New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-15
COMMERCE BOARD
NOW INADEQUATE
Railways Face Disaster,
Says Stock Exchange
Governor.
RATE CASE VICTORY
WOULD MEAN LITTLE
EurOpe's Demand for Gold Here
Brings Out Extravaganza
of United States.

Rochester, Nov. l4.-Speaking on the
general subject of "The War and Wall
Street" before fne City Club here TO-
night, William c. Van Antwerp, gov-
ernor of the New York Stock Exchange
and writer on economic topics, declared
that the Interstate Commerce Commits
sion had served its purpose and that in
the future there must be an entire
change of control of the railways or
else the country would face a disaster
(which would shake the solid bedrock
of the nation itself" The only hope
of a restoration of railway credit, he
said, was in n transfer of the commits
sion's authority to other hands.
1.-THE 8 per cent increase in freight
rates asked by the Eastern roads," he
said, "may be dismissed as negligible.
One must look further for the solution
of the problem.
First there must be no increase in
taxation. Second, federal regulation
superimposed on state regulation must
cease. Constitutionally. Congress has
paramount authority over interstate
commerce, and by its action can abro-
gate any previous action of the states
which may prove inconsistent there
with Third. the railways must be
a
der the jurisdiction of an authority in
which business men, railway men and
public spirited citizens predominant to
the exclusion of politicians. This form
Of administration in its system and
method might well be modelled on the
general plan Of the federal reserve act,
dividing the railroads into geographical
districts governed by boards.
"The railways of America are to-day
praying for relief literally on their
knees. Without relief they will be on
their backs, and when they are on their
backs there will be more trouble in
this country than you or I care to con-
template. II will not suffice 10 say that
the situation is one Of difficulty; II is
one of the utmost gravity"
Praise for Bankers.
Mr.. Van Antwerp had great praise
for the way the bankers had handled
the situation produced by the war. 1--WE
alone among the nations he said,
began TO pay as best we could the de-
mands upon US, and paid in gold, while
nobody paid US. The wonder is not that
we had difficulty in paying, but that
we paid at all. And yet since the war
began we have paid or arranged to pay
$4,000, 900, and in the calendar year
to date more than 5000 900 ,000s store
of gold exceeding the entire holdings
of the Bank of England. No other ma
tion would have done it; no other could
have done it,"
The net annual debt Of the United
States to Europe, as estimated by Sir
George Paish, said Mr. Van Antwerp,
was s600.000000. II was well under
stood that Sir George came over here
TO collect or arrange for the collection
of a part of this debt. ave had always
known that we owed il, but Europe had
never exercised its power TO collect il,
finding it more profitable TO buy our
good securities than 10 withdraw our
gold. Like spendthrifts, we as ma
ton had thus continued to pile up our
obligations with careless indifference
to consequences. When, therefore, Sir
George had explained that Europe
could no longer buy our securities and
that a drain upon our gold resources
was inevitable gentleman who had
listened TO him stated the case exactly
when he said, The Sheriff, with a writ,
is on the doorstep"
So far as members Of the Stock EI-
change were concerned, said the
speaker, LncTc was 10 reason why DUST
ness should not be resumed. They had
cleared up their balances and strength
ened their loans to an extent which had
put them in readiness. Through com
mittees more than S100,000,000 of
bonds and 100000 shares Of stock had
changed hands since the exchange
closed, and more than S100,000,000 OF
untitled contracts had been liquidated
without adding to the brokers' borrow
ings at the banks. But 10 reopen the
exchange while the credit market is
yet in an abnormal condition would
result in the establishment of unfair
prices, which would cause hardships to
innocent investors. ANOTHER reason why
the exchange should stay closed for
some time longer was that Europe
would undoubtedly make heavy sales OF
securities here, and because those Sc
curities would not be paid for in gold
other ways of paying for them would
have to be devised. Those ways were
still under consideration.