Evening star., 1933-09-19
AUTHORITY
CLAIMS ARE MADE
Existing Statutes Allow Loan
From Public Works, Ap-
p|icants State.

Existing statutes give the Public
Works Administration full authority to
grant a loan of $425.O0o to the Chesa-
peake Beach Railway Co. for the es-
tablishment of ferry service between
Chesapeake Beach and Hudson. Md, it
is pointed out in a 19-page brief on
file today from the applicants for the
loan.
The filing of the brief came simul-
taneously yesterday with the announce
ment of public hearings on the appli-
cation, to be held Thursday at pm.
in the Interior Department Building.
with Maj. Carey H. Brown presiding
Under the leadership of Thomas P.
Littlepage. president of the Washington
Chamber of Commerce, a full repre-
sentation Of trade and civic groups Of
the Capital and the Maryland territory
affected by the project is anticipated.
Several Statutes Cited.
Drawn up by Jonathan C. Gibson, at
torney for the railway company, the
brief cites several statutes having a
bearing on the question and supporting
the legal eligibility of the project for
public works loan. 1t states the loan
could be made under the national in
dustrial recovery act, the emergency
relief and construction act of 1882 and
the interstate commerce act, as
amended.
1t Is pointed out that under the ma
tlonaI industrial recovery act the Sec
ton enumerating public works which
may be financed under it makes provi-
sion for any projects of the charac-
ter heretofore constructed or carried
on either directly by public authority or
with public aid to serve the interests of
tie general public"
Another section Of the same act, the
brief states, empowers the President to
aid In the financing of such railroad
maintenance and equipment as NAV he
approved by the Interstate Commerce
Commission as desirable for the i'm
proVement OF transportation facilities"
The I. c. c. already has given its ap-
proval to the Chesapeake Beach ferry
project both as to its social desir-
ability and as to its fitness to receive
financial assistance through the me-
olum OF Government loan"
The emergency relief and construc-
ton act OF 1882, enumerating the types
OF public works formerly eligible for
loans from the Reconstruction Finance
Corporation, whose jurisdiction in this
regard was transferred to the Public
Works Administration, authorized the
R. F. c. Ito make loans to private cor
porationS to aid in carrying out the
construction, replacement, or improve
ment OF bridges tunnels, docks, via
ducts. water works, canals. ETC."
The brief holds that the Public Works
Administration has full authority to
lend money to the Chesapeake Beach
Railway Co. for the construction of the ,
ND A1rNI
Beach" The construction of the docks
would cost 100000 of the amount
asked
Approved by 1. c. c.
The brief cites further that the In
terstate Commerce Commission on Feb
ruary 18 last handed down a decision |
approving loan to the railway COM |
pany OF S425, 900 to finance in part the |
cost of construction of the extension |
linking its line with the Eastern Shore |
of Maryland. The remainder of the |
cost of the project is to be provided for !
from private sources. The I. C. c., it |
Is pointed out officially recognizes fer |
ry boats as railroad equipment.
1T is submitted" the brief says.
that the Public Works Administration
Is fully authorized by existing statutory
authority to lend the Chesapeake |
Beach Railway Co. the s425,OO0 for |
which it has applied
This conclusion necessarily follows !
because Cd there is statutory authority (,
for loans for the construction of the !
docks, which will cost 100000; (2J |
there is like authority for a loan for the |
two ferry boats involved in the project. |
which properly come under the head of |
railroad equipment and which will cost |
S500,000 or more than the amount of |
the loan requested; 90 whether viewed |
as railroad or a ferry project, it is
eligible for loan because it is of a |
character heretofore constructed or
carried on directly by public authority |
or with public aid to serve the interest |
OF the general public, and "a the ferry /
extension of the railroad is a public !
utility. public service enterprise and, /,
therefore, public works program which |
may be included on the emergency
construction program by the admins |
tration under the statutory authority to |
so include any public works project |
whether specifically mentioned in the
national industrial recovery act or not" |
Indorsed by Chamber.
The ferry project already has the !
Endorsement OF the Chamber of Com
merce and other trade and civic groups
here, and yesterday brief supporting
1t was filed by Is municipal and trade
groups of the Eastern Shore counties.
The ferry would decrease the distance
between Washington and the Eastern
Shore by 40 miles. substantially in
creasing the Capitals trading area as
well as beneflting the farm producers
OF that region