The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-22
BANKERS !.
FAVOR RATE INCREASE
Contend This Is Greatest Thing That
Can Be Done to Relieve Situ-
alton Psychologica1ly.
TESTIMONY BEFORE THE 1. G. O
Granting Of Petition Of Railroads.
Showing Change in Attitude OF
Commission. Would Have Favor
able Effect on Fore.gn Investors.

WASHINGTON, October 21.-Inycst-
ment bankers arc urging that the In
terstate Commerce Commission grant
for o per cent increase in freight
rates because of the psychological ef-
feet change in tho attitude of the
commission toward the railroads"
would have on foreign investors in
railroad securities This was the testi-
mony of Lawrence Chamberlain. a New
York banker who appeared for the In
ves,ment Bankers Association at TO-
days session of the rate hearing.
This question ought TO be settled.
not on the basis OF the railroads and
shippers" Mr.. Chamberlain asserted.
but on the contention of the bankers
that the country needs saving. Raising
rates is the greatest thing that can be
done to relieve the situation psyche
logically"
rs it the general understanding of
the bankers asked Commissioner
Clements. that this commission has
carte blanche to do anything it wants
TO do to meet psychological condition?
We had supposed this was n govern
ment of law; not of the caprice of a
commission"
we VIII take no other position In
any brief we nleu in this case" hastily
intSrposcd Morris Rosenthal. counsel
for the intervening bankers. we make
no other contention"
You will. if you follow the lead of
circulars the bankers have been send
ing out" answered Commissioners Clark.
TESTIMONY OF BANKERS
CONSUMES ENTIRE DAY
The entire day was devoted to near.
MT.
oss-GNamination of Frederick Straus
was concluded. the witness rccitinE
facts tending to show that railroad
bonds were the standard of American
securities abroad, and that they were
falling in favor because of Increased
Straus quoted Sir George Paish rs nu-
thority for his statement that English
investors found American railroad Sc
curities less and less attractive.
Mr.. Chamberlain produced n chart to
show that the credit of the nation. as
represented by it's banks, had closely
paralleled the price OF railroad bonds
up to 1910. at that time. he said, the
credit situation had broken away from
the railroad securities. which were in
n decline. He explained this by say
ing that other securities had been
growing In popularity largely because
Of government aid, instancing the nc-
ceptance Of municipal bonds as security
for postal savings bank receipts, and
exemption of such securities from taxa
ton I'm many States.
Mr.. Chamberlain asserted that the
decline of railroad bonds had culmin-
ated in the inability of the investment
bankers to find any market for such
| securities. and that the country faced
the prospect of having n flood OF rail-
road securities, held abroad, pouring
! on the market.
! John Il. Oldham, an investment
! banker of Boston, read a statement he
had prepared after an examination OF
| the accounts of nineteen standard rail-
roads. This, he said, proved conclu-
svcly that the net earnings of the.
roads must be increased II they were
| to project their securities.