The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-21
SAYS RAILROADS ARE
KEY TO PROSPERITY
President Leach Of Investment
Bankers Association Calls
for Fair Play.
TRADE EFFECTS OF WAR

DENVER. Sept. 2o.-president A. r.
Leach OF the Investment Bankers Asso-
citation, which began Its fourth annual
convention here to-day. declared in n
disposition are necessary or the part of
the Interstate Commerce Commission II
our railroads are to succeed and that
these changes can only be effected by
the pressure OF public and business
sentiment upon the commission.
Mr.. Leach pointed out that the watch
word of America. and Americans was
progress" and that whatever the his
tory of the railroads in the past has
been. II signifies but little at present TO
the railroads and the communities they
serve unless IL teaches fair treatment
and common efforts for the common
good. He declared that the railroads
are furnishing the life currents of the
country. that they are the largest employ
ers OF labor, that they are the largest
purchasers Of supplies and materials and
that they constitute one OF the greatest,
II not the greatest. Of American indus
tries. II the country's confidence In rail-
o securities is taken away. accord
ing to Mr.. Leach, the railways will face
bankruptcy.
Referring TO the war Ind the great
waste OF capital abroad. Mr.. Leach said
AS investment banker we face the
problem that the capital which has been
expended for the development Of this
country. derived in the past from Eu-
rope, will not be available. We there
fore must devise ways and means to
furnish moneys for these developments
from home capital.
again. there will be resold 20 this
country in enormous volumes-they are
coming every day-securities which nave
been placed in Europe. We could not
have them presented to us at n better
time. Never before in the history of the
country have we been in position where
they could be absorbed and repurchased
as they are to-day II will make prob
ably. not a creditor nation. but certainly
q nation very much nearer that point
Than ever before. h interest and divi-
dend moneys which a v been going to
the other side will be paid to our own
people in a larger measure than before.
We also face the problem as to what
will be the price OF money, the return
on bonds and stock investments.
After the close OF the war. when the
time of readjustment comes, this vast
volume of paper which Is now being
used in Europe to finance the war will
nave TO Dc Tcucenltu, hlu We VIII tt'
back to n gold basis. The problem Is so
complex tina It Is difficult to prophesy,
but / believe that this reconstruction
period will be faced by the American
investment public with a smaller loss
and that we will come out of II in q
better position than n country in the
world.
IL have heard II prophesied by the
very wise that at the end Of the war
we would face a ~financia catastrophe,
that w~reckage and reputation would be
worldwide. do not believe this. This
regeneration work in business, this call
ing in OF credits will be gradual. the
nations must face a long period of
economy, they must face a long period
OF high taxation, Europe will not repu-
diate its Indebtedness. Europe will be
able to pay. and II we must bear a share
of the terrific destruction ] believe that
America will come out richer and In "A
stronger financial and business position
than ever before"
George b. Caldwell. ex-president OF
the association. made an address on
publicity as Affecting the Investment
Banker" in which he dwelt upon the
value OF advertising and suggested that
the association establish a weekly pub
lication under the direction of a salaried
publicity expert.
The association adopted resolutions
indorsing President Wilson'S foreign
policy.
The convention will continue to-mor-
row and Wednesday.