The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-10-02

showing how risks burn the causes OF nre
and the values involved.
II will then be possible to show those
who have ideas regarding the altitude OF
IRE insurance rates Just how they are
made up and why.
There has been q Discrimination Of the
various prominent companies to sub
scribe TO ne cIasslncation idea so far
as its general use Is concerned. sEacn
large company has had its own classiflca-
ton and could and can give history at
any time Of its experience on different
classes Of risk. Now that this method
viii be uniform and at the disposal OF
the public It Is thought that there win
be a change in the attitude OF the pub
lie toward the whole subject OF fire I'M
derwriting.
Railroad Can't Net Coupons.
]. W. Brown, president Of the Maryland
and Pennsylvania Railroad Company,
which runs between Baltimore and York
Pa. announces that the company will not
meet the coupons due October 1 on the
income bonds. There are about 500. 900
of the issue outstanding The income
for the six months was not sufficient to
meet the interest.
President Brown in a statement said:
The company has shown for a num-
Der Of years a very satisfactory Increase
in traffic. The expense Of handling traf-
nc, however. grew very heavy and the
operating officials stated that this was
due TO lack Of funds for capital improve
ments and for rehabilitating the prop
erty.
Funds were made available to the
company and extensive improvements
have been made to the property, but
the company did not show any improve
ment In earnings during the last six
months period. The operating officials
claim that the improvements have not
been in operation long enough for the
company to feel their effect during the
period referred to, and this Is borne
out to a considerable extent by the fact
that a substantial reduction was shown
in the operating cost during the last
month"
EnEland's Idle Funds.
Money is accommodating in England at
a very great rate. Leading international
bankers say that the accumulation Of
idle funds is far more than an onset to
the cost Of the war. England's opera
tons In the field are by no means crush
ing, from the standpoint Of expense, be-
cause, considering the number Of German
troops, Great Britain has comparatively
few soldiers engaged in the war, and
cept for the possibility of insignificant
damage from the dropping Of bombs by
Zeppelins. The funds which are being
accumulated in London will not remain
idle indefinitely, and bankers believe that
the time is not far OF when a substan-
tial portion of the funds will be loaned
in this country.
1t is argued that the moral effect Of
gold exports at this time. in restoring
British confidence in the soundness Of
the American financial situation. would
will meet their forETAOINETAOINU
be great. Bankers say that IL it is fully
that Americans can and
will meet their foreign obligations in
gold, the foreigners will lend additional
funds here, instead of drawing home
what is now owing TO them. 1t would be
good business for them to lend money in
the United States under the conditions
now prevailing here This would be done
promptly could England feel certain Of
an early German defeat.