Evening star., 1938-06-11
IMMEDIATE RAIL
AID DECIDED ON
Adjournment Delay Seen in
Roosevelt Call for Stop
Gap Legislation.
By G. GOULD LINCOLN.


Aid for the railroads, some of which
are nearly on the rocks, determined
upon by President Roosevelt and his
advisers late yesterday. became q new
and major problem for Congress today.
The legislative program which will
be worked out over the week end calls
for at least two main provisions
The first is railroad loan bill. pre-
s,imably like the Wagner bill, authoriz-
ing loans to be made to the roads by
the Reconstruction Finance Corp.
The second is an amendment to
Section n of the Bankruptcy Act, to
speed up receiverships of railroads,
giving the courts greater authority to
scale down Indebtedness without being
held up indefinitely by minority stock
holders
Wheeler Attends Farley. %
The determination of the President
to press for action by Congress on the
railroad problem became known fol-
lowing conference at the White
House between the Chief Executive,
Jesse Jones, head of the R. F. c.. and
Senator Wheeler of Montana, chair
man of the Senate Committee on Inter-
state Commerce. Senator Wagner of
New York, at a luncheon engagement
with the President earlier, has also dis
cussed the precarious condition in
selves.
Although the program outlined-the
details of which are still finally to be
settled-is not intended as a perma-
nent solution, the interjection of this
new legislative problem at the eleventh
hour will prevent adjournment of Con-
sress until the end Of the coming week,
1t was predicted today.
During the recess Of Congress the
Interstate Commerce Committees Of
the Senate and House and the Recon-
struction Finance Corp. will be ex-
pected to prepare a program dealing
with the railroad problem in its en-
tirety. to be submitted when Congress
meets next January.
The President became convinced
however, that it would be unwise for
Congress to wind up its session and
leave Washington when some Of the
great roads Of the country were in dire
straits. Unless they are given some
assistance. insurance companies and
banks with investments in the rail-
roads. 1t was understood. stood to
suffer losses. too.
The decision to 60 to the aid Of
the railroads is part of the whole ad-
ministration program to tide things
over these depression months until the
new Congress comes to Washington
next winter.
After Senator Wheeler left the
White House late yesterday, he said:
The indications are there will be
. minor railroad program submitted
for action of Congress at this session.
! do not see, in this event. how Con.
gress can adjourn before the end O,
next week.
There is q very serious problem
existing in the railroad industry at the
present time. In my opinion some
thing should be done to speed up re-
organiza ton of the railroads and to
cut down materially the fixed charges
of some of the roads To that end ]
am willing to do everything I can to
assure the passage of any law that
may be desirable"
Senator Wheeler and Mr.. Jones are
expected to get their heads together
today and tomorrow over the imme-
diate problem of helping the railroads.
II possible, some legislation will be
whipped into shape for introduction
Monday. 1t will then have to be con-
sidered by the congressional commit
tees before it can be brought into the
House and Senate.
The railroad program. added to the
wage-hour bill and the big lending and
spending appropriation bill, will de-
lay Congress for several days. There
is still chance that the wage hour
bill may cause good deal of trouble
before 1t Is finally enacted into law.