Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-21
Statements of Sir George
Paish Laid Before Interstate
Commerce Commission.
PROTECTION FOR RAILROAD
SECURITIES RECOMMENDED
F. w. Strauss, New York Banker,
Declares Present Emergency Great
est Country Has Ever Known.

Statements of Sir George Paish, the
English financial expert here to dis
cuss with Treasury officials questions
of foreign exchange arising from the
European war, were laid before the in
terstate commerce commission today in
support of the plea of the eastern rail
roads for a general increase in freight
rates.
Frederick W. Strauss, a New York
banker. testified Sir George had told
him today he was anxious that Ameri-
can railroad securities held in England
should not be thrown upon the market.
Mr.. Strauss urged that railroad Securi-
ties must be protected by greater earn
ingS for the roads If they We're to be
made desirable to European inves-
tors that they would not be unloaded
when the stock exchanges were re-
opened.
Commissioner Clements. who presided
today, associated with Commissioners
Clark and Meyer. asked the banker II
he believed the shipper should be COM
PEELED to guarantee all railroad securi-
ties by paying higher freight rates. al
though it had been shown many such
securities We're issued for purposes OF
negotiation without regard to the well
fare of the property.
Investor Must Take Chances.
IF this were merely a question of
protecting railroad investors, without
relevancy to the shippers, / would not
be here the witness said. The inves-
tor must take his chances"
Then at anytime in the future, no
matter for what cause, If the need of
money and impairment of credit might
be as great as now" said the commits
Sioner. lit would be another sufficient
reason for advancing rates.
Il do not assent to that, said Strauss
Each emergency must be treated by
itself. This present emergency is so
vast. the greatest the country has ever
known. perhaps the greatest it ever
will know. that immediate relief, a
part of which this commission can at
lord. must be had
Commissioner Clark reverted to a
statement that if the advance in rates
were granted now and later it were
found it was unnecessary to continue
the higher figures. the commission
might revoke it's assent and restore
lust and reasonable" rates. Mr.. Strauss
said that he believed such restoration
should not be made only because the
emergency had passed, but on the basis
of what might then appear Just
and reasonable" figure.
Commissioner Meyer asked what was
meant by an innocent investor, sew
eral times referred to as deserving pro-
lection by the government. Mr.. Strauss
said he did not know where the phrase
had originated or what guilty" in
weston might be.
Entitled to Protection.
You would not suggest" pursued
Commissioner Meyer. that this COM
mission should advance rates in order
that these innocent investors might
get all the money out of their invest
ment they thought they would get?"
Certainly not" answered the witness,
but he added that since this govern
ment was committed to a policy of gov
eminent regulation of railroads, it must
accord investors in railroad stocks or
bonds a measure of protection. Other
wise naturalization of railways must
follow. he said.
No condition confronts American rail-
roads as a result of the European war or
any other cause that does not equally af-
feet every other American industry, ac-
cording to the contention of counsel for
shippers and shippers associations yes
terday. This contention was the basis
for rigid cross examination of witnesses
called before the commission by the east
ern railroads to support their petition for
relief through general increase of at
least > per cent in freight rates.