New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-05
BANKERS URGE
PROTECTION FOR
INVESTMENTS
Labor Attacks and Legis.
Iation Against Rail-
roads Deplored.

Cincinnati, Oct. Am insistence on
proper protection Of the capital in
vested in railroads and an appeal that
railroad mortgages be surrounded with
such safeguards that they may hold
their place among the prime invest
ments, was made here to-day by the
committee on railroad bonds before the
Investment Bankers Association of
America Convention. The report stated:
ave must endeavor to turn public
sentiment from its attitude Of antagon-
ism to one of fair play to the railroads.
We must use our efforts to prevent
that kind of financial Encouragement
which has resulted in disaster to some
Of our best systems and which to-day,
more than any other one thing, pre-
vents the recognition of the just needs
of the railroads"
Walker d. Hines, chairman of the
advisory committee and general counsel
of the Atchison, Topeka e. Santa Fe
Railway Company, made a plea for
legislation which will provide an or
derby and responsible method of set
thing railroad labor disputes as a sub
stitute for the terrorism of the
strike"
OF equal importance, Mr.. Hines de-
clared, was legislation whereby state
regulations reducing net income
through reductions of rates and in
crease of costs will be superseded by
national regulation; and legislation
whereby the power TO issue stocks and
bonds shall be derived from and the
method of their issue supervised by
the nation. All these things, he said,
were needed to insure the stability of
railroad reorganization plans.
The speaker declared the time was
ripe for dealing with these problems,
in view of the forthcoming inquiry into
the national railroad situation on the
part of Congress.
Cost of Municipal improvements.
William C. Baker, jr., chairman Of
the Municipal Bond Committee, in his
report to the convention stated that
large part of the total net indebtedness
of states and municipalities, which
aggregates more than $4,000, 100000 to-
day, has been incurred under hastily
drawn and inadequate statutes. Mr..
Baker said:
"Many millions to-day represent the
cost of improvements which long sine
have been thrown into the scrap heap,
so that the credit Of taxing power
which should be available for present
needs is being drained to pay for the
deficit Of former generations.
"Steps should be taken by all in
vestment bankers to improve the laws
relating to municipal bonds. None Of
the investment bankers are averse to
municipal borrowing, but are averse
to reckless borrowing. Investment
bankers should limit the life of mu-
nicipal bonds to the probable life Of
the improvement"
Election Of Officers.
Lewis B. Franklin, of New York,
was reelected president Of the associ-
alton, and Frederick r. Fenton, Of
Chicago, and J. Sheppard Smith, Of
St. Louis, were reelected secretary
and treasurer, respectively. Other
officers elected were: Vice-presidents,
Allen G.. Hoyt, New York; John E.
Blunt, jr.. Chicago; Barrett Wendell,
jr., Boston; Fl. P. Wright, Kansas
City, Mo-, and William G. Baker,
Baltimore. Board Of governors-Dan-
iel K. Drake. Los Angeles; Edwin
White, St. Paul; James n. Wright,
Denver; John W. Hallowell, Boston;
Stacey c. Richmond. New York;
Howard F. Beebe, New York; Lewis
J. Parsons, Philadelphia; William G.
Lerchen. Detroit; Charles II. Gilman,
Portland, Me-, and David A. Edgar,
ly;Iua,Lo.