Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-08-25
EXTENSIVE MOVEMENT ON FOOT
TO HAVE RAILROAD CON-
MISSION REVERSED.
STOCK BROKERS INACCURATE
CAMPAIGN AMONG BANKERS
Effort Being Made to Induce Congress
to Override Commission and Order
Per Cent Rate Advance in Both
Eastern and Western Territory
Iowa News.
.ial 70 Times- Republican.

Special 10 Times Republican.
Des Moines, Aug. Pa very UNI
usual and startling move has been
started by the railroads of the east i'll
the per cent rate raise case. Ii IS l
movement to compel the interstate
commerce commission TO reopen the
case and reverse its judicial decision
on command of congress. and to auth
orize a flank movement in high finance
incident, to- the war.
a number of the leading bankers OF
Des Moines. and presumably OF Iowa
have received q letter from firm OF
stock brokers in New York, outlining
this latest movement. The tirrn claims
to have sent the letter TO $4,000 bank
ers in the United States, asking them
10 bring political pressure on members
of congress 10 favor a congressional
decision that the per cent raise is
the right thing al this time. The bank
ers are urged 10 write TO congressman
and TO have their customers among
the large shippers also write members
of congress urging passage of con-
current resolution directed 10 the in
terstate commerce commission. re
questing it,. because OF the emergency
situation with reference to railroad Sc
curities, 10 review and revise the de-
c.sion in the recent application OF the
eastern railroads. and in their discre-
ton and in view OF the great and
extraordinary necessity for this action,
TO promptly grant further and adequate
advances TO all the railroads.
To Include East and West.
II is thus proposed not only TO cover
the eastern territory where conditions
have just been reviewed. but also the
western territory where preparation IS
under way for rate case, and the
southern territory, and 10 secure a
blanket advance in rates without an
inquiry.
This would be a much easier way
than to make a showing before the
commission as TO the reasonablenesS OF
the proposed rates or by the indirect
pressure method which was tried out
without success this year. In view Of
the fact that at least eight OF the mid
land states, officially, by and thru their
elected commissions, opposed the east
ern rate raise without investigation, it
is probable that the congressman from
these states would hesitate to fall in
with the new plan for effecting raise
in rates.
Points to War as Menace.
The statement of j. S. Bache & Co.,
of the New York stock exchange, as
made TO the bankers, is that the ad-
vance which was granted in the recent
rate ease-the local raises in Central
Freight Association territory-is not
more than enough TO increase earnings
of the railroads one-eighth of per
cent on the total capital of the rail-
roads naking the application, and this
small advance viii have no effect in
restoring and establishing the con-
hdence Of the large investors here and
the holders OF securities abroad Para :
graphs in the letter Of the brokers are
as follows:
Owing to the great European war,
our financial situation is under an
emergency pressure, because threat
ened by the unloading of railroad Sc
curities held by Europe. Our securi-
ties are in disfavor because Of low rail-
road earnings. They should al once be
made attractive TO capital all over the
world. This can not be done unless
our railroad securities are given a
safe margin of earnings. The value of
all other securities depends upon the
success of the railroads.
These securities will be sent over
as soon as possible TO do so, to draw our
geld or it's equivalent and they will not
be taken up freely by our own large in
vestors because they have not suffi-
| cient confidence in the success of the
railroads under the present scale OF
low freight. Rates need to be advanced
materially in order to give such a mar
gin of earnings that railroad securities
will be bought.
! Further than that; the credit sys-
/ tenn of the world has been upset. We
have lost Europe as our bankers. We
! not only can not hope to place new Sc
curities in Europe; we are compelled
| to take back vast quantities of existing
securities which for many years Eu-
rope had been absorbing. Every veal
our railroad systems have to spend
enormous sums to increase and extenC
| their transportation facilities to mee
| the growing demands Of American
commerce. Where are the railroads tc
obtain the money with which to make
the needed additions and improve.
ments? They can not turn to Europe;
American investors are not attracted
under present conditions; they viii
have to look to their earnings unit
the confidence of investors is restored
| mo financial move could be more
beneficial now than to make our Sc.
curities so attractive that the funds OF
the investing world would be ire
sistably drawn to this country. Thi
would be accomplished If the railroads
were given full and ample earning
power. 1t would stimulate the whole in.
dustrial structure and enhance the
value Of all other securities