Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1914-12-27
Life and Travel on Chilean Side of AndesA GRAVE CRISIS
GRAVE CRISIS CON-
FRONTS THE RAILROADS
WAR HAS CLOSED. MONEY MARKETS OF
EUROPE TO THEM INDEFINITELY

In view Of the fact that one Of the rail-
roads OF Nebraska has already flied an
application for an increase OF rates with
the State Railway commission, II Is
the desire OF all the railroads to utilize
this opportunity for an intimate and
frank discussion Of the whole railroad
question with the people Of this state.
To this end the careful attention of the
reader is invited TO a series OF articles
which wilf appear in this newspaper dur
ing the next few weeks and which will
contain the most far-reaching discussion
of this great problem that has ever ap-
peared In the public press. All that is
asked in the meantime il that the people
Of Nebraska accord to the railroads tho
courtesy of listening TO their side Of the
story and, then form such conclusions
as. in their Judgment. the facts may war
rant
That the railroads OF the United states
are today confronted by the gravest crisis
In their history there is not the slightest
question. For some years they have been
desperately struggling with an ever in
creasing cost of operation in the face OF
reduced freight and passenger rates-but
serious as this situation was before. the
European war, which has indefinitely
closed TO them-the foreign money mar
kets. has suddenly brought them face 70
face with a situation which threatens NOT
merely many new receiverships but the
actual paralysis Of the entire transporta-
ton industry Of the nation. It was this
state of affairs which compelled the clos
| ing OF the New York Stock exchange
some months ago. What will happen in
the future the future alone can tell
American railroads are valued I'm round
| figures at 10000 COO 0OO. and of this vast
sum nearly 5000. 900 worth OF securities
are held abroad Should Europe in its
frantic struggle for funds, seek to con-
vert these securities into cash during the
next twelve months, where is the money
to come from with which to buy them? p
and failing TO protect these securities
what Generalization will follow NOT
merely In railroad Investments but in all
other American Industrial values as we'll
The recent statement Of David Ilovd-
George chancellor Of the excheouer. that
the inability Of Englishmen TO convert
their American investments into cash ia
Gripping Great Britain In ITS nresent
emergency is ominously significant. Pos
sibly the New York Stock exchange may
be able TO resume operations without dts
aster for the time being but that the ff-
nanoes not merely Of the United States
but Of the world will be subjected 10 n
strain without precedent In history durinV
the next year or two is SO apparent that
It requires no extended comment In n
future article this phase of the question
Will be dealt with more fully.
President wilson's Views.
That the situation is profoundly serious
Is manifested by the recent utterance OF
President Wilson to group of eastern
railroad executives In his letter to Mr..
Trumbull OF the Chesapeake & Ohio no
said:
You ask me to call the attention OF
| the country to the imperative need that
| railway credits be sustained and the rail
roads helped In every possible way.
whether by private cooperative effort or
py the action wherever feasible of gov
ernmental agencies, and am glad TO do
so. because l 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
Il am confident there will be earnest
J and active cooperation in this matter,
perhaps the one common interest of our
whole industrial life.
Undoubtedly men, both in and out OF
| official position, will appreciate what is
involved and lend their aid heartily wher-
ever 1t is possible for them to lend it
But the emergency is in fact extraordi-
nary and where there is manifest common
interest we ought all of us to speak out
IN Its behalf, and I am glad to join you
In calling attention to 1t. This is a
time for all to stand together In united
effort to comprehend every interest and