The Washington times., 1908-08-21

! given to the public as yet. 1t is known
that they went over the matter IN much
detail ana that the difficulties OF Ine
situation We're carefully considered.
Secretary Cortelyou realized that the
/ vide scope or the any other securities
phrase manifestly made it include not
only the bonds but also the stocks, OF
I railroads. tie must be prepared 10 pass
on any sort OF security which might De
offered.
Chairman Knapp explained that tie
[ Government never mas undertaken sGch
task as classifying these securities
and determining th1ir actual values and
reliability. Mr.. Ccrteiyou insisted that
. the law plainly imposed on him the task
! OF hnding out which were ana Whlcil
were not good as security, lie wanted
10 know how TO do it,
May Be Offered.
tt was pointed out that, in view OF the
great amount Of these securities heid
by banks on loans, it was practically
certain they would be offered as guar
antee for emergency circulation II such
circulation should be required by banks
this fall He was determined To keep
on the safe side in accepting any such,
in view of the determined criticism
which had been aimed against the ac-
ceptance OF any such paper for emer-
gency issues. he wanted the fullest
cooperation OF the commission in de-
Gliding when the question should come
up to him. This Chairman Knapp
promised.
The conference resulted in a decision
which practically amounts 10 the Inter
state Commission undertaking To make
valuation OF the railroads when that
Is made necessary under the Workings
of the currency act. AiT Knapp eE-
plained that t would manIfestly De I'M
possible 10 gather up such complete
data as would satisfy the needs OF the
I treasury, concerning all the railroad
issues of the country, ia the time that
could be used.
That would be a labor of years. and
require large and highly organized
|. force experts But, he proposed,
whenever bank shall offer q list OF
these SecuTlties for CurTcDC- the COM
mission viii undertake, when supplied
with the list, 20 make prompt eXamina-
ton o. the properties against which IEe
stocks and bonds are lssfed, 10 learn
just what the lien or security may uc. 4.
10 study the financial history of the
company, determine how much It's gross
and net earnings have been, how regu-
laFly and 10 what extent 81 has paid
dividends OF interest, what is the CON
dlUiOn and extent o. its property ana
the general pro specl OF its future.
Secretary COrteiyOu expressed the
opinion Tuat with rHis Information an
hand. he would be able 20 keep on the
safe side in passing on securities ana
iJ has. accordingly. been agreed that
this shall be- the modUs operandi
Many Are Amused.
The Incident has caused a good deal
Of amused comment about the Inter
state Commission headquarters, because
IL has served the purpose OF bringing
forward in so unexpected q fashion.
with entirely new influences al its back.
the old arguments for "a valuation cf
ca.
it is pointed out, makes this valuation
more necessary than it ever was be-
fore, simply because il provides for the
Use of She whole range OF railroad Sc
cuTities,
So long as II was not directly con-
CCTnCd with the valves of these. the
Government didn't worry itself much
about whether other people. dealing in
iallToad securities. we're getting value
received or not, but now that IL is put
ting Gp its own credit along with g.JaJ
of the railroads. as a basis for money
Issues the Government has awakened
10 the Importance Of knowing wEdJ
these securities represent
There IS little doubt in the minds or
those wlo have followed these confer
ences between the Treasury and file
Governments railroad supervisory au
tEOTify. that the matter viii strongly
Influence In favor OF passing railroad
valuation legislation next winter
t'Sli1t' t'- Ia + vl-etiE - S'ii4s I'd blHl
II with The greatest energy. and a mum
bcr OF the younger Western Senator's
are prepared 10 back him, Now that
the big financial interests suddenly
find their interest in the new. currency
act involved with such a measure. It
is believed the opposition heretofore
shown L such a move viii in large part
disappear
The President has repeatedly recon-
mended such a measure. and is eX-
rccted 10 be more vigorous about if
than ever, in mis- forthcoming message.