Potosi journal. (Potosi, Mo.) 1894-1929, 1914-10-07
CRAVEST CRISIS IN
HISTORY CONFRONTS
AMERICAN RAILWAYS,
War Has Closed Financial Markets
Of Europe to Them Indefinitely.

war mas (l0Seo fl1Anclal Market
Of Europe to Them Indefinitely.
The European War has sud
denly brought American Rail
roads face to face with the grav
est crisis in their history. Witt
greatly diminished receipts ant
an ever increasing cost of opera
tion their condition was precar
ious enough before-but now
with the financial markets O
England, Germany, France, Aus
tria, Belgium and Holland indie
finitely closed to them, 1t mean.
they must henceforth finance al
their requirements within the
United States. Not only that
but in their frenzy for ready
gold these countries are frantic
ally seeking to dispose of big
blocks of the nearly five billion
dollars worth of American rail
road securities which they now
hold. It was this dumping"
process which forced the closing
of the New York Stock Exchange
some weeks ago. When it will
be able to open it's doors again,
no man dares prophesy but
when it does it will unquestion-
ably tax our resources as never
before, not only to maintain the
integrity of our railroad securi.
ties, but all other classes of in
dustrial investments as well.
President Wilson's Views.
So grave is the situation con.
sidered that some days ago a
group of Eastern railroad exec.
utives laid the matter before
President Wilson. After listen
ing to their plea the President
dictated letter to Mr.. Trumbull
of the Chesapeake & Ohio Board
in which, among other things,
he said:
You ask me to call the atten,
tion of the country to the imper-
ative need that railway credits
be sustained and the railroads
helped in every possible way,
whether by private cooperative
effort or by the action. wherever
feasible, of governmental agen-
eies, and l am glad to do so, be-
cause I think the need is very
real.
They are indispensable to our
whole economic life, and railway
securities are at the very heart
of most investments, large and
small, public and private, by in
dividuals and by institutions.
Il am confident there will be
earnest and active cooperation
in this matter, perhaps the one
common interest of our whole in
dustrial life.
Undoubtedly, men, both in
and out of official position, will
appreciate what is involved and
lend their aid heartily wherever
it is possible for them to lend it.
But the emergency is in fact ex-
traordinary and where there is
manifest common interest we
ought to speak out in it's behalf,
and l am glad to join you in call
ing attention to it. This is the
time for all to stand together in
united effort to comprehend ev-
cry interest and serve and sus-
tain it in every legitimate way"
Railroads Lost Millions.
The net operating income of
the railroads of the United States
for the year ending June 80,
1914, was 1921, 100000 less than
for the previous year. The gross
earnings for the year were $44,
600, 900 less than for 1913-while
expenses and taxes were &c.
600, 900 more. But heavy as this
burden was before, the struggle
across the seas, carrying in its
wake the destruction of untold
hundreds of millions of dollars
worth of all kinds of property,
renders the situation q thousand
fold more serious. 1t means, i'll
short, that for number of years
to come Europe will have no sur.
plus money for investment in the
United States or elsewhere and
that, as has been stated before,
cur railroads will have finance
their future heeds at home. How