The Washington times., 1914-10-20
SPLIT
UPON RATE ADVANCE
Comments Indicate Diversity Of
Opinion on Granting Increase
to Railroads. ~

With one commissioner asking,
Should we lit the burden brought By
the war from the shoulders Of the rail-
shoulders Of the railroad nsc-s'' wniIc
another commissioner STATED, The
country seems to be arguing in favor OF
advanced rates" tho indications today
arc that the Interstate Commerce Conf
mission may have considerable difficulty
in reaching unanimous decision in the s
Per cent advance freight rate case.
raniel r. Willard, president OF the
Baltimore and Ohio road. who Is max
ing the main plea Of Tho, carriers. re-
sruaed the stand today t.. submit. to fur
Their cross-examination. Commissioner
McChord, who wante.i t.; give the rail-
reads larger Increase in the previous
rate case. wondered II Fer cent would
be enough to meat he railroads needs.
Willard replied No but said it would
help. - sf.=.-@
1.-The notion seems to have gone
abroad that the per cent increase will
put the railroads on their feet and
therefore put the country on its feet,
said Mcchord. 4 was wondering wheth-
er per cent was enough. The country
seems to be srguins IN favor Of adj
vanced rates. I sea It in the press and
In the petitions which reacn EE."
|. Called Tax On Public.
Louis D. Brandeis. special counsel for
the commission, characterized the rail-
roads application as a-"war tax for the
exclusive benefit of the railroads." He
questioned Willard with vigor on the
Cincinnati, Hamilton and Dayton pur-
chase, aiming to show that the millions
sunk by the Baltimore and Ohio in this
road were largely responsible for its
present condition.
The cost of the European war, If it
should last approximately year. will
not be materially less than SIS. 900. 00o. 900.
Charles A. Conant, financial expert,
told the commission today in emphaslz-
ing the need of advanced rates to
strengthen American railroad securities
to meet probable depression Of the fu-
ture market.
THE demand for capital for purely
war purposes, and for the settlements
which succeed the war. will be so great
as to absorb an amount equal to the
entire savings for investments made in
all civilized countries for a period OF
several years." Conant declared.
Interest To Go Up. s
1.-THE effect of this abnormal demand
for capital. which Is being consumed
without economic profit. will be to raise
the rate Of interest on investment Sc
curities higher than IT has been for
many years. The fact that such enor-
nous sums to pay the costs Of the war
are sought almost exclusively by means
of government loans will make 1t i'm
possible to obtain capital for other
purposes, except at rate Of interest
considerably higher than that paid by
governments. -".t
THE financial disturbances which will
occur during the process of distribution
of these government loans to investors,
extending over several years, will in
volve the sale on the American markets
of railway and industrial securities now
outstanding to an amount which WILL
in itself. absorb so much of the new
capital available in the United States,
that 1t will be extremely difficult to
obtain any for new enterprises.
IF. therefore, American railways and
industrial enterprises are to obtain any
new capital whatever during the next
few years. it will be necessary to make
issues OF securities very attractive. not |
only in respect to the rate of interest, |