The Waterbury Democrat., 1931-12-23

employees are now on part time. 6. They are about to put through 10 per cent wage cut which will save $200,000,0 0,000.
 6. Many roads have ceased to buy new equipment.
 2. They have just agreed to pool proceeds from rate increases granted by the interstate commerce commission, which will provide an estimated $100,000,000 for loans to weaker roads.
 8. Because of legal require. ments, probably two-thirds of ex- isting railroad securities are no longer eligible to be purchased by life insurance companies, savings banks, etc. This chokes off the big source of credit for the rail- roads. They are left to pay un- bearable interest rates elsewhere, or get special help.
 Roads need money for maturing bond and equipment trust issues in the coming year. Only two have sinkings funds to meet them. They need to make new loans to buy equipment or to finance opera tions, for they canont simply stop operating when profits cease. It cannot raise its prices as an ordin- ary business can.
 The railroads recently asked the Interstate commerce commission for 15 per cent freight rate increase. This was denied and in It's place roads were allowed to increase rates on some articles provided the proceeds were pooled for help ing weaker lines.
 Iata thia aitnatfAn rnnnraaa ta now about to bring the reconstruc- ton finance corporation. It's purpose is to lend money where other avenues of credit are closed. Congress may change the pending plan to give the interstate com merce commission authority to pass on all railroad loans as precau- tionary measure.
 Some extreme members, like Senator Blaine, repn, Wis, take the view that the railroads are econ- omically doomed by the automo- bile, truck, pipeline and waterway to partial degree as were the stage coaches and canals. Majority opinion is that the roads must ad- just themselves to these forms of competition and possibly retire from short haul traffic. but that they will remain indefinitely as as long- haul arteries and therefore must be maintained through this crisis until reviving business brings in self-sustaining revenues again.
 The senate banking and cur rency sub- b-committee, which has the finance corporation bill in charge, decided last night to re-draft the measure to line with several amendments which have been de- veloped in a week of hearings. But the bill in it's new form is to be ready for presentation when con- gross meets January 4.
 The subcommittee Is not yet convinced that 1t should accept the advice of Melvin A. Traylor, Chi cago, and other bankers to make the relief extended by the bill available for liquidation of closed banks. But bankers gave the com mittee notice that as soon as the finance corporation Is created the privately organized national credit corporation, sponsored last autumn by Mir Hoover, would cease to function.
 Members of the subcommittee already have decided to make loans to railroads conditional up- on approval by the interstate com merce commission.
 If enactment of the bill is ma terially delayed, Senator Couzens, repn. Mich, intends to propose im- mediate rail relief by re-enactment of a section of the 1920 transpor- tation act, which would enable the roads to borrow directly from the