The Butler weekly times. (Butler, Mo.) 1881-1918, 1914-10-01

GRAVEST CRISIS IN
HISTORY CONFRONTS
AMERICAN RAILWAYS
War Has Closed Financial Markets
of Europe to Them Indefinitely
The European War has suddenly
brought American Railroads face to
face with the gravest crisis in their
history. With greatly diminished re-
ceipts and an ever increasing cost Of
operation their condition was precari-
Gus enough before--but now, with
the financial markets Of England,
Germany, France, Austria, Belgium
and Holland indefinitely closed to
them, it means that they must hence
forth finance all their requirements
within the United States. Not only
that, but in their frenzy for ready
gold these countries are frantically
seeking to dispose Of big blocks of
the nearly five billion dollars worth
of American railroad securities which
they now hold. 1t was this dump
ing" process which forced the clos
ing of the New York Stock Exchange
some weeks ago. When it will be
able to open its doors again, no man
dares prophesy-but when it does it
will unquestionably tax our resources
as never before not only to maintain
the integrity of our railroad securities
but all other classes of industrial in
vestments as well.
President Wilson'S Views.
So grave is the situation considered
that some days ago group OF East
ern railroad executives laid the mat
ter before President Wilson. After
listening to their plea the President
dictated letter to Mr.. Trumbull of
the Chesapeake & Ohio Board in
which among other things he said:
"You asked me to call the attention
of the country to the imperative 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 agencies,
and | am glad to do so, because
think the need is very real.
.'They are indispensable to our
whole economic life, and railway Sc
curities are at the very heart of most
investments, large and small, public
and private, by individuals and by in
situations.
II am confident there will be earn
est and active cooperation in this
matter, perhaps the one common in
terest of our whole industrial 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 extraordinary and where
there is manifest common interest we
ought all of us to speak out in its be-
half. and am glad to join you in
Calling attention to it. This is the
time for all to stand together in unit
ed effort to comprehend every inter-
EST and serve and sustain in in every
legitimate way"
Railroads Lost Millions. |
The net operating income of the
railroads of the United States for the
year ending June 30, 1914, was $780,
100. 600 less than for the previous
year. The gross earnings for the
,ear were 50, OOO,0O less than for
I9l3-while expenses and taxes were
I76. 100000 more. But heavy as this
burden was before, the great struggle (
lcross the seas, carrying'in its wake
he destruction of untold hundreds of {
Millions of dollars worth of all kinds {
# property. renders the situation a
thousand fold more serious. It
means, in short. that for number of
ears to come Europe will have no
urplus money for investment in the s
United States or elsewhere and that, {
S has been stated before, our rail- 8
oads will have to finance their future. '
eeds at home. How herculean this c
ask will be may be Judged from the c
act that the bond and note obligations
'hich will mature between now and v
he end Of next year and which the 7
will have to meet in some 9
ray, amount to more than $563, m,- G
this doesn't take a dollars b
'orth of new improvements or bet Il
=