The Springdale news., 1914-10-09
RAILROADS HIT HARD
 BY THE EUROPEAN WAR

Little Rock, Oct. 2.-It is admitted
 that every industry is seriously af- fected by the European war, and Pres. Bush of the St Louis. Iron
 Mountain X Southern railroad is not alone in the contention that the
 railroads will be injured by it great CT than all other branches of trade combined.
 Pres. Bush has issued a statement i'll which he states that the problems confronting the country in mark eting its valued products is momentous, but that the Democratic administration, and the people in general were do ing all in their power to relieve the situation, vat they have failed to in clude the railroad, which is affected the most seriously.
 Though much has been considered and done for the relief of other in- dustries, nothing so far has been suggested 10 aid the railroads, says Pres. Bush, which is all important to every other. For some years back railroads, by reason of diminished net earnings, have experienced diff culties in borrowing money to make necessary improvements to meet the requirements of the expanding busi- ness and the public demand for better service. This war emergency will accentuate this situation and further impare their credit, so that under the present conditions of inadequate revenue all attempts to finance railroad securities will be futile
 This is the gravest danger with which railroads have been menaced il their history. They are thus not only deprived of the means to meet current urgent needs in affording adequate service, but they are con iron ed with the problem as to how they can take care of outstanding obligations which mature in the near future
 A careful computation Of these obligations show there are upwards of $57S, ,000 900 in default at the pres ent time, $34, ,oO0 000 which must be met before the end of this year and S563 GOO ,000 between now and the end of the next year It is needless to say that if these obligations are not met, other industrial interests de pending on the railroads will be in juriously affected as well as the railroads The probabilities are that for long time to come Amerl- can securities will not find market in Europe All surplus capital of that continent will be required for some years to replace the destruction of property and to repair the =ravages of war Nor is this all For they shall likely have to repurchase the large share of the nearly $5.00o ,009.- 900 of American securities which are now held in Europe. This will throw upon our own people the burden of if nancing the railroad requirements for an indefinite period, and if the rail roads are not to be driven upon the rocks of bankruptcy and of deteriora- tioa, they must have the kindly co operation and friendship of the public and our law making bodies as never before.
 Pres. Bush continues to state that it has long been known, that with good crops and prosperous times, the railroad revenues have been made quate to meet the requirements, 70 sound credit with the bankers, or to raise money for im- proyements To care for expanding commerce. He states that The reduc- tions and burdens caused by Fed- eral and Stare legislation, increased taxes, increased cost of materials aud expenses Of labor. have SO de creased the net earnings that maHy carriers are left without means to meet the mortgage interest This causes d loss of credit which pre- vents them getting new money 10 make Improvements.
 Pres. Bush states that the gross earnings of United States railroads for the year ending June 90 19l4, is $44 100000 less than for the year ending June 90, 1918. while the ex- penditares were $76.ooooQ0 more, and the net earnings for 1914 were $l2o,-