The Birmingham age-herald., 1915-07-02
Fewer American Railroad Securities Held in Europe
 Than Anyone Thought
EIGHT MONTHS ARE
 CONSUMED IN PROBE
Little Foundation for Belief That Se- curities Held Abroad Totaled Six Billion Dollars-War Orders
 Are Still Pouring In
By HOLLAND

President l.. F. Loree of the Delaware and Hudson Railroad company. was pub lished which told of the aggregate Amer ican railroad securities which are now held in Great Britain and in the coun- ment by citizens of those nations. The figures are not in round numbers and the minute details of them is spoken of showing the thoroughness with which President Loree and his committee have carried on this difficult work, which in- volved the finding out what the aggre- gate of American securities held abroad really is. Instead of reporting that the total is a little in excess of S2,500, GOO. President Loree reports that the total Is &, ,576 40l, ,342. This amount is somewhat less than the most moderate estimate which has been made of the total of American railroad securities held abroad. Even some of the English authorities est- mated the amount as in excess of $3,000, GOO GOO.
 When in conference with MT. McAdoo, Secretary of the Treasury, some months ago, bankers and railroad officers learned that it was desirable to make discovery if possible of the aggregate of American securities held abroad, considerable doubt was expressed about the ability even of the most competent search into the rec ord to gain anything more than an ap- proximate estimate of the amount of these foreign held investments. It was the belief, however that if anyone could organize a search of this kind the man
 I of the Delaware and Hudson. He was especially well equipped for investigation of this kind. He had already gained both in the railroad and in the busi- ness world fine reputation for ability to collect facts and statistics, mobilize them so to speak, and assimilate them. He was trained civil engineer and took part in the preliminary survey for portion of the Mexican National rail- road He has also been for years in close association as an executive with several of the leading railway corpora tions of the United States, and as presi- dent of the Delaware and Hudson rail- way was brought in intimate relations with a large number of companies which are in utilization with and as whole made up the Delaware and Hudson sys- tenn. President Lorees ability led to the
 
 ton at the worlds fair held in Chicago in 1893 and he has also served as presi dent of the American Railway associa- tion having been in addition to services of this kind prominently associated with national and interna tional railway or ganization.
 Eight months have passed since Presi- dent Loree began this work. It entaieo as careful an investigation as would have been necessary had a great piece of liti- gation in which the American railways dere dependents been in progress For the work was not unlike that which law yers undertake when they examine books and witnesses with intent to get at hid den reliable and important evidence. In this case, however. there was no power to compel any of the railroad corpora tions to furnish statements. That they have cordially responded to the appeal made to them by President boree Is evi- dent by the table which contains the de- tails The preparation of this reliable evidence will hereafter be regarded as one Of the great services rendered by Presi- dent Loree.
 What foundati there Is for the inn presson that the total amount of foreign investment in American properties, includ- ing those of railroads, is S6 0o0. .0000 GOO does not appear from the report made by Pres ident 'Loree. The best judgment is that this estimate IS LOO large Dy dS HuNu ao g. O00 coo, ,000. for it is reasonably assumed that the greater part of foreign invest ments in American properties were repre- sented by railroad securities.
 IL may be that a year hence President Lorees committee will be able to report that there has been a considerable re- duction of our debt to Great Britain and the continent of Europe on account of railroad securities, and vet it is a fair inference from President Loree's report that for the present at least it is not to be expected that English investors in American securities will sell them. In fact President Loree points out that in Great Britain many of the securities are in the ownership oi insurance companies who will be tempted to keen them as long as possible, looking upon them as the best protection they can have against finan- cial calamity That is only another way of saving that Great Britain holds in high credit American securities. Further more, many of these securities are held in Great Britain by those who are trus- tees and they presumably will be reduc- tant to part with them. Therefore, it is presumed that the time is distant when English investors in American railroad sec urities will be persuaded to part with them. Yet ultimately no doubt no small part of the great indebtedness which the belligerent nations are now rolling up in the United States will be liquidated through the utilization of our debts to for eign investors.
 Still the Orders Come
 At one of the greatest of the arms man. ufacturing plants in the United States the employees were told on Friday of last week that none of them could be spared. for all must work during the Saturday half holiday. and also throughout Sunday In some departments of this plant they have been working for 24 hours with thee shifts. A new and an emergency order came from Russia in the middle of last week and it called for the manufacture and delivery within as short time as pos. sible for large amount of rifles. These will be speedily made and before the sum. mer is over will be on the way to Russ,n. The skilled artisans in this companys en- ploy are now working "A hours a day and every day. including Sunday. Russia will get the rifles before summer is over. The two great industries in the United States which are occupied with the manlt- facture of certain kinds of machinery and tools particularly machinery which is used for the manufacture of other ma chimes, can now look back to the 1st of July of last year and recall the anxiety which they felt throughout July and com pare that feeling of depression with the exharation of this time. The capacity of their plants was reduced to a very small percentage and one of these great industries was relying chiefly upon tte execution of the contracts which had come from China and Australia Not in the history of any American industry is there such a record as these two great in- dutries can look back upon. The chanSe