The Barre daily times. (Barre, Vt.) 1897-1959, 1914-10-22
RISE MIGHT
SAVE MARKET
Was Argument Used by the
Railroads Seeking the
Rate Increase
EUROPE MAY FLOOD
THE EXCHANGES
If Protected by Better Earn
ings, Possibility Would
Be Avoided

i Washington, D. G., Oct. 22.--State-
ments of Sir George Paish, the English
financial expert here to discuss with the
treasury officials questions of foreign ex-
change arising from the European war,
were laid before the interstate commerce
commission yesterday in support of the
plea of eastern railroads for a general
increase in freight rates.
Frederick w. Straus, New York
banker. testified Sir George had told him
| yesterday he was anxious that Ameri-
can railroad securities held In England
should not be thrown upon the market.
Mr.. Strauss urged that railroad seouri-
ties must be protected by greater earn
ings for the roads if they were TO be
made so desirable to European investors
that they would not be unloaded when
the stock exchanges were reopened
Commissioner Clements, who presided,
with Commissioners Clark and Meyer,
asked the banker if he believed the ship
per should be compelled to guarantee all
railroad securities by paying higher
freight rates. although it had been
shown many such securities were issued
for purposes of negotiation without re.
gard to the welfare of the property.
"If this were merely question of pro-
teeting railroad investors without rele
yaney to shippers, | would not be here,
the witness said "The investor must
take his chances"
Then at any time in the future, no
matter for what cause, if the need of
money and improvement of credit might
be a. great as now said the commits
sioner, sit would be another sufficient |
reason for advancing rates"
4 don't assent TO that" said Mr.. |
Strauss. Each emergency must be
treated by itself. This present emer
gency is so vast, the greatest the coun
try has ever known, perhaps the great
EST il ever will know, that immediate re-
lief. part of which this commission
IAN afford, must be had
Commissioner Clark reverted to 1
statement that il the advance in rates
we're granted now and later il were
.ound it was unnecessary 10 continue tho
higher figures. The commission might re-
foke its assent and restore "just and
rates. Mr. Strauss said that
le believed such restoration should not
,e made only because the emergency had
,assed but on the basis of what might
hen appear Just and reasonable"
igure.
Commissioner Meyer asked what was
meant by an innocent" investor several
lines referred TO as deserving protection
" the government. Mr.. Strauss said he
i'd not know where the phrase had orig
mated or what guilty" investor might
".
you would not suggest" pursued
Commissioner Meyer that this com.
lission should advance rates in order
hat these 'innocent investors might get
II the money out Of their investment
ney thought they would get'
louis ID Brandeis. special counsel for
1e commission sought 10 amplify the
lggestion that impairment Of credit
broad might rest upon questionable
ethods Of finance disclosed among
merican railroads in some instances
e sought an expression OF opinion
ON Mr. Strauss as 20 whether he be-
eyed IL 10 b. the obligation Of eN-
ianges aud bankers associations 10 see
az credit was maintained by prevent.
2 irregularities in the issue Of secur-
es The witness said his own associa.
IN was not organized for that purpose
IA that the exchanges lack necessary
quisitory powers.
Clifford Thorne. representing numer
Is shippers' organizations, sought 20
oN that English railroads had not
On granted any increase in rates 20
utect their own securities. Mr.. Strauss
ofessed 10 have no personal knowledge
that Tie sid he had called on SIR
.orge Paish 90 inquire a. 90 the At
ude OF British investors toward
nericsn railroad securities and had
en- informed that while disclosures Of
Insartions such a. in tho New Haven
= undoubtedly affected confidence the
re- important considerations bringing
but . feeling 81 insecurity were the
me costs II the carriers ard increased
gation
Replying % Mr Thornes questions. x
. banker admitted that good railroad I.