Evening journal., 1914-09-22
The Railway Crisis
CFrom The independently

group of representative railway men
This statement we print on another
page. together with the reply OF
President Wilson. which shows no"
serious he considers the case TO be.
The memorandum Of Frank Trum-
bull. chairman of the executive board
of the Chesapeake and Ohio Railroad
Company. spokesman for the railway
operators. is declared by President
Wilson TO be "a lucid statement OF
plain truths"
Among the plain truths" arc
these:
First the vast increase in un-
productive railway expenditures in
recent years. largely made necessary
by the growing demands OF govern
ment regulation. both FEDERAL anu
state.
Second. the serious depletion OF
revenues which war conditions VIII
inevitably bring about.
Third, that the maintenance OF the
credit of the railways (and. 10 use
Mr.. Trumbull's words. the credlt
OF the railways establishes the stand
ara for all industrial enterprises ,
depends upon their ability to IN
crease their net earnings.
Fourth. that the breakdown of gen.
eral credit conditions brought about
-by the Great War has increased in
terest rates to an unprecedented de-
gree. far above the level OF the pres
emf net earnings return upon the rail
way property of the United States
so that the task of the railways o
obtaining the new capital which the'
need every year-to an amount eX
ceeding half billion dollars-wil
, prove we'll nigh insuporable.
Fifth. that when the New Norl
Stock Exchange opens again-and
, must open some time--a large por
{ ton of the three to five million dol
/ lars of American railway securitie
, Leld i'm Europe will be dumped upo
z the American market by desperat
foreign investors. TO the\ furthe
, damaging of the already impaire
% railway credit
{ The President has recognized tn
g force of these statements. The whol
{ country should be quick 10 folio
4 him in recogizing them.
p The danger which they set fort
s is a danger not only are largely II
f vested in American railway secur
n ties. The danger that threatens Il
l. railways threatens the Gcpositors
= savings banks and trust compani'
Il throughout the land.
d The basic public service of OF
d whole industrial and commercial sy
Z. tenn faces a danger which in threa
e ening it, threatens us all. II is
l. time for concerted action on beha
% of the common welfare. Nation
$ public opinion should rouse itself al
d bring its force to bear upon tho
governmental agencies whose actil
y ties have direct bearing upon q
AZ great public service of railwa'
'e transportation.
al II is national crisis. II is
time for Congress to proceed WI
n any legislation, no matter how fund
te mentally sound or how salutary
to might prove i'm the long run, who
in first and mediate effect would
is TO throw additional burdens upon I
lie railway systems of the country.
r It Is a time for the Interstate Co
n merce Commission TO consider graz
he " whether IL shall not reopen
". lust decided rate case ana, in its
IT'S consideration, give the railways
rs. heneit OF every doubt on behalf
-e- their plea for increased revenue
II is emphatically time VII
en- in the words of President wis
he eve must all stand as one to
Ig- Justice done and all fair assistaI
de rendered, and rendered ungrul
a ingly."