The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-12-17
Southern Pacific Executive
Talks of Railroad Troubles.
julius Kruttschnitt Does Not
Expect Credit Improvement.
GOV. OWNERSHIP UNLIKELY
President Ripley's Opinions
Are Not COncurred In.
Other Items Of General Interest
In the Traffic World.

San Francisco. Cal. Dec. 17.--Julius
Kruttschnitt. chairman of the executive
committee of the board Of directors
of the Southern Pacific Tuesday broke
all the traditions Of the school Of rail-
road managers among which he Is a
shining light and talked of railroad
financing, the future of railrOading in
the United States and the relations of
the government and the railroads.
He believes:
That there is no improvement in the
credit of the railroads.
That if the interstate commerce COM
mission grants an increase in freight
rates to the eastern roads, some Of the
eastern railroads might use this in
crease as an occasion for floating more
securities, if in urgent need of funds.
That II an increase is granted de-
crease will be ordered after the roads
have passed the crisis; the commission
will not allow the roads to make big
profits.
That the railroads cannot go on is
suing securities to an indefinite extent.
That the people of the United States
would not benefit by government own
ership. because they now have govern
ment management without the respon-
sibility of government ownership.
Spend No Money.
Asked how much money his company
contemplated spending in California in
1915 in permanent improvements,
Kruttschnitt replied:
I'VE are contemplating spending no
money for improvements during 1915
except to complete projects under way.
where it would be more expensive not
to complete than to complete Them
Q.-Are there any signs in the money
market that the railroads will again
be able float long term securities? If
not, how is the financing Of the future
to be done?
A.-There are no indications of i'm
provement IN the credit of the railroads,
and there will be none until the reve-
niles show marked improvement. There
fore. there must be little or no financ-
ing in the future, and what is done
will have to be done on terms dictated
by investors, it being patent to anyone
that the less attractive the investment,
the higher the rate that must neces-
sarily be paid.
Q.-Do you believe with Mr.. Ripley.
president of the Santa Fe. that the ul-
innate end of the railroads is in gov
eminent ownership?
A.-The present arrangement by
which the government manages railroad
properties. without any responsibility
whatever. must necessarily be much
more to it's liking than government
ownership. which carries responsibility.
/ do not believe, however, that the pub
lie is irrevOcably committed to the pres
ent treatment of the railroads.; be-
lieve than on sober second thought the
railroad will be dealt with intelligently
and reasonably.
Commission Uncertain.
Asked if the inability of the railroads
to float long term securities be the i'm
polling cause to government ownership,
Kruttschnitt declined to answer.
Q.-What is the outlook for higher
freight rates in the cs-ses pending be-
fore the interstate commerce commits
sion?
A.-No one can express an intelli-
gent opinion as to what he commits
zion will do for higher freight rates
Anything I may say would be mere
speculation, in which 1 do not care to
indulge.
Off any increase is granted to
the eastern roads or to any other