Mexico weekly ledger., 1914-10-01
.GRAvEST CRISIS
In History Confronts the American
Railways Owing to Terrible Eu-
ropean War
NO FOREIGN MONEY NOW
The War Has Closed the Financial
Markets of Europe to Railways In
definitely

The European War has suddenly
brought American Railroads face to
face with the gravest crisis in their
history. With greatly diminished re-
ceipts and an ever-inereasing cost of
operation their condition was precari-
GUS enough before-but now, with the
financial markets of England, Germa-
ny, France, Austria, Belgium and
Holland indefinitely closed to them,
it means that they must henceforth
finance all their requirements within
the United States. Not only that, but
in their frenzy for ready gold these
countries are frantically seeking to
dispose of big blocks of the nearly s
billion dollars worth of American rail-
road securities which they now hold.
1t was this dumping" process which
forced the closing of the New York
Stock Exchange some weeks ago.
When 1t will be able to open its doors
again, no man dares prophesy--but
when it does it will unquestionably
tax our resources as never before not
only to maintain the integrity of our
railroad securities, but all other class
es of industrial investments as well.
President Wilson's Views.
So grave is the situation considered
that some days ago a group of East
ern railroad executives laid the mat
ter before President Wilson. After lis
tening to their plea the President die
tated a letter to Mr.. Trumbull Of the
Chesapeake & Ohio Board in which
among other things he said:
"You asked me to call the atten-
tion 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
ative effort or by the action wherev-
er feasible of governmental agencies,
and am glad to do so, because l
think the need is very real.
"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
stitutions.
81 am confident there will be earn
est and active cooperation in this
matter, perhaps the one common in
terest of our whole industrial life.
Undoubtedly, men, both in and out
of official position. will appreciate
what is involved and lend their aid
heartily wherever it is possible for
them to lend it. But the emergency is
in fact extraordinary and where there
is manifest common interest we ought
all Of us to speak out in it's behalf,
and | am glad to join you in calling at
tention to it. This is the time for all
to stand together in united effort to
comprehend every interest and serve
and sustain it in every legitimate
way"
Railroads Lost Millions
The net operating income of the
railroads of the United States for the
wear ending June 20. 1914. was $780,
100000 less than for the previous
wear. The gross earnings for the year
were S44 600 600 less than for 1913
while EXPENSES and taxes were S76,-
600 600 more. But heavy as this
burden was before, the great struggle
across the seas, carrying in its wake
the destruction of untold hundreds of
millions of dollars worth Of all kinds
of property, renders the situation a
thousand fold more serious. 1t means,
in short, that for a number Of years to
come Europe will have no surplus mo-
ney for investment in the United
States or elsewhere and that, as has
been stated before, our railroads will
have to finance their future needs at
home. How herculean this task will
be may be judged from the fact that
the bond and not obligations which
will mature between now and the end
Of the next year and which the rail-
roads will have to meet in some way,
amount to more than $563, 100000
and this doesn't take a dollars worth
of new improvements or betterments
into consideration. These are obliga-
tions which were incurred in the past
and which must be met as they fall
due if the transportation companies
are to be preserved from wholesale re
ceiverships and ruin.
Map;festlv therefore American in.
vestors b;o and little. will have tc
come 70 the rescue--and before the,
will consent to do this American rail
road securities will have to be re-es
tablished as a sound, respected anC
paying investment-and this, on thu
present basis of railroad earnings il
impossible. Believing therefore tina
the impending crisis demands that th'
railroads frankly and openly lay thi
whole complicated problem before tn
people-that they have a heart-to
heart talk with the farmer, the mer
chant and the banker on the entir
railroad question, the careful atten
ton, of the reader is invited to Sc
ries of articles which will appear i
this newspaper during the next fey
weeks. All that is asked is that yo
read with an open mind the facts an
figures presented, which are largel
taken from the records of the Burea
of Railway Economics at Washington
d. C. The rest will be cheerfully LEI
to your sense of what is right an
fair.
Farmers vitality Concerned.
Especially is it to be hoped tina
farmers whose market facilities an
land values are so vitality affected b
the railroads will follow these art
cles carefully for Agriculture is tn