Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1914-12-04
BANK PANTCS NOW
THING OF THE PAST
Governor Hamlin Of Federal Reserve
Board Sees Smooth Sailing
Ahead.
REA ON TROUBLES OF RAILROADS
president of PennsyIvanIa Company
Says Increased Cost Has More
Than offset Economics of
Larger Hauls.

NEW YORK, Dec. s.-Panic due IN dis
trust of banks, has been relegated to the
museum of antiquities by the new hank
ing system. in the opinion OF c. s. Ham
lin. governor Of the federal reserve board.
voiced this afternoon in speech before
the New York Chamber of Commerce.
The federal reserve system will rele-
gate to its proper place. the museum OF
antiquities. the panic generated by dis
trust in our banking system. leading TO
a struggle OF self-preservation between
bank and bank and Individual and in
dividual, and ultimate boarding by the
people," Mr.. Hamlln asserted. such
boarding usually follows boarding by the
banks and does not precede It, II hoard
ing by banks should cease, boarding By
individuals would never occur, and both.
believe. will be relegated to obscurity
under the federal reserve system"
Mr.. Hamlin did not think that all panlcs
would be done away with of necessity by
the new system.
IF In the failure business expands I'M
duly under the spirit of speculation the
day OF reckoning will surely come i'm the
future, as II has in the past" he said.
For welfare of Public.
thorship of the federal reserve act can
say with confidence that no selfishs in
terests assisted at It's birth. can further
say that beyond those primarily RESPONSE
BILE for its provisions-Mr. Glass and
others of the house. Senator Owens and
others of the senate, and the secretary
of the treasury-there looms up one figure
more entitled to the credit for its provi-
sions than any of the others. the man
primarily responsible-President Wilson"
Railroads Live ON Hope.
Samuel Rea, president of the Pennsyl-
vania railroad. asserted that the eastern
railroads earned less than 4 per cent
during the last year upon the money i'm
vested In them. This serious condition
is not new, but it is now acute" he
said. I'VE have been living on hope
at least since 1910. when the downward
trend was clearly indicated; how much
longer we can exist on that precarious
asset, l will not venture to say, except
to suggest that it takes more than hope,
advice or enthusiasm or all combined, to
pay wages and taxes, provide satisfactory
service, pay dividend and retain a proper
credit basis TO obtain capital for i'm
provements and extensions.
Increased traffic will not cure the
railroad malady, for remember that up
to the present ell their economies and
efficiency. obtained by increased train
loads, etc, have been offset by increased
costs, wages and taxes. These companies
therefore, need not merely the very mod
crate increase in rates for which they pc
titioned the Interstate Commerce COM
mission. but also all the revenue that car
DE secured by working out in practice the
various other means suggested by the
commission for increasing revenue"
ConamissiOu Overburdened.
zone trouble in the present situation
said Mr.. Rea.. lis that the Interstate
Commerce commission has been overbur.
dened with work and with responsibilities
many OF which must be transferred to a
large corps of subordinates. so that in
many instances, direct consideration by
the entire commission is impossible. The
work of the Interstate Commerce commits
sion, as originally designed in 1887, was TO
prevent unjust discrimination in rates or
service, to see that rates were reason
able, to obtain publicity OF railroad rates
and practices. prescribe uniform railroad
reports and primarily act as a referee
between the public and the railroads. The
commission was given limited, but well
defined powers within reasonable scope
Now, however as the result of new laws
the scope OF its control OF railroad oper-
ations and development has been largely
extended. 1t could materially assist rail-
road development. but so far II has
proven impossible for seven men in one
center TO act not merely as regulators
but as administrators Of the railroads
leaving the financial results and responsi
bility OF that administration TO be borne
by the companies and their owners