New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-21
Not Only Interests, 1t Is Ar
eued. To Be Affected by
Conflicts Consequences.
|. c. C. MEMBERS,
TOO, PLY QUESTIONS
Frederick w. Straus Tells Com
mission Higher Freight Rates
Are a Pressing Need.

took the position oeIoFs eho AnVei
Commerce Commission to-day that no
condition confronted American rail-
roads. as result OF the European war
or any other cause, that did not equally
affect every other American industry
This contention was the basis for rigid
eross-examination Of witnesses called
before the commission by the Eastern
railroads to support their petition for
relief through a general increase Of at
least 5 per cent in freight rates.
Members Of the commission, all Of
whom we're present with the exception
Of Chairman Harlan, frequently ex-
AHMED witnesses themselves. The at
tack Of Special Counsel Brandels on
the policy Of the railroads OF main
tanning their dividends without respect
20 the financial straits IN which they
protested 70 find themselves received
special attention from commissioner
Meyer.
Mr. Mevsr asked both Daniel Willard,
president Of the Baltimore & Ohio
Railroad. and Frederick W. Straus, OF
the New York banking house Of ".
J. Soligman, IL stockholders should not
be content to draw their profits part in
the improvements Of the properties
and part IN cash. Both witnesses in
sisted that reduction of dividend would
impair credit Of the lines.
Buy a Share Of Stock"
Commissioner Meyer said he had
heard of no proposal to start buy
share Of railway stock" movement He
asked Mr.. Strsus If the statement OF
witnesses for the railway as to the
prospects for railway securities were
in his opinion calculated to make such
q movement popular.
Have you been accustomed" asked
Commissioner Meyer, TO have the head
Of q great concern come to your once
and offer you 100000 of al issue of
securities, at the same time stating he
would not invest in them himself! In
your opinion. how would that AFFECT the
credit Of his company?
Undoubtedly II would tend TO shake
confidence" the witness replied.
Reverting 10 the question Of divi-
bends. Mr.. Never asked # the witness
did not believe a clentage OF STOCK
holders could be built up who would 7
look upon property improvements as
part of their legitimate dividends. Mr. :
Straus thought not.
Then the average stockholder, IN
YOUR opinion said the commissioner
"buvs income, not property :?
"He has little personal pride IN the
property," was the reply. 1T is too re-
mote from him. he is interested IN
what he gets out Of his investment.
Country's View of Case.
- ..-o4;nv ~ Mr.
Willard Commissioner McChord com
mented on the amount the proposed .
per cent increase would realize, esti-
mated at $50 900. and asked if this
would accomplish the correction Of all
the oppressive conditions OF when the
carriers complained
"Tbe idea is that this s50,OoO,O00,"
the Commissioner said, will put the
railroads on their feet and improve
business I'm the country The country
seems to be arguing IN favor Of this
increase. ] see it in the press and IN
petitions which reach the commission
and in reports from other parts Of the
country
When Mr.. Straus took the stand his
counsel asserted that the bankers had
asked to be heard adding that they
wished to appear Independently OF the
railroads.
Mr.. Straus had prepared a long re-
view Of financial conditions, but Com
missioner Clements, IN the interest OF
time, had it filed with the commission,
the witness confuing himself to
general discussion.
Mr.. Straus declared that the purpose
Of his testimony was 10 lay before the
commission the effect of the war on
egrf4vfAfce which he said.
we're the standard of American securl-
ties abroad The decline of these rail
road securities held abroad, he argued,
would mean the decline OF all Amerl-
can securities, and a consequent ire
mendous movement Of gold to Europe
from the United States.
The foreign investor, he said, must
be assured that his Investments would
continue TO yield him good returns;
that the values OF those securities
would be maintained. He averred that
he made no claim that the advance in
rates to the railroads would accom-
plish that by itself; but he insisted
that II was all that the commission
could do, and was the immediate and
messing need. The federal govern
nent, the bankers Of the, United states
and other agencies, he suggested,
mlENI AhANA NNfA'N 49,
American interests fully.
Financial Expert Heard.
Charles A. Consnt, Of New York, ap-
reared as on expert on finance, IN be-
half of the carriers, 20 describe cOndi-
tions in the money market arising from
the European war. lie predicted that
the railroads would find new capital
lard 10 get because of the many loan
fotstions BY bellgerent countries. In
creased earning capacity was impera-
tive for the railroads he said that
their securities might be made 90 at
tractive that they would find . market.
Counsel for the commission asked
him II the probable advance IN inter
est rates would not bear equally hard
on shippers seeking new capital, and
he admitted. after much discussion,
that the shippers would face the same
conditions.
"What remedy FOR these conditions
do you suggest" he was asked
so far as the railroads are con
cerned, permit them TO increase reve-
nueS," he answered.
Would 80 help the cotton industry
20 raise the price Of cotton asked
Clifford Thorne, representing numer-
Gus shippers organization.
Not ~ this moment sand the wit
ness.
Al the end Of Wr. Conant's cross-ex-
animation Comm ssloner Clements,
presiding at the hearing, asked what
his qualifications were as an expert on
finance Ny Conant said he had ad
vised several governments ss 70 the
reorganization Of the monetary sys-
tens and mis- counsel stated that a full
record % his qualifications appeared
a - o.,.i,.. Ie.,frore of tho advance