Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1922-04-29
PAYMENTS DELAYED UNTIL 1928.

DSD' naas BY srs. Of
transportation that it constitutes guaranty to this
railroads" says the Railway Agein editorial in it'
because they read frequently in the
newspapers about the delayed payments being made
from time to time by the Treasury Department ac-
compensation which the government guar
anteed the twenty-sx months OF the Fed
eral control period which also continued by the
TRANSFORMATION act for the six months Immediately
lowing the OF Federal control to allow the
Interstate Commerce Commission time adjust rail-
road the scale OF expenditures established
while the government operating the roads"
This guaranty expired August 81 1920 yet the
made by Secretary OF the Treasury Mellon
TO the Senate Finance Committee and the House Ways
Committee of the prospective receipts and
expenditures Of the Federal predicts that
5000 will still remain be paid TO the railroads
Of the old guarantees during the fiscal year
June 30 1928. because of the payments
to railroads which 1t previously been estimated
would be made In 1922 had been postponed.
During the period of Federal control the government
guaranteed the railroads rental OF approximately /
5000 year but this amount has not all been
paid. A considerable part withheld pending final
settlements with the various companies OF their ac-
counts with the government. including expendi-
lures of the Railroad Administration for capital i'm
provements which charged against the roads The
Na'Aroad Administration is announcing settlements
with various companies almost every week hut tho Sec
Oh the Treasury estimates that 500 900 600 will
.n 70 De PAID by the Railroad Administration dur
ing 'he nscai year 1929 as 500 900 600 n, a.
0u"' Oh 'he SIX months guaranty on which the rail-
roads are still figuring with the Interstate conrooro.
Commission '"''"e'oe
Inc commission in its report estr.., -,
amount OF the six months guaranty at about ,sas
VVoOVo OF which S430520,3o7 had then hear ra,a
ieaVlng an estimated amount still payable 20 .ba CO.
rers OF about slO55o0000 Very little OF this bs. hso
pad since the date Of the report and the es
mate Of the Secretary OF the Treasury apparently is
optimistic as to the for conclusion q, the
complicated process which the commission must 70
through in certifying the amounts due
When the budget submitted to Congress in De-
cemoer it was estimated that the Treasury would have
TO provide sss7oooOOO for payments to railroads dur
ing the present fiscal but partly because of the
unexpected delay in reaching settlements and partly
because the Railroad Administration had derived
s23o0oooo0 in cash by selling notes with which the
railroads had paid for the and locomotives or
dered by Director General McAdoo Mr. MELONS state
Of April IA shows credit s5s 600 600 on
railroad instead estimated expenditure of
ssST0oo.0o0
This would indicate that likely to hear great
deal another year about guaranty to
the railroads. although the only guaranty expired over
year and half ago or course, most people who
talk about guaranty the railroads not refer to
this guaranty. which is still to be paid
they refer the provision in transportation act
which directed the try to so adjust rates
as 20 allow them 6-per cent. return
This provision also expired February 20. 1922.