Evening star., 1932-09-17
RIG. GRANTS LOAN
FOR RAIL CUTOFF
$3,850,000 Project Will
Slash Distance to Pacific
in Colorado.
By the Associated Press.

By the Associated Press.
The Reconstruction Finance Corpo-
ration announced today 1t had approved
a loan Of $3.850,000 to the Denver &,
Rio Grande Western Railroad Co., to be
used in constructing the 40-mile Dot
sero CUTOFF.
This was the first railroad loan the
corporation has made public. Hereto
fore these loans have been announced
only at the Interstate Commerce Com
mission, which must approve them.
The Interstate Commerce Commis-
sion last week approved a loan of
$3,550,0 900 to the Denver g. Rio Grande
for construction of the cutoff. but to-
days announcement showed 100000
had been added to that sum to enable
the railroad to pay interest during the
period the line will be under construc-
tion.
ia Miles to Be Saved.
Construction of the cutoff which
connects the Denver & Rio Grande
Western with the Denver & Salt Lake
Railway will reduce the distance from
Denver, Colo, to the Pacific Coast by
l74 miles. Construction Is expected to
take from 18 months to two years and
to give employment to between 1,00o
and $500 men.
The corporation estimated approx.
mately $2,500,000 Of the amount will 60
into payroll.
Appeals from three more States fol-
funds for combating destitution today
were before the corporation, which yes
terday approved loans to two other
States.
Meanwhile, announcement was made
of the appointment of M. E. Hay, for
mer Governor Of Washington, as presl'
dent and chairman of the board Of d.
rectors of the Twelfth District Regiona
Agricultural Credit Corporation.
Representatives of Missouri. Ken
tucky and Florida outlined their reliel
needs at the corporations Offices yes
terday while loans from the fund FOL
self -liouidating construction projects
were sought for the San Francisco
oakland Bridge and the Chicago sani-
tary district.
Loans of s502,500 to Arkansas and
$500 900 to Montana brought to $21,'
1853 ,O99 the amount the corporation ha.
allocated from its total emergency re-
lief funds of S300,000,000.
Million Originally Asked.
Arkansas had originally asked $1,000
600. Drought figured extensively in tht
relief needs of both States, although
some industrial sections are involved
In Eastern Arkansas, the corporation
was told, almost half the population L
destitute due to the 1927 flood and the
1880 drought, which bankrupted many
planters.
Failure Of the largest bank in thu
State, with resultant loss OF public
funds. also was mentioned.
The Montana loan is to carry on re-
lief work in seven counties. described
as having suffered heavily from repeat
ed drouths. In three other counties un-
employment was noted.
The Chicago Sanitary District hlec
with the corporation an application FOL
loan of $36,450.000 to further tht
compliance of the district with the
United states Supreme Court order
that the flow of water from Lake Mich.
igan into the Chicago River for sewage
disposal be cut from 5000 cubic feet
per second to 1,750 cubic feet by the
end Of 1899.
Gigantic Bridge Studied.
The San Francisco-Oakl Bridge
to cost S75 900, 900 was discussed at the
first of a series of conferences between
the corporations engineering consulting
board and representatives Of the bridge
commission headed by c. H. Purcell
chief engineer.
The conferences are expected to con
tinue for some time as no estimate ha:
yet been made as to the probable traffic
and income of the bridge. Until then
conferees said, no decision will be made
as to the amount the corporation will
be asked to advance.