The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-09-03
RAILROADS plan
STARTLING MOVE
Would Get Increase Of Rates With
out inquiry and Authorize Flank
Movement in High Finance.
Incident to War.
APPEAL TO CONGRESS
Iowa Bankers Have Received Letters
From Eastern Stock Brokers
Outlining the Latest
Movement.

DIES MONIES, Aug. 25.-A very un-
usual and startling move has been
started by the railroads OF the east
in the per cent rate raise case. 1t
is movement to compel the inter-
state commerce commission to reopen
the case and reverse its judicial de-
cision on command OF congress, and
to authorize flank movement in
high finance incident to war.
A number OF the leading bankers
Of Dss Aoines, and presumably OF
Iowa, have received a letter from a
firm Of stock brokers In New York
outlining. this latest movement. The
firm claims to have sent the letter to
$4,000 bankers in the United States,
asking them to bring political pres
sure on members of congress to favor
. congressional decision that the b
per cent raise is the right thing at
this time. The bankers are urged to
write to congressman and to have
their customers among the large
shippers also write members of con-
gress urging passage of concurrent
resolution directed to the interstate
commerce, requesting Il, because of
the emergency situation with refer
ence to railroad securities, to review
and revise the decision In the recent
application OF the eastern railroads.
and In their discretion and in view
of the great and extraordinary neces-
sity for this action, to promptly grant
further and adequate advances to all
railroads.
Blanket Advance Without Inquiry.
II is thus proposed 10 not only
cover the eastern territory where con-
ditions have just been reviewed, but
also the western territory where pre-
parntion is under way for a rate case.
and the southern territory. and to Sc
cure blanket advance in rates with
out an inquiry. Il
This would be a much easier way
than to make showing before the
commission as to the reasona blenass
OF the proposed rates or by the in
direct pressure method which was
tried ont without success this year.
In view OF the factlthat at least eight
OF the midland states. officially. by
and through their elected commits
sions, opposed the eastern rate raise
without Investigation. it is probable
that the congressman from these
states would hesitate to fall in with
the new plan for affecting raise in
rates.
The statement OF j. s. Bache. Il
Co., Of the New York stock exchange,
as made to the bankers, is that the
advance which was granted in the
recent rate the local raises in
: Central Freight association territory
lis not more than enough to In
crease earnings of the railroads one
eighth OF one FER cent on the total
capital OF the railroads making the
+ application. and this small advance
will have no effect in restoring and
establishing the confidence of the
large investors here and the holders
of securities , abroad" Paragraphs
In the letter OF the brokers are as
follows:
European War az an Excurse.
Owing to the great European war.
our financial situation is under an
emergency pressure, because threat.
ened by the unloading OF railroad Sc.
curities held by Europe. Other Sc
curities are in disfavor because of
low railroad earnings. They should
1T once be made attractive to capital
all over the world. This cannot be
done unless our railroad securities