The Washington times., 1910-11-26
.IDE MAKES PLEA
FOR STABILITY Of
RAILWAY SECURITIES
Insurance Man Appears Be
fore the Interstate Com
merce Commission.

A new element in the railroad rate
cases wGs injected into the hearing
before the Interstate Commerce Com
mission today when George L Ide
president Of the Home Life Insurance
Company. took the witness stand to
urge that the 100000 policy holders
in the United States must be consid-
cred as investors in any adjustment
OF rates.
Sir- 1de, IN presenting his argument.
represented himself as appearing in
the interest OF these policy holders.
but crOss-examinatiOn DEVELOPED the
1act that Mr.. Ide was the spokesman
OF the Association Of Life Insurance
Presidents, that his argument repre-
scented the views of that association
and that Paul Morton, president of
the Equitable, controlled by J. Pier
pOnt Morgan, took an active part in
the railroad discussion at which Mr..
Lde's argument was discussed and
O. KID
Must Not Distrusb Securities.
President Ide declined 10 go on rec
ORC as favOring or opposing increased
railroad rates He wished to impress
the commission with the necessity of
dealing with this railroad problem in
manner which would not disturb
the railroad securities owned by the
insurance companies as trustees for
20.o00-00O people
Any move said President Ide
which even sentimentaIly affects IN
favorably the railroads Of the land, will
strike a blow at these securities which
VIII affect this vast army Of thrifty citi-
zsIS- II Is not necessary to reduce rail-
roads 10 q condition of bankruptcy be-
fore the value of the underlying securi-
ties is affected
1T seems 10 me OF vital importance
that IN arriving at a sound conclusion
one should not overlook the fact that a
lalse step at this time viii affect seri-
ouSiy vast number Of our citizens
who, unable individually to make their
Own investments in securities OF rail-
roads, are yet indirectly but intimately
interested in their prosperity and well
being and further that your action viii
the commissions of our several States
n their consideration Of similar prob
lens
Insist On Stable Values.
In investments for life insurance com
panies the trustees for these funds seek
safety, satisfactory interest return and
stable values Il IS also Of extreme
Importance TO secure long term invest
ments, If possible. II there is. for any
reason created in the mind OF the fnan-
cal world the slightest suspicion that
then credit viii be at once impaired, for
buye-S OF these securities viii not be
found.
In response 10 questions by Commits
sioner Lane. President Ide said that the
railroad securities held BY his company
paid an average Of 4Ss per cent, which
he declared 10 be somewhat lower than
the return on the investment i've years
ago he said that legislation had
great deal 10 do with this reduction. but
when Commissioner Lane called atten-
ton 10 the fact that last year was the
best year in the history Of the railroads
OF the United States. Mr. Ide said that
# was the fear Of the future which had
q bad effect on railroad securities
Publicity Agent Is Heard.
SIawson Thompson, Of Chicago, who
appeared IS a witness for the railroads
IN the western rate hearings held IN
Chicago, was called TO the stand by
Francis B. James. Of St Louis. coun-
sci for the shippers
TEompsOn's testimony brought out the
fact that he acted as publicity agent for
nearly every railroad running into Chi
cagO, and that he distributed a vast
amount Of literature n the interest OF
the railroads. and some OF which Sc
verely criticised decisions OF the Inter
state Commerce Commission Having
established Mr.. ThOmpSOn's railroad
ceased his examination The witness
had come to Washington loaded with
data 20 present 10 the commission On
the rate question. but he was not per
T1itted 20 so beyond the questions asked
BIZ counsel for the shippers, counsel for
The railroads having announced that
thew were not anxious 70 have ThOmp-
son testify in their behalf