New-York tribune., 1910-12-23
URGES AID TO RAILROADS
Witness Argues Federal Regula-
tion Is Not Enough.
ROBERT MATHER ON STAND
Comes Out Strongly for Public
ity Aiso-Comnission Next
Meets in Chicago.

Robert Mather who is chairman of the
board of directors of the Westinghouse
Electric and Manufacturing Company, vice
president of the ST Louis & San Francisco
Railroad Company general counsel Of the
Chicago & Alton and director Of the Chi
cago. Rock Island & Pacific and the Ha-
vana Electric Railway Company, told the
members of President Taft's railroad securi-
ties commission yesterday that the govern
ment should aid railroads in this country.
He based this statement on the ground
that government regulation of railroads
was prejudicia1 TO the credit Of the railroad
corporations.
The government has gone so far in the
way of regulating railroads., said Mr..
Mather, that it should go further AS a
matter Of fact, the community loses more
by inadequate or insufficient railroad fa-
ciIities than by dividends paid on watered
stock. The country is far more interested
in the high efficiency of the railroads than
in the question whether they pay or 10
per cent.
In my judgment. when the government
authorities go so far as to regulate the
question of rates, and when such rates do
not permit the company TO operate under
average economy in such a way as to earn
enough money to maintain its credit, l be-
iieve the government should so further ard
lend the credit of the country in order to al
low the railroads TO look after their needs.
AS federal regulation extends it has the
effect of making first class railroad securi-
ties such as first mortgage bonds, etc, ex-
celIent investments. but. on the other hand.
it has the effect Of making the second class
of securities upon which railroads depend
i. .1..E-.
sions less desirable for investment pur-
poses
Mr.. Mather made it plain, however, that
he was in favor of federal control, except
possibly in the matter of the initial issue
Of securities With regard to the prohibit
ton Of issuing stock below par, he said
such a measure would put end to fur
ther new railroad development in this coun-
try. This. he argued. would be undesirable.
as it would prevent the extension of railroad
service to a large portion of the country
which badly needed it. like the Northwest
He came out strongly in favor of public
fly and said this should include statements
of the cost of extensions He would go so
far as to exact that should director Of
a company buy INTO another company
which was about to be brought under the
control of his company the fact should be
made public with the date of purchase, TIE
price raid, etc He also said that when
railroad directors were interested in equip
u,ent companies that fact should be pub
lished.
Frank Trun1buII, chairman of the boald
of the Chesapeake & Ohio, said he favored
federal control not because of its bearing
on rates but because he believed railroad
directors should commend themselves to
the public as well as TO one another After
saying that capitalization had only a slight
bearing on rates, he instanced his own
road, which. though capitalized at 100000
g mile while the average vas $57.000 still
gave the lowest average rate a ton-nliIe
in the world.
1t was announced that the next meeting
of the commission would take place in Chi
cago on January %, ISL,