Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-07
RA|[WAY OFFICIALS
TO MEET PRESIDENT
AI|ege That Existing condi-
tons in the Country Men,
ace Business Prosperity.

Conditions that menace the prosper
ity of the nations railroads are to be
described Wednesday when President
Wilson is to meet the presidents of a
number of the country's biggest rail-
way systems The railroad men are
coming armed with statistics which, it
is stated, show that the problem of
American financing of American rail-
roads without the hope of such aid as
has been previously given by Europe
is a. huge one.
Figures which nave been compiled by
the bureau of railway economics for
thirty-f five of the eastern roads. cover
ing operations for the year ended June
80 last, it is declared, show that the
operating income of these roads was
s273,S00.963. which is $74.O02.5S1 less
than for the fiscal year 1918. and $685.
205.182 less than for the fiscal year
that the operating income for 1914 is
81 per cent, or over one-fifth, less than
for 1912.
Total Of Defaults.
A complete list of railroad securities
said to be in default will be presented
to the President. The total shown in de-
faulted securities is S57S, 672. 956. Maturi-
ties left to be met yet in 1914 total
$S4, 05OOO0. A list of railroad securit es
falling due in 1919 also will be presented
totaling 1854 424. 500. With equipment
trust maturties for 1915, bonds and notes
maturing in 1914, and equipment trust
maturities in 1914 the total maturities
which much be met from now until the
end of 1915 is said to be 1868. 1J6.Su0.
1T is not merely a question of paying
dividends on stocks or interest on bonds,
the brief of the railroad men will say.
but a question OF conserving the very
existence of the roads themselves. Car
riers must maintain their property in
good physical condition in order to handle
the shipments of freight which are neces-
sary to the life of the country and to its
commercial existence; they must also
safeguard the lives of passengers and
expedite transportation from one point to
another. More than that. they must
obey not merely the federal laws and
the rules of the commission. but the laws
of all the different states which their
traverse
Effect Of War in Europe.
1.-The war in Europe has done three
things: 1t has closed Europe as an invest
ment market for American securities, not
only for the present. but for indefinite
liquidation of American securities held
abroad to an extent that threatens us
with the necessity of repurchasing from
Europe large part of the $4,000, 0OO, O0O
of our securities
The war will also throw upon the peo-
pie OF this country the burden of finan-
cling future railroad requirements, and it
requires no prophet to foresee that the
problem Of absorbing securities hereto
fore issued and held by foreign investors
plus the problem of financing domestic
requirements other than those of rail-
roads. confronts the American public with
A staggering burden.
There are in America today 10000 600
bona fide investors in American railway
securities. and 100000 more are indi-
rectly affected through their holdings of
insurance policies and deposits in saw
lngs banks because the investments of
these institutions are bottomed upon rail-
way securities