
railroads 10 their owners, IL has beef
limited however, 10 such cases as thos'
In which final settlements as thos'
with the railroad administration hav,
been effected The process is ADMITTEDLY
teo slow to meet the difficult situa
ton which the owners OF the railroa,
have been facing and believe /
essential to restore railroad activitie
and essential to the country's goo,
fortune TO hasten both funding an,
settlement Quite apart from the biI
sums owing to the government, whicl
We are morally and legally bound &
fund. the government admittedly owe
The railway companies large sums oi
various accounts such as compensa
ton, depreciation and maintenance.
"The way now would be clear &
very early adjustment and relief. es
cept fer the fact that the railwa.
administration, though possessing as
sets, does not command the funds ne
cessary TO meet what will be its ad
misted obligations.
- No Additional Funds
There Is no thought TO ask con
ervss for additional funds. Perhap