Evening star., 1933-01-29
|RA|LWAY AID PLAN
PROMISED FEB. z
Smith Fixes Date Of Findings
by Committee-R. F. c.
Loans Probed by Couzens.
BY the Associated Press.

BY the Associated Press.
The results Of quick but thorough
inspection of the Governments end Of
the railroad problem, were carried back
to New York last night by voluntary
Citizens Committee with the promise
Of definite plan for righting the coun-
try's transportation troubles by late
February.
The distinguished National Trans
portation Committee, of which Calvin
Coolidge was chairman until his death,
left behind in the Capital quickened
activity on various angles of the rail
problem which forecast action in sew
eral directions before the committee
report is issued, by February %.
The members, Bernard M Baruch,
acting chairman; Alfred E. Smith,
Clark Howell Of Atlanta, Alexander
Legge of Chicago, conferred at the
Capitol with Representative Rayburn.
chairman of the House Interstate Com
merce Committee. examining pending
legislation, then went to the Interstate
OoAhiANA'N lOl oil ChlcIhCu
discussion with officials who direct rail
regulation
Smith Backs Rayburn Bill.
Smith. acting as committee spokes-
man. set the date for the report, said
the committee was in sympathy with
the rail bankruptcy plan Of the La
Guardia -McKeown bill, but declined to
lndorse 1t specifically. He did approve
Rayburn's pending bill to repeal the
recapture clause. under which the Gov
ernment Is authorized to take portion
OF excess railroad profits.
Definite new energy was put behind
this and other legislation, although the
bankruptcy act was the only one ap-
pearing to have distinct chances of pas
sage at the present session.
Another attack on rail problems, how
ever, was launched by Senator Couzens.
who as chairman OF a banking SUBJ
committee, started investigating Recon-
struction Finance Corporation loans to
determine whether his resolution, to
forbid any more such credits for time.
should be adopted.
Couzens said the committee would
require estimates of the present value
of collateral put up for such loans:
would demand the names of roads likely
to have to borrow within the next six
months, and would call upon the Re-
construction Finance Corporation to
give a complete summary of the leans
made, and where the money went.
1t is not to the interest of the se-
curity holders or the public" the SEN
ator said. that the Government con-
tinue using the taxpayers credit to
save an already hopeless condition"
He emphasized the remark did not
hut hot =, =
borrowed that can't hope to have their
overinflated capital structure main
tanned"
Hearings Start Tuesday.
Hearings will begin Tuesday
Smith announced the date of the
Forthcoming report after the conference
with Rayburn. He declined to indicate
what the recommendations would be-
The sole and only purpose of our
visit" he said, 'is to get ideas and to
check up on some things relative to q
comprehensive report and plans in re-
Spect to the railroad situation and what
can be done about it."
Discussing the bankruptcy revision
bill, he said that while naturally in
sympathy with the measures purpose,
he could not say whether the commit
tee would approve of the bill after it
NOhACo 1lOlll IilC meaning
| when the House has finished amend
ing it.
Smith also refrained from expressing
an opinion on pending bills by Rayburn
| to place railroad holding companies
| and bus lines under I. C. c.. regulation
Both plans will be dealt with in the
| report he said.
| The committee did not call on
Couzens. chairman Of the Senate's
Interstate Commerce Committee. be-
| cause his view already hao been OBJ
| tanned by Baruch and the committees
| time was limited. 1t assembled in
Washington yesterday morning at
| Smiths hotel room. went directly to
Rayburn's Office and. after a lunch
time recess. met again with the inter-
state commerce commissioners. After
this meeting the members separated,
most of them heading for New York,
where the next meeting will be held.