The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-21

The Public Demand.
President Wizard sid he would like
TO make one thing clear That the public
interests demand not only the adequate
maintenance OF railroads. but constant
Increase OF transportation facilities. He
added that the pet.t.oning carriers were In
need Of the increase principally 10 meet
expenditures for future and present i'm
movements As a matter u fact, 10 per
cent in his opinion. would not be an ex-
cessive increase to ask for.
you propose IN Increase OF per cent
said Commissioner McChord. (which IT,
roundlv speaking, s50.00O,000 additional
revenue. w!n that not be enough?'
81 DO not thlnk so" replied Mr.. willard.
"Now," continued Mr. McChord. the
idea then Is that this s50,000,OOO will put
the railroads on their Feet ana improve
business In the country
81 have not spoken OF the country,
President willard replied.
The country seems arguing for this,
said Mr. McChord Il see It in petitions
md In the pres, and from reports from
different portions Of the country
Presiden. Willard quoted the commits
sIon's words In It's recent decision The
public interest demands not only the ade-
quate maintenance of existing railroads
but a constant increase of our transporth-
ton facilities 20 keep pace with the growth
and requirement, OF our commerce"
81 simply wish to be recorded as hav-
ing stated under onth." added Mr., VIII
lard that In my opinion with the under
standing which have OF the railroads
involved In this proceeding they are not
as whole to-day being adequately MAIN
tanned they are no. conforming TO that
condition which the commission set up
as desirable STANDARD. nor are they
making proper provisions for the constant
growth which ;hey may expect.
Il wish also TO stl.c that In my opinion.
based upon such knowledge as | have of
the business and of the conditions of
these carriers. when We shall again DO
confronted with a condition Of business
activity. AS we may reasonably expect in
the not distant future, the railroads in
this territory, unless they are In some
way put in such position as to Justify
them to begin Immediately to provide
facilities. VIII fall short OF being able TO
take care of the business to much
greater extent than occurred in 1907.
at should be kept In mind all the time
thar II the railroads are not adding TO
their facilities they are going backward
II l. "A matter of common knowledge to-
day that IN" railroads are not buying
freight cars, they are not buying locomo-
tlves. they are not providing additional
facilities. ANA that constantly locomotives
and freight cars are wearing out"
Cost of the War.
Charles 4. Conant was called 70 the
stand By George 5. Patterson. counsel for
the Pennsylvania Railroad, and proceeded
TO read a for,y-four page pamphlet. He
said in part:
The cost OF the war, X II lasts APP
proximately year. will not be materially
less than $4,000 100000. The demand
for capital for purely war purposes and
for the settlements which succeed the war
will be so great as TO absorb an amount
equal 70 the entire savings for investment
made in all civilized countries for a
period OF several years. The effect OF
this abnormal demand for capital, which
* beins consumed without economic profit
VIII be to raise tho rate of Interest on
Investment securities higher than II has
been for many years.
1.-THE fact that such enormous sums
TO pay the costs O, the war are sought
almost exclusively by means OF Govern
ment loans Will make II impossible to
obtain capital Tor other purposes. cx-
cept at "A rate OF interest considerably
higher than that paid by Governments
The financial disturbances which will
occur during the process of distribution
of these Government loans to Investors
extending over several years, will In
volvc the sale Oh the American market
of railway and industrial securities now
outstanding 10 an amount whlca viii In
Itself absorb so much OF the new capital
available in the United States that II
will be extremely difficult to obtain any
Tor new enterprises.
"If, therefore, American railways and
industrial enterprises are to obtain any
new capital whatever during the next
few years, it Will be necessary to make
issues OF securities very attractive, not
only In respect TO the rate Of interest
..ttN
!Aterest and dividend payments are alb
solutely secured by adequate earnings"
Investment Capital.