South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-07-23
HARDING WILL
PRESENT PLAN
TO CONGRESS
To Offer Proposal for Fund
ing Debts to Government
and Paying Demands.
ACCEDE To REQUES T
Basis for Settlement Reached
When Carriers Waive In
efficiency Claim.
By Associated Press :

By Associated Press:
WASHINGTON. July 22- Pres's
Harding Will submit to congress nexe
Tuesday the administration plan for
funding the debts Of the railroads 70
the government and meeting without
additional appropriations the claims
Of the roads growing OUT OF federal
control.
An understanding has been reach>
ed between the roads and the ad-
ministration, = was learned Friday,
TO facilitate speedy settlement Of thu
/ claims Of the carriers without any
new arrangement or modification OF
the war time contracts with the gov
eminent. Authority 10 fund the
debts OF the roads. il was explained.
| is given the president by the trans
| pOrtation act, but IL 3 deemed advis-
able TO acquaint the congress with
/ the methods under consideration.
Additional Authority.
Use Of the war finance corporation
as the agency affecting through the
| railroad administration. the settle
ment Of the governments financial
relations has been suggested, as wei!
as other means, but additional au-
thority from congress would be re-
quiTed 10 permit the corporation 70
TAXI part in the contemplated trans
actions.
After three weeks Of negotiations.
the basis upon which the railroad
claims would be quickly met. was
said TO have been reached through
the roads acceding 20 the adminis-
trauon's request TO waive claims for
"inefficiency Of labor IN work done
on the lines by the government De-
fore returning them 10 private con-
troll In waving such claims, how
ever, It was declared the right OF any
Of the roads to sue on them in the
courts would not be affected IN the
event Of a failure Of Sc usment
The administration position dur
ing the negotiations with The car
riers was declared 10 have been that
the roads ought 10 facilitate settle
ment without considering what the
| governm eEt considered as extrava-
CANT claims for efficiency OF labor.
Only these claims, IL was asserted.
were in dispute. and so far the rail-
road administration has refused,
| to make any adjustment On tha. ba-
sis.
On the other hand. the admins
tration felt. II was asserted, that tho
! government has not been fair 10 the
railroads and should give them what
was rightfully theirs. At the same
time it was desirable 20 facilitate
settlement OF the railroad problem
which would enable the closing OF
the railroad administration. an ex-
! pensive government agency.
Sought Understanding.
! The administration and the rail-
roads, II was maintained. had sought
a frank understanding. which By
laying aside elaborate claims for in
efficiency Of labor. would speed Up
the settlement desired. While al
railroads, particularly the short
lines, were not represented IN the
association OF railway executives
with whom negotiations were con-
Quoted, II was believed that the un-
Outstanding reached would meet
with the approval OF al the car
riers.
Debts OF the roads 20 the govern-
ment have been generally estimated
st about five hundred million dol
lars, while their claims have been
put at various figures. Director
! General OF Railroads Davis In a re-
cent estimate 10 congress declared
that while all the claims were not
In. Il was thought the total would
be one billion. two bundled and fifty
million dollars which II settled on
the basis Of about forty per cent as
heretofore. 'woUld approximate five
hundred million dollars