The Prescott daily news., 1914-09-28
RAILROADS FACE CRISIS SAYS
 BUSH; HAS FAITH IN WILSON
Missouri Pacific Executive Declares War Will Affect Roads More Than Other Industry. Noth-
 ing is Done for Relief.

It is generally considered by the railway managers that the European war will injuriously affect the rail roads more than any other industry. President Bush of the Missouri Pa cific says:
 The problems arising from the Flu ropean war confronting the country as to the difficulties in marketing our many varied productions are moment ous. These are receiving deserved reconsideration by our Government and public spirited citizens, and it is hop ed that an amelioration of the harsh conditions encountered will be at once forthcoming.
 "Serious as these problems are, they are no greater as to their injurious effect on the welfare of the country, in the decline of industry, trade and commerce than those which confront the transportation industry Though much has been considered and done for the relief of other industries, noth- ing so far has been suggested to aid the railroad industry, which is all important to every other. For some years back railroads, by reason of di- unfinished net earnings, have experen- ced difficulties in borrowing money to make necessary improvements to meet the requirements of the expanding business and the public demand for better service. This war emergency will accentuate this situation and fur ther impair their credit, so that un- der the present conditions of made quate revenues all attempts to finance railroad securities will be futile.
 Railraods' Greatest Danger
 This is the greatest danger with which railroads have been menaced in their history. They are thus not only deprived of the means to meet current turgent needs in affording adequate service, but they are confronted with the problem as to how they can take care of outstanding obligations which mature in the near future
 "A careful computation of these ob- Iligations shows there are upwards of $57S,0 900 in default at the present time, $34 100000 which must be met before the end of the year and S563,- 000,00 between now and the end of next year. It is needless to say that if these obligations are not met, other industrial interests dependent on the railroads will be injuriously affected as well as the railroads.
 "The probabilities are that for a long time to come American securities will not find market in Europe. All surplus capital of that Continent will for some years be required to replace the destruction of property and repair the ravages of war. Nor, is this all, for we shall likely have to repurchase a large share of the nearly 5,000,000,- GOO of American securities which are now held in Europe. This will throw upon our own people the burden of inancing the railroad requirements for an indefinite period and if the rail roads are not to be driven upon the rocks of bankruptcy and deterioration, they must have the kindly cooperation and friendship of the public and our law making bodies as never before.
 Revenues Long Inadequate
 "It is now quite generally known that for long period back, even with good crops and prosperous times, rail road revenues have not been adequate for railroad requirements; they have not been sufficient to enable them to establish a sound credit with bankers so as to raise money for improvements and extensions to take care properly of the expanding commerce.
 "Rate reductions and burdensome regulations prescribed by Federal and State authority, together with largely increased taxes and expenses for labor and materials entering into the oper ation of the roads, have so decreased the net earnings of the carriers as to leave many of them without means to meet their mortgage interest. As a consequence of this their credit has been swept away and they are unable to get new money for necessary inn provements and facilities. It is esti mated that to provide amply for the
  constantly increasing business, S5O0,- 000,000 of new money is required