Evening star., 1923-02-04
i'A|L COST TO u. S.
IS Sl,S0O,0)Q,O00
Director General of Roads
States s4oo, 900, 600 Cash
Will Go to Treasury.
CUT HARD
report Shows Entire Venture Will
Come Within Appropriations
:
Already Made.

I Losses sustained by the govern
nant from wartime operation or
railroads and it's aftermath of earn
ingss guarantees. and damage settle
,nents will total approximately $780,
5000, according to data made available
. .esterday afternoon for the first time in
report by James c. Davis. director
keneral of railroads, transmitted to
Congress by President Harding. Not
ouly does the amount come within
congressional appropriations already
iade, but there will be also a return
. the Treasury of about s400,o0o,0o0
IN cash and railroad securities.
Mr.. Davis estimates are based on
the showing actually made in liqui-
,s.tion of accounts between the gov
,fnment and corporate owners or ~
,"r cent of the railroad mileage
=. lich the government took over.
Most of the settlements yet TO pc
raade arc expected to result IN pay
3cnt to the government OF either
ash or securities.
Total OF Losses.
Accounting in connection with the
'""vernment operation mas gone
through three phases and involved
the Interstate Commerce Commission,
- well as the Railroad Administra-
ton. Losses in direct operation or
ihc roads and in the later settlement
-uf capital investment and other
g aims. as now practically completed
i,y Director General Davis, are SHOWN
Ns~reach a total of $3.50 .0o0;o0o: 10
lhiS is added sum of between Sozo'-
100000 and s600,000,000, which has or
x1l be paid by the commission 10
,hort-line railroads and to class L
q; ;.riers This last amount inciudes
,EEment under the guarantee given
f.,e roads by Congress OF earnings
curing the six months of 1879 Jus!
;erter the government relinquiSheu
III. properties.
y remarkable scaling down in claims
Originally made by the roads against
tr,e government is shown by MT.
savis' report. which marks the pc
.Snninc Of the end of the entire VEN
t.,re. To date. the roads have de-
ynanded s95o6f2,06S. grounds OF
t-ndermaintenance, damages, loss OF
isventory and for other reasons Up
20 December 81 final adjustment had
iqen made with corporations, which
sought s731. .921.S1t of that total, the
,nvernment having paid out net
:1nount of only s171.S1o,541. Mr..
letvis expects the balance of unad-
;ssted claims. amounting to s22O,-
rpa253 to be closed out by October,
xithout any additional expenditure.
OnfS One Suit Filed.
"
-. only one road has so far taken
-, director generals decision into
court, it was added. One factor point
"A out by Mr.. Davis as facilitating
t,e settlements has been the ability
"t the Railroad Administration to
1y cash to carriers willing to accept
award. Government funds for
ase operations, in part. were de-
wed from sale Of equipment trust
sscurities amounting to s2I4.00O,0o0.
i,icf were left on the director gen
r;lI's hands after the period of op-
ration, but subsequently became de-
Table to private investors.
II believe ii may be confidently
ccdicted," Mr.. Davis report stated,
.hat there will be not to exceed a
aIf dozen carriers unable to agree
it'll the government in arriving at
aal adjustment. and there may not
that number. From the
"aancial showing it is quite evident
Iat no further appropriations will be
Luuired to complete this liquidation
/ every particular. and it may be
nticipated with some confidence that
ter all liabilities of the government
: whatsoever nature arising out of
sderal control have been liquidated,
te Railroad Administration can return
the Treasury in collectable obli-
ations of solvent companies and un-
Kpended appropriations an amount
sgregating about $500, 100000.
Maintenance of the Railroad Ad
tnistration organization which has
lecked the railroad claims and ac-
auntings in the settlement. cost the
overnment last year in pay roll ex-
enditures S3,11O,0c0." Mr.. Davis re-
.arked, "but has resulted in the saw
tg of many hundreds of millions of
ollars to the government" The
Imber of it's employees. he added, can
ow be rapidly reduced.