Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-11-26
interstate Commission Urged
Not to Hurt Railway Credit.
GEORGE W. IDE IS WITNESS
Speaks as Representative of Insur-
ance Policy Holders.
GIVES WARNING OF DANGER
Suspicion That Roads Cannot Earn
Fair Living, He Says, Would
Impair Securities.

Speaking for the 10000. 900 life insurance
policy holders in the United States. Presi-
dent George +. Ide of the Home Life IN
surance Company, today urged before the
interstate commerce commission that in
its disposition of the pending freight rate
increases in the eastern trunk line ter
ritory the commission avoid any move
which would strike blow at railroad Sc
curities.
Mr.. Ide said in his testimony that lie
was not taking a position for or against
the proposed increase, but pointed out
that.in his company alone 37.s per cent
of its total assets is invested il railroad
securities, and that his company held
these bonds sacredly in trust for its 5000
policy holde.s. Mr.. Ide said he appeared
for the life insurance interests generally.
Danger to Credit.
If for any reason" he sal !, there Is
created in the mind of the financial world
the slightest suspicion that our railroads
cannot earn a fair living, then credit will
be at once impaired, for buyers OF these
securities will not be found.
''Of the entire bond issues of the steam
railroads of this country, amounting To
-, llo,UUU,OOO, the HE insurance COM
psaAbSS poiuS DuSluesS III lI.e state new
York hold u, l3s,UvU,U00 or one-eighth.
The D,CUUOOO policy holders in these life
insurance companies are all, Collectively
and individually. Interested in the integ
r1ty Of this investment.
ANY move when even sentimentaly
affects unIavorably the railroads OF the
land will strike blow at These securi-
Ties. 1t Is not necessary 40 reduce al
roads to conuiulon or rankiup.cy be-
fore the value OF the Underlying securi-
ties is anected.
For these policy holders |, therefore,
appear. Ihey are not aoie to pieau for
themselves.
'ine Individual investor has his rights.
Out he Is unable to appear for hImse.f.
Under our general economic system tne
small saver, who may become the future
capitalist, is partner In these enter
pllses.
anything which affects unfavorabiy
the p. osperity ana extension OF our rail
roads Will ultimately ne IeIt by him His
welfare Is or vital Importance to the up
building of our nation
Fears for Future.
why such trepidation at this time"
asked Commissioner Lane, when last
year was the best year the railroads over
nad?"
Its as to the future replied Mr. Ide.
L know that such sentiment exists"
Mr.. lde said he submitted a statement,
winch he Used In touay testimony, TO a
conference "a ieduins ne Insurance otti
clais. ne was asneu IL the r.au,,aule Life
Assuia Hce Society, Mnlcn wdo ItpresenleQ
In those conferences. was not a j. l.. Nor
san coinpahy. he did not know.
Tfesseu uitnti, lie sdiu newspapers
had saiu tue Euultau,e was colitroIied b.
IhUi gan. ne Ue,ieveu InaI Statement
MI. ide said the pea ior Investment Sc
CURLY lnleeilty InIenI De Carried Iurtner,
10 me lnlei es,s OF ,ne savings pankS anu
eQucauOIIaI INSTITUTIONS.
knapp's Views Assaulted.
At the session yesterday afternoon
Chairman knapp would not indorse IL.
view mat the auuing OF ilve mus to the
cost OF a PAIR OF shoes would materlalI,
enecI the ultimate Consumer rurIue.
| ne said tnat ne nad deem tod Of a case
where one Dig Suue factory mad recently
pat up the wnoiesa,e se,ing piIIe OF a
paIr OT SnoeS ID cenIs, ana .uaue II man
| uaIUry upon its CUSTOMERS a..ivug retail
CTS to ADVANCE the se,nng prlce TO con-
SumeIS Az Gents d pair.
Attorney W after Luwre Fisher, who
represents the national whoiesaie Dry
GOous Association ana the western As
sOclaIiUn or SnOe Wholesalers, arose.
lis it the opiniOn OF the chairman that
raiirOauS are privileged To au. ance rates
a nttIe or "a eat zeal tor uetter
reason than because the direct drain on L
slngie consumer is only a small amount:
ne aSned.
Attorney James, for the shippers. also
wished to have the chairman explain AZ,
IN lne penang case, the chairman had
uecume convinced tnat the rate advances
should be agl eed to by the commission
solely on the ground that they did not
much hurt any individual consumer.
Here Commissioner Clark interviewed
and said that no member of the COM
mission was authorized to speak tor any
other member nor for the whole body
Young Economists Figures.
B. =. Bergunder of Baltimore. nine
teen-year-old economist, was put on the
stand to testify to his own statistical
computations concerning the rights Of
stockholders
He has recently graduated from the
Wharton School of Finance, at the Uni
yersity of Pennsylvania. and used the
figures he compiled for his thesis in con-
nection with his graduation. In few
me ments he had every one figuring.
The members of the commission we're
porting over copies of his tables and all
of the counsel were listening eagerly to
ANALYTICAL interpretations and deductions
@. the figures The rapid-fire calcula-
tons made by the witness, in response
TO two or three inquiries, were sufficient
To let him and his tables pass by I'M
challenged.
The young mans contention was that,
i'm a majority of instances, the increment
on the stock of the railroads. aside from
dividends, is I'm excess of the dividend
paving power and in most of them ~
Lon equal TO 1t.