New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-25
Bankers Think Interstate
Commerce Commission
Will Help Roads. 4
EMERGENCY NEEDS
PROMPT ACTION
Abnormal Conditions Weaken
ing Securities and Affecting
Small Investors.

Behind the inquisitorial attitude of
counsel and certain members of the In
terstate Commerce Commission toward
those who argued for a per cent in
crease in freight rates for the rail-
roads at the rchearing Of the Eastern
rate case in Washington In the last
week. members of the Investment
Bankers Association of America. who
returned to this city yesterday, saw
not a blind prejudice concerning the
emergencies of the present situation,
but a desire to get all the information
possible in the short time allotted for
the presentation OF the case by both
carriers and shippers.
Lawrence Chamberlain, Of hountze
Brothers, and a member of the associa-
ton, while not attempting TO predict
any definite outcome of the case, was
hopeful that the commission would
render a decision favorable to the car
ricrs In his testimony before the COM
mission. Mr. Chamberlain, on cross
examination by Clifford Thorne, repre-
senting several state commissions ana
shippers, brought out some interesting
facts on the relative yields OF railroad
securities as compared with other
forms of investment. When asked to
give his reasons why he believed the
Eastern railroads would get an advance
in freight rates, Mr.. Chamberlain sald
yesterday:
an its consideration Of the ar&-
ments which were presented Tor an IN
crease in tariffs the commission surely
will not ignore the statement by fresl-
dent Wilson several weeks ago thaV
they are entitled to fair treatment III
view Of the situation which has arisen
as a result Of the war IN Europe ne
commission doubtless will also take
into account those emergency measure
that have been created that IS lne
creation Of the Sl0O,OOO,OOO gold poor
TO relieve the foreign exchange deau-
lock. and the fund which should soon
be available 10 hold the surplus coI'o"
crop for better TriceS.. ,u..J.
"The emergency which the ialiroauS
are facing is just as neediul Oh I'M
mediate solution as these Pr0DleinS'
The committee representing the IN
vestment Bankers Association went 10
Washington, not TO hold any brlel ior
the railroads directly, but with SIN
cere desire to put before the conlnils-
sion q clear statement OF tacts as IhGy
exist in the railroad investment held
to-day. s.-,.. ...o
"The Eastern advanced freight rate
case is one that is Of prime Importance
to all institutions that get their income
from the small investor. AS an IN
stance. statistics show that one mem
Der in every other family IN the United
States is a savings bank deposltor;
Also the life insurance companies ana
many educational institutions are de-
pendent for their existence IN a large.
degree on their investments IN railroad
securities. II the value Of these secu-
rites is further weakened by the with
holding of aid to the railroads at TINS
time the effect is apparent.
"These conditions are surely recog-
nized by the Interstate Commerce Com
mission. IL was apparent at the hear
incs last week that there was doubt IN
the minds Of some Of the members as
to their constitutional right to grant
an increase in rates just because an
emergency has arisen. AS other cmer-
pcncics are being taken care or by
other departments Of the government,
II only seems reasonable TO suppose
that the commission can and Will eNer-
else broader powers than those eXer-
cised in normal times"
A governor Of the Stock Exchange
who attended the hearing said yester-
dav that he, too, believed the advance
would be granted. The railroads, he
said, presented a strong case, and on
the evidence higher rates would seem
assured.