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Show Asks for $1,200,000,000 in Addition to Half Billion Bil-lion Already Provided for by Last Congress. Sum of $1,214,000,000 Will Be Returned, Director Di-rector General States in Formal Application. "WASHINGTON, May 2-1. Appropriation of $1,200,000,000, in addition to $300,000,000 already provided, for use of the railroad administration during 191S and 1919 was requested today by Director General Hines. Of the total., of $1,700,000,000 appropriated appro-priated and requested, Mr. Hines said that $1,214,000,000 eventually would be returned re-turned to the government. This-includes money tied up in working capital' and advanced on account to the railroad corporations. cor-porations. Mr. Hines said that, in his judgment, the operating deficits for 191S and for the four months in 1919 were clearly due to the war and to abnormal after-the-war conditions. Because of the present changing chang-ing conditions, he declined to make any prediction of the financial results of operation op-eration during the remainder of the year. Mr. Hines's letter, which was written to Secretary Glass and transmitted by the latter to congress, said: "The operating deficit of S23G,1S4,S40 for the year 191S was due largely to two facts: First, the winter of 191S was unprecedented un-precedented in its severity and in its costly cost-ly effect on railroad operations; and, second, sec-ond, the increases in passenger and freight rates averain? about 23 per cent were in effect for only a few days in excess ex-cess of six months, while heacily increased in-creased expenses due to war cunditions were effective on an ascending scale throughout the tweive months. DEFICIT EXPLAINED BY RAIL CHIEF. "The operating deficit of approximately approximate-ly $250,000,000 for the first four months of 1919 is due in part to the cumulative levels of cofit brought about by the war for labor and materials and in part to the sudden and abnormal falling off of business as a resu! t of the cessation of war activities. The sudden drop in the demand for fuel for oTher basic commodities commodi-ties and the general state of hesitancy, due to the transition from war condition condi-tion to peace conditions, the fact that the present period is transitional and apparently ap-parently on the eve of important changes had made it expedient to defer until the matter can be more act: rate ly measured the consideration of the question now fre-quenttv fre-quenttv raised of an increase in rates. "In my judgment, the deficits for 191$ and for " the readjustment of 1919 are clearly losses due to the war and ought to be treated as such. By reason of the abnormal after-the -war factors tending to important changes in the situm'on the I estimate herewith submitted does not attempt at-tempt to forecast results beyond the first four months of this calendar year. "If the amofint here requested shall be aonropriated. the total appropriation appropria-tion for the railroad administration will have been $I,7U0,000,O0U. WILL RETURN MONEY IS DIRECTOR'S PLEDGE. "Of this amount, ?i.21 4.0"hVj':0 whl rep-sent rep-sent amounts whicii shonl.l he reiurne-l to the government. $425,OuO.OOO tliereof h.-ing temporarily tied up in working capital capi-tal and 775. u '10 .den 1 1 1 c. r e o f r e p !e S' n t i n g amouTits which have iecn and will be advanced ad-vanced for the account of the railroad corporations and which i; will he their du;v to revav as rapidly practicable. About SH.00ni!"'O v ill represent expenditures expendi-tures for equipment on inland water- U"0?f the entire $1 ,7'XiO.iViO.COn. ?4SS.OOO.-O'li) ?4SS.OOO.-O'li) represents the a -: predate !os to the covernrr'ent up to Apr;' GO. on ac count of the l -AO unlets a cove e.- pi'iined. "The c5 approximately SL-.''O.OOm for 1-icreaseJ orliinq capital is re-qucftetl. re-qucftetl. because exoerien na demonstrated demon-strated that tne ati'O'int of wor);ing cap!-tal' cap!-tal' a.'tually available tor uurreri u.e on T'ecembr ri. 1!'1'. "-'s hi u:":ici' u: to ad-rvt ad-rvt of the free and unref iricte.1 payment of pav rolls and ouchers for materials -and- suppiic? tliroutriiOiu t,ie country, j Thre" is manifestly crert advartri-e. h;:k 1 in the e-'ononic.tl purchase of materials, and supplies and X r.e hanrKine of su'-h , transactions to t'v- c;istacU'n of t rre hv:s;:i05.s pubV''. hi having an am:V.-. ri,r, piv of wo-'--i!-.g cas;,. fo r to avert de-lajs de-lajs in lnak'n; pa me-: E." RAIL HEARINGS TO BEGIN ON TUESDAY. Chairman (tort t:ie,hw nrrropr!.--I tions corn:r.it:. e 5 h i c; i.earii.crs on the I iw;ro?i adTiini-tr:it;e's rrott-yt vouil (Continued oa Tsgc 3, Column 2.) 1ES SEEKS FUND FDR USE OF RUES (Continued from Page One.) l'i-Sln Tuesday. Some rprnmmendatlnn lv tho rommltlec is rxpe.-tcd within a week 1 lie liftnllod Item listed bv Mr. nines In Ills letter requesting Uic appropliutoii were as follows: Jveqtiirenients for 1H1S: ,i ;VV.UV! lu,':Xss:"'-v to defray operating detlelt-tho dlflerenec between the standard stand-ard rental payable to the railroad companies com-panies and the net operating Income, lor the year 19IS. $:3li, 18-1,9 10. For net cxos of current assots over current liabilities, partly available for the "nTS-si'its worldns caI'ltal requirements, Improvements on inland waterways, 5-1 ,SS6. ' Amounts advanced for account of railroad rail-road companies to enable them to pay In part their current liabilities, $100 000.-000. 000.-000. Amount of additions and betterments expenditures, including equipment, made to the railroad companies' properties during dur-ing l'.US, which must be carried by the railroad administration for the timo being. be-ing. $:i."ia,;.i3.-tr.. Loans during 191S to railroad companies, com-panies, not Immediately repayable, S1S,--ts:i,;i.)9. Total requirements for 191S, !911,S02,-f3S. !911,S02,-f3S. Less amount heretofore appropriated, $500,000,000. Balance required for 1918, $-141 ,802,-laS. Estimated requirements for 1919: For amount of additions and betterments better-ments expenditures, including equipment, made, and to be made to the railroad companies' properties during 1919, which It is believed will have to be carried by the railroad administration for the time beiny, ?2o3,43j,760. |