Hermanner Volksblatt. [volume] (Hermann, Mo.) 1875-1928, 1914-10-02
Grarest Crisis In History
ContTonts American Railways
War has Closed Financial Markets Of
Europe 10 them Indefinitely

hS -tA
ly brought American Railroad:
face to face with the gravest crisi!
in their history. With greatly di
minished receipts and an ever in
creas;ng cost of operation theil
condition was precarious enough
before-but now, whit the 6nancia.
markets OF England, Germany
France, Austria, Belgium and Hol-
land indefinitely closed to them, il
means that they must hencefortt
finance all their requirements with
in the United States. Not only
| that, but in their frenzy for ready
gold these countries are trantically
seeking TO dispose OF big blocks oil
the nearly five billion dollars worth
Of American railroad securities
which they now hold. II was this
dumping process which forced
tie closing OF the New York Stock
Exchange some weeks ago. When
il will be able to open its doors
again, no man dares propheSy -
but when it does it willunqueStion-
ably tax our resources as never be
fore not only TO maintain the in
tegrity OF our railroad securities.
but all other classes Of industrial
investment as we'll.
President Wilson'S Vie VS.
SO grave is the situation consid-
cred that some days aago group OF
Eastern railroad executives laid
the matter before President Viii
son. Alter listening to their plea
the President dictated a letter TO
Mr.. TrumbuIl OF the Chesapeake
& Ohio Board in which among
other things he said:
You asked me to call the atten-
ton OF the country to the impera-
tive 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 ofgov-
ernmental agencies, and am glad
to do SO, because | 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 individuals
and by institutions.
i am confident there will be
earnest and active cooperation in
this matter, perhaps the one COM
mon interest of our whole indus
trial life.
Undoubtedly, men, both in and
out OF official position, will appre-
ciate what is involved and lend
their aid heartily whereveriti is pos
sible for them to lend it Rut the
emergency is in fact extraordinary
and where there is manifest COM
NOR interest we ought all OF us
totspeak out in its behalf. and I am
glad TO join you in calling atten-
ton to il. This is the time for all
to stand together in united effort
10 comprehend every interest and
serve and sustain it in every legiti-
mate way.
Railroads Lost Millions
The net operating income OF the
railroads OF the United States for
the year ending June 80, 1914. was
SI2o, 900 900 less than for the pre-
vious year. The gross earnings
for the year were $44 GOO 900 less
than for IoI3-while expenses and
taxes were S7o,ooo,ooo more. But
heavy as this burden was before,
the great struggle across the seas,
carrying in its wake the destruction
OF untold hundreds OF millions Of
dollars worth of all kinds OF prop
erty, renders the situation a thou
sand fold more serious. 1t means,
in short, that Tor a number OF years
to come Europe will have no SIR
plus money for investment in the
Cnited States or elsewhere and
that. as has been stated before, our
railroads will have 10 finance their
future needs at home. How her
cnlean this task will be may be
judged from the TACT that the bond
and note obligations which Will
mature between now and the end
OF next year and which the rail-
roads Will have to meet in some
way, amount to more than S563,-
ooo,ooo-and this doesn't take a
dollars worth OF new improve
mepts or betterments into consid-
Grafton. These are obligations
which were incurred in the past
and which must be met as. they fall
due if the transportation compan-
les are to be preservedfrom whole
sale receiverships and ruin.
Manifestly, therefore, American
o,,aetare H. -. fAAf LII 49,