The Denison review. [volume] (Denison, Iowa) 1867-current, 1914-12-23
CRISIS C0NFR0NTS
THE RAILROADS
European War Has Closed the Money
Markets of Foreign Countries
to Them Indefinitely.
pREsIDEN WILSON GIVES VIEWS
Railroads Have Lost Millions of DOL
lars During Past Year, Render.
ing the Situation Serious.


In view of the fact that the rail
roads OF Iowa will, in the near future
He an application for increased rates
1t is their desire to utilize this oppor-
tunity for a general discussion of the
leading phases of the railroad ques
ton with the people OF the entire
state. TO this end, the careful atten,
ton of the reader is invited to a Sc
ries of articles which will appear il,
this newspaper during the next few
weeks, and which will contain the
frankcst discussion OF this great prob.
lem that has ever appeared in the pub
lie press. All that is asked in the
meantime is that the people of Iowa
accord to the railroads the courtesy
OF listening to their side OF the story
and then form such conclusions as, in
their Judgment, the facts warrant.
That the railroads of the United
states are today confronted by the
%ravcst crisis in their history there is
not the slightest question. For some
years they have been desperately
struggling with an ever increasing
cost of operation in the face of reduced
freight and passenger rates-but seri-
GUS as this situation was before, the
European war. which has indefinitely
closed to them the foreign money mar
kcts, has suddenly brought them face
to face with q situation which threat
ems not merely many new receiver
ships, but the actual paralysis OF the
entire transportation industry OF the
nation. 1t was this state OF affairs
which compelled the closing OF the
New York Stock Exchange some
months ago. What will happen in the
future. the future alone can tell.
American railroads are valued in
round figures at twenty billion dollars.
and of this vast sum nearly five billion
dollars worth OF securities are held
abroad. Should Europe. in its frantic
struggle for funds, seek to convert
these securities into cash during the
next twelve months. where is the
money to come from with which to
buy them?-and failing to protect
these securities, what decentralization
will follow not merely in railroad in
vestments, but in all other American
industrial values as we'll? The recent
statement OF David oydGeorge,
chancellor of the exclequer, that the
inability of Englshmen to convert
their American investments into cash
is Gripping Great Britain in it's pres
ent emergency is ominously signifl-
cant. Possibly the New. York stock
exchange may be able to resume and
continue operations without acute dis
aster-but that the finances not mere
ly of the United States, but of the
world will be subjected to a strain
without precedent in history during
the next year or two is SO apparent
that it requires no extended comment.
In Il future article this phase OF the
question will be dealt with more fully.
President Wilson's Views.
That the situation is profoundly SER
ious is manifested by the recent ut
terance OF President Wilson to group
of eastern railroad executives. In his
letter to Mr.. Trumbull of the Chesa-
pcake 4 Ohio he said:
You ask me to call the attention of
the country to the imperative need
that railway credits be sustained and
the railroads helped in every possible
way, whether by private cooperative
effort or by the action wherever feas-
ible OF governmental agencies, and |
need is very real
"1hey 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.
II am confident there will be earn
est and active cooperation in this
matter. perhaps the one common in
tcrest of our whole industrial life
Undoubtedly mel, both in and out
of official position. will appreciate
what is involved and lend their aid
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 its behalf,
and am glad to join you in calling
attention to it. This is time for all
to stand together in united effort to
comprehesd every interest and serve
and sustain it in every legitimate
way"
Again, in his recent letter to Secre
tary McAdoo on the new banking law
he used the following language:
'"rhe railroads OF the country are
almost as much affected (by the war;
not so much because their business is |
curtailed as because their credit is |
called in question by doubt as to their
earning capacity. There is no other
interest so central to the business well |
fare of the country as this. No doubt |
in the light of the new day, with its
new understandings. the problem of
the railroads will also be met and |
dealt with in spirit of candor and |
Justice
Like utterances have come from |
scores of other prominent public men |
and financiers during the last few |
who are above making a |
selfish plea for any private or cor
porate interest and whose sole desire |
is that American business shall |
emerge from the present precarious
situation without disaster. Under these |
tanceS it is the mereSt folly |
for any citizen to treat the present |
crisis lightly or tlippantly, for we are
passing through a period in which the
financial resources OF every nation i'll
the world will be tested as never be-
fore.
Railroads Lost Millions.