Evening star., 1924-01-04
|99 PER CENT CLAIMS
OF RAILROADS CLOSED
Total Cost Of Taking Over Lines
by Government in War Esti-
mated at $1,69e, ,000. 900.

All claims arising out of govern
ment war time railroad control over
80 per cent Of the railroad mileage
Davis. director general of railroads.
reported today in a communication
transmitted to Congress by President
Coolidge.
The last cent Of direct government
expenditure was paid out before jan
uary 1, Mr.. Davis said. and from now
the government from the railroad Sc
curities held in the. Treasury. evidenc-
ing government investment made in
the roads during and after control.
He calculated that the total cost of
the taking over of the roads was
81, $50, ,000, 900.
The net result Of the settlement in
vestigations made during the last three
years, Mr.. Davis report continued, had
been to reduce the amount Of expendi-
pected to be called upon to meet as a
result of railroad control.
When the railroads were turned back
to their owners, claims filed against the
government amounted to $1.014,3s7.-
600. On December 81. Mr.. Davis had
adjusted s763,106, 900 OF these claims,
by the method Of paying in cash to
creditor roads $242,s2s.00o, but he had
also demanded and received in cash
and interest bearing obligations from
the same roads $1s2,s46,00o.
Tho actual net COST to the govern.
mont In the settlement Of this total
Of damage and compensation claim,
from the railroads was f4s,ss2, 900, ol
6.5 per cent Of the face value Of the
claims as presented.
There arc only hve railroad com
panies which have claims outstand.
Ing, and three Of these are In the
ha ands Of receivers. So far the rail.
road. Administration has avoided
litigation, but there will be a mum.
Der OF court actions arising from
the remaining claims.
Balance In Tfeasury.
There Is In the Treasury $685..
s23.s66 OF unexpended appropriation,
made for the railroad administrator
liquidations, Mr.. Davis said, and In
addition $S0S.237.oo Of railroad se.
curities paying 6 per cent and OF
par cash market value.
There can be stated with reason
able accuracy" the report said, "the
cost to the. government growing on,
of federal control and the six
months guaranty period Immediately
following the end Of federal control
which is az follows:
Congress appropriated to pay cost
Of operation and to provide funds
for liquidation q total Of $1,75o. .o00,-
600. The expenditure in payment OF
judgments, decreeA awards and .rep-
arations under Jurisdiction of the
Interstate Commerce Commission ID
estimated at $4o,0o0.oo0. This makes
a total direct appropriation by Con.
gress for the Railroad Administers.
ton Of 31.7s0.oo0.00o.
short Line DeAclts.
ssThs Railroad Administration should
return to the Treasury in unexpected
appropriations, cash and definite oh.
LEGATIONS Of the carriers in round fie
ures $646,o00,000, which leaves the
cost of federal control and liquidation
Of liabilities At $1,146, coo, ,oe0.
.-To this should be added the amour,
Of claims arising under the guaranty
period. being the six months irnme.
diately following federal control
which the Interstate Commerce Com.
mission estimates to cost $636, 200, 900.
There ID also 2 commerce commits.
sion estimate OF $16,000,o00 for REIN,
bursements Of short line railroad de.
icits, making the hnal total cost 4
the government Of twehty-six months
OF federalscontrol and six months oi
guaranty OF earnings. $1.6s6, ,oo0. .0Q0
. 3 s