Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1914-09-25
RAILROADS ARE
facing CRISIS
President Wilson Indicates
in Letter He Fully Appre-
ciates Situation.

Railroads Innocent Bystanders'
1 was the heading of brief editorial in
yesterdays issue of The Graphic re-
ferring to the difficulties of the roads
as a result of the European war
which seems to have created among
readers a desire for more information
on the subject.
; Recently committee of railroad
executives presented the railroad stu
alton to President Wilson, who evinc-
ed keen interest in the matter. The
railroad committee, composed OF
Frank Trumbull Samuel Rea, Daniel
Willard, Fairfax Harrison, E. P. Rip
ley, Hale Holden and A. J. Earring,
showed that. the American railroads
face perhaps the gravest crisis in
their history.
The financial markets of England,
Germany, France, Austria, Belgium
and Holland have been Indefinitely
closed to them as source of money
supply, and in addition to this is the
further calamity that many foreign
holders Of American railroad securi-
ties are vainly trying to realize what
ever cash they can get out of them.
1t was this dumping" frenzy which
caused the closing of the New York
Stock exchange some weeks ago.
| The note and bond obligation which
American railroads must meet be-
! tween now and the end of next year
amount to over 1868 900 and this
burden is all the heavier when it is
considered that the net operating iu-
come for the fiscal year ending June
80, 1914, was s120,0O0,OOO less than
for the previous year. Gross earn
ings were also $44,O00,O00 less, while
, the increased cost of operation and
taxes was $76,000,00O more. In a
word, with the financial markets of
Europe closed to them, it means that
! from this time forward the railroads
will have to finance all their needs
here in the United States, or go upon
the rocks. Manifestly the only way in
which American investors can be per-
suaded to put their money into rail
road securities is to make those in
vestments safe and sound and to this
end, the transportation companies will
have to have the friendship and coop
GRAFTON of the people and the different
rate making bodies as never before
So grave is the crisis considered that
some days ago group of prominent
railroad executives laid the matter be-
fore President Wilson, with the re-
quest that he render whatever legiti-
mate aid lies within his power. After
listening to their plea the president
{. dictated the following letter to Mr.
Trumbull Of the Chesapeake & Ohio
board: 4
Presidents Letter.
Dear Mr.. Trumbull:
"Since you read it to me yesterday
I have read again the statement you
made on behalf of the committee OF
railroad president whom l had the
pleasure of meeting and comforting
with at my office 1t is a lucid state
ment of plain truth.
"You ask me to call the attention
of the country to the imperative need
that railway credits be sustained
and the railroads helped in every pos
sible way, whether by private cooper
alive effort or by the action, wherever
feasible Of governmental agencies, and
I am glad to do so because 1 think
the need very real
SAlAuOt Gay tAdk L CutCIIdlu ally
deep anxiety about the matter, except
of course, the general anxiety caused
by the unprecented situation of the
money markets of the world; because
the interest of the producer, the ship
per, the merchant, the investor, the
financier and the whole public in the
proper maintenance and complete eff
ficiency of the railways is too mani
fest. They are indispensable to our
whole economic life, and railway Sc
curities are at the very heart of most
investments, large and small. public
and private, by individuals and by in
situations.
| II am confident that there will be
active and earnest cooperation in
this matter, perhaps the one common