Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-03-04
The Plea of the Railroads.

+ z
row money at that time at that
rate. He said he did not know OF any.
Last spring. Mr.. Rea, Of the Pennsyl-
| asked him the following questions:
Can you name any other company
that was able to sell securities due
within one year, In the form Of notes
or otherwise. that were ablc to sell
during the month of April Of last year
| at better rate than you did2"
Mr.. Rea. mo. don't know of
any"
Mr.. Thorne: "Was there any other
| company in any other line Of business
in the United States, that was able =
sell securities payable ten years from
that date, that sold the same at any
better rate than yours were sold dur
ing the month Of April. 1872"
Mr.. Rea: mot that I know Of"
Mr.. Thorne: do you know during
the last five year. any time you made
any sales Of bonds that any other COM
pany in any other line Of business In
the United States was -.h!c r. cell
their bonds at better rate?"
Mr.. Rea: 1T seems to me that Is
tantamount to asking me whether the
credit of the Pennsylvania Railroad
/
Mr.. Thorne: THAT il Just exactly
what am asking"
| Mr.. Rea: well, II you want my
opinion, should say that It is."
Later the bankers put on bond ex.
pert as their chief witness. Mr..
Chamberlain, Of New York, and the
| following extract Is taken from his
| cross-examination:
Mr.. Thorne: Can you name any
class Of companies in the United
! States, engaged in any other line Of
business than the railroad business,
either industrial, manufacturing, street
! railway, gas and electric light, tele-
phone and telegraph, or any other gem
eral class Of manufacturing, Industrial
! companies as class, that command
as high prices as railroad securities Of
the same denomination?
Mr.. Chamberlain: "The railroad Sc
curities still have the advantage in
credit. 1t Is getting less year by year,
but they still have It,"
Mr.. Thorne: I'm other words, the
credit Of the railroads is the highest?"
Mr.. Chamberlain: Yes"
In preceding issue we quoted from
the testimony Of the eastern railroad
managers, which showed very clearly
tldI luo idTSeT SdSIcEIl TOdUS, WHICH
handle most OF the traffic. have been
making from 8 to IA per cent. and in
addition laying by a surplus and main
tanning their property BY their own
reports quoted, it will be seen that the
total amounts expended for mainten-
ance by all of the railroads in 1913 was
the greatest in their history up to that
time, and in 1914 was $50, G0G,0O great
er than in 1913. The testimony of
these railroad men shows very clearly
that they have been able to borrow
money cheaper than any other kind Of
big business has been able to borrow
1t, and cheaper than the farmers OF the
richest soil on earth have been able to
borrow during the past year.
In view of the facts quoted in the
foregoing, would it not be Just as we'll
for the people OF Iowa Ia exercise
some caution before they grant any
such advance in rates as the railroads
are asking for. 1t IL all right to be a
good fellow. but s10,000.000 year is
rather high price to pay.
And in the meantime, should we not.
just as quickly az possible, get at the
job Of finding out what the Iowa rail-
roads are worth? When we learn this,
we will know whether they are get
LIB AdlI HdlCS AOA VIC Sci VAC ShCy AAS
rendering. We can not know until
we do ascertain their value. II every
other line Of business was rolling In
prosperity, and II the railroads were
in the dumps. we might all be willing
to chip in and help out the roads, but
from all the facts which can be ascer-
tained, 1t looks as II the roads were
having no more trouble than the rest
Of us.
We suggest that our readers write
to their senators '.nd representatives
in the Iowa legislature. and suggest
two things to them. First, that the
Iowa commission De giveE as much
money as II thinks It needs to repre-
sent the people in the advance in rates
asked for at the present time; and.
second. that 100000 be appropriated
and turned over to~the Iowa railroad
commission, with instructions to use
1t to find out just as quickly and care
fully as possible what Iowa railroad
property Is worth. II we can get this
information, we will have some basis
to go on. We want the roads to get
good pay for the service rendered, but
in view Of the fact that they are get
ting something like $100.000,000 year
for freight and passenger service in
Iowa, we might as well spend a little
money to get at the real facts In the
matter before we agree to any adj