Evening journal., 1913-05-29
DROP In MARKET
FOR RAIL ISSUES
Roads LiStinGS in 1912 Drop
ped to Lowest in a
Decade

The railroad share Of total new
securities issued mas been declining
sharply" This is the conclusion Of a
study Of railway credit by the Railway
business Association. published in a
bulletin, Shippers and the Advance
In Freight Rates The railroad pro-
portion OF total issues. says President
George A. Post. was in 1912 the low
est Of the decade, while other corpora
tions issued their highest; and tho
roads I'm 1912 issued more notes which
bear higher interest rates than they
issued stock and bonds combined.
There is something the matter with
railway credit"
The bulletin shows that from 1909
to 1912 the railroad share Of all securi-
ties dropped from 624 per cent TO 19
per cent. In 1909 the railway securi-
ties issued we're S601 .535.045 more
than the non-railroad. and in 1912 the
non-railroad securities issued were
more than four times the railroad Sc
ourities
Prof William 2. Ripley. OF Harvard.
Is quoted as saying that unless there
is relief in the form OF rate advances
"the public Is going to be denied the
facilities and tie accommodations 10
which IL Is Justly entitled and ex-
tracts from newspaper editorials are
given to demonstrate that whatever
Is the matter the country wants the
Interstate Commerce Commission 10
find a remedy. in which there will be
general and cheerful aoquiescence.
Not Eight
Fight" It Is declared is not an
appropriate name for the Eastern
rate proceeding. "Antagonism to rail
ways has subsidized. Regulation Of
rates is complete Confidence in ths
Interstate Commerce Commission Ia
thorough. The public views the, situa-
tion with equanimity. This Is prog
ress IL is vastly more important that
railway questions shall be settled in
good temper than that any particular
rate case shall be decided any particu-
lar way. II is to be hoped that the
country has seen its last fight" over
freight rates.
Railways Must Show Need.
1T is necessary that the railway
managers should demonstrate their
need. It is desirable that shippers
and the public shall appreciate the
burdens OF cost which have been and
are being laid upon the roads, the
greatness Of the task which the roads
must perform to meet their obliea-
tions to the public and the generous
allowance which ought to be provided
for doing, on the higher scale Of oper-
ating cost, the vastly greater things
demanded by the miraculous growth
OF our agriculture, commerce and in
dustry.
Shippers and railroads can aid the
commission substantially by endeay
oring 10 reach agreements as to tho
schedules and the traffic upon which
tho increase, II any are to he granted
shall fall
1T was evident after the hearings in
1910 that able and influential traffic
experts looked forward TO another
such proceeding determined 60 con
tribute all they could Go a friendly at
mosphere from which appeals 10 popu.
! lar prejudice should be banished
Traffic representatives. OF shippers
and OF business bodies are entitled "a
have the assurance that those who en-
ploy them are cognizant OF the situa-
tion and will appreciate the reason
Why the presentation OF the carriers
case is scrutinized I'm an amicable
rather than I'm a hostile attitude.
Traffic 0utranks Facilities.
Facilities have Jagged behind Even
with the mild weather and unprece-
dented cooperation OF shippers and
railroads 10 expedite car movement in
the fall Of 1912. the net car shortage
rose 20 5l.l02, and the gross number
of cars asked for and unavailable 20
1915. A winter Of normal severity
would undoubtedly aggravate this sit.
uation into serious and perhaps a
disastrous congestion, Traffic has
grown faster than facilities,
Does the public want the roads tC