The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-16
PLAN TO REORGANIZE
WABASH ABANDONED
Committee Announces Present
Freight Rates Mean Only
Bankruptcy.
STATE RELIEF REQUESTED

The Wabash Railroad reorganization
plan. adopted last No has been absn.
doned because Of ne conviction Of the
reorganization committee that the reor-
ganized company would certainly 70
quickly into bankruptcy under the pres
ent level OF freight rates. The unparalleled
financial disturbance caused by the war
has been only lesser influence in the
action 81 the reorganlzers IN Withdraw
ing the plan No substitute plan Is be-
ing considered
The decision Of the Interstate Com
merce Commission on the advance In rates
NJ the beginning OF the summer Is cousid-
cred entirely Inadequate to meet the 81
uaiion 4 shriyelled earnings revealed In
the report OF the roads operations OF the
last six months of the fiscal year to June
30. The decision o. the Interstate Com
merce Commission In the new case will
be awaited before the reorganzers begin
TO take up anew the Wabash rebuild
ing.
IL is understood that those interested
In Wabash affairs have high hopes that
adequate help will be extended the rail-
roads In the new decision.
The Abandonment OF the plan struck tho
financial community with peculiar force
yesterday. The statement Of the COM
mIttee, made In ,hs form Of a notification
10 the public service commissions Of Mis-
souri, and Illinois that the plan had been
withdrawn, presented proof that was CON
sldered self-evident OF the tremendous
burden the Wabash IL laboring under and
It's inability 10 stand under any reasonable
plan unless relief Ia granted,
The situation o. the Wabash is not
unique" says the committee. Its posi-
tion Is In the path which all OF the rail-
ways OF this country are following IN
varying stages OF progress. There can
be- but one OF two observation-disclosures 20
the railways and all the railways repre-
sent In their relations to investments saw
lngs, insurance and 20 general business,
as well as 10 public requirements and
convenience or an intelligent reversal II
the policy which has carried so far be-
yond the interests and demands Of the
people.
The reorganization committee appeals
strongly TO the State commissions for I'm
mediate relief In respect Of state freight
and passenger rates as VIII, 50 far as can
he accomplished by action OF your States,
check ana reverse the growing disaster
now upon the Wabash an other railroads
IN the same territory
The United states District Court OF
Missouri under whose direction the rail
road is now being administered, recently
recognized that only IN higher rates could
the system be operated. The receivers
were directed by the court to Use every
Effort TO =, .Ur" more favorable rates, as
retrenChmout had been utilized to the
fullest ,At,at.
wabash ryorgsui zatiOu plans have com,
and gone with sUrress during tn thre,
years OF recevershp. II was confidently
| believed that the plan just abandoned
would e. through II Involved the rails
! Ing ~ :30,ooO,ooo, partially through as
easements ard was considered a moicra;,
| and acceptable plan.
Briefly" says the committee, pas
| sengers are now carried on the wabash
/ Railroad ~ ne rate ~ one-trnti
/ Of cent per mile less than It costs tn,
/ railroad 20 run Its I1ss"rgc- s'rvice
! Freignt Is carried at a revenue OF only
little over oUe-tenlh OF a cen; per ton
per mile over the cost Of carrying it, I'm
! der these conditions 10 increase, natural
or phenomenal. IN tho volume q ethel
,class or OF both CLASSES of business will
otfse, the proportions of the cost s'ruc-
ture which has developed