The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-11-27
RAILROAD RATE HEARINGS
P'Rf >IDfNT ar now LffE
~ OR> PROPOSED MORE tsE.
Ne ~aLi the iIf. Insurance tompanies
boius Iiusin~~s In New Nork Hold
sIi3:. 1p,. ,nh,. or On~-eighih. OF tine
Railroad i,ond Issue Df the Country.

M.SuI>GroV. Nov Members OF tho
mtcr-rar" Commerce Commission ar.
deeply impressed with the ma gnitude OF
IN, problem involved in the application
oT IN" railroads - increase freight rates
They -iV tn" rs. u the most important
ever yr, ~entrd tor their confederation.
Affecting a. II may IN" general prosperity
uf the country
\ new element was injected into the
controversy today. ,,.nrg" e. Iis,
representing IN" Association ~ Iif"
Insurance. Pr, dents. came forward with
4, plea ~ b.'iilf at th" increased rates.
speaking. Is b." sod. tor twenty million
puiryholier> Nir Id" pointed out that
n authority wcr" denied the railroads. Ia
advance rates their earnings would hs
diminished This he sid. would affect
~. vain" II securities. II" made the
assertion thar the III" insurance COM
plui", ri ia" United States hav. billions
II dollar, invested m railroad bonds.
II tnoy drcliI. in value. "a Mr.. Idle he
hcvc- they val should the railroads le
unahi' To- increase their earnings through
Increased rates. ia. Insurance companies
might h. disposed L. put their money
IA other Investments.
III Ia date Mr. Ide has he.,n IN. only
witness I" appear Tor persons or property
not directly concerned SOM. IT th,
Representatives, II the shippers or ship
per, Association hlv" profosss.d 10 speak
Tor IN" opa-umers. but IN the main the
commission has heard oHly from ia.
parties concerned.
II Is apparent that before reaching a
conclusion N IN" rnt" cIsas the COM
mission intends To mnv" with the greatest
d"hh"rltion. Two or thr-. months may
ehp9r hafnr. a decision j. announced
Mr.. Idle and T.. i Williamson 81 Gin.
clnuatI. representing tn" Receivers and
shippers Association IL that city. ap-
p.ylr.i hafor. the commission To- day
Here - what ~ Idle said
Thc i"ris.nn of IA" question now before
tn. commission vii hav" Il potent influence
uprn -" iu'ur" earnings ot oar railroads
and Gpra 'h"-.' earnings will depend th..
vaiIr uf their ~''uritiy- said Mr lie, In
InNr- ..'nt~ for III" insurance companies
thr frg-..'D- II tho. funds seek safety
satisfactory interest," r''uru ard stable val
us- l. - ais" ~ ",ttruir Importance to
scum long term turrstiu MS n possible
u ~ a tri'" ay.ou thar credit - bas..i
largely ou sentiment II there - for any
reason "r'a'"l IA a." mud OF the financial
world IN" slightest ~'i>In'suu that our rail
r"ah- ''''u"t earn far hNin. hen credit
will b. al ONCE impaired. for buyers OF hes.
securities v'u u"t hc found
| am u"' here ~ plead for holders ri
iuunr -'rlr,r,... although they hay. their
rights. hur IT. wish ~ impress upon ynur
minds 'u'' iinr that /. nl-tr,s~t - 'reat.d
tn bonds. ~" underlying securities viii h.
luJur'I no heir value VII" viii suffer?
y nearly - "In learn. ~ the entire
bond i~s.'" "i ~" steam railroads of this /
country. amounting To so,IIs."H.UI. tho
~" 'u~!rln'" companies doing business IN
the STAT" ~ New Nork h"l a. go az ts.,
"r "u"-". :h'h uf ~" entire railroad bond
i--Ii.- "i M" country There lr" about
cntpn '-.,' pri, yhuld"r- IN th.>., life In-ur-
an" '"iuiIul"-. Hrd they ~" all. Colln'-
lively aud individually Interested ia ia.
Iu,szr.ty nj iht- Investment
ANY NOV" which even --ntmentalIy
affects vniI' orahly the railroads Of th..
land will -'rrk" "A blow ~ these securities
which n aH"cr This vast army "f thrifty
citizens u f- not necessary rp reduce rail
too J. - condition 81 hank ruptcy h"for.
the ,tlr" ~ 'h. underlying securities IL
afe,t"i
know tha' IN YOUR deliberations yo,I
ar. giving ." this mon"n'ou@ question the
most careful thought and inNe-tlgatIon
hu' - -""m- I" III" 81 vital Imprrtanc"
that ~ arriving ~ = sound conclusion pn.
should no. ev-r!noA H." fact that a false
-t.2 ~ ih, time vii, affect seriously
vast number III "ur citizens. who unable
iudI' tiuIlIy 4" maze their own invest
m-n'. IA ~",GrltIcs ~ raIlTpad- az. yet
Indirectly hut ultimately interested IN
their PROSPERITY aud VOL being and fur b.
ther that y"Ir action will he. '"nsIder.i
A. precedent To- giIId" m" commissions
0i our several states IN 'h"i- rvnSld"ra-
ton 81 similar problems
lie shipper tho iObber. tao salesman
AMI .ou.um"r all hav" rights ~ paramount
"a kn T..lt E,f,I =
saving tank investors must al-p h." con
-idernd for 'heir interests ar. air..aGv vested
IA >HourIIIe- whlrh hav" been purchased ,
for their protection and profit which were
Wis. AMI "ons.rN ItsNa Investments on the .
rar' ~ their trustee, AZ the r.iEe they v"--
made
Mr. williamson WIS -"lcrtsi bv the r
shippers - reply 80 Tho testimony ~ ,
railroad presidents sTnI1it''.,i som" wcek- .
aLp Tho Dr"S'si"n'- 49, forth the tinap-
'idl coTdIrlon ~ ~" r"-J"ctIyc railroads. .
all d.srgu..si y" -huv. that 'h., properties .
could nor -. "uO,iV"frf with profit unless /
incr"ts"d rates w"'" authorized Mr. J
NllhamSpns TESTIMONY was technical
IN character T. wns loaded with figures
and "loF"lv analvt zeal Il 'ha statistic,
prosecuted IN behalf Of III" railroads
W" argued that IN" railroads ha,. only .
,iit IN a claim for increased Iat"- hprirg
that 'h"v would get them bur 'hs' rh,.,
had not mad" ont case that - a. .ntItl"I
g. serious consideration
III" Indications AT" that N" behring's
hef"r' th" commission VIII confirm" fur
D. ~ turFs