The sun., 1916-10-05
RAILROADS IN PERIL,
SAYS SANTA FE HEAD
Wilson Attacked by Walter D.
Hines Before Investment
Bankers Meeting.
INVESTORS ARE AFRAID
Larger Federal Regulation
Urged to Protect Bond
and Stock Issues.

CINCINNATI, Oct. 4.-waiter .. Hines.
chairman and counsel Of the Atchison.
Topeka and Santa Fe Railroad. ad-
dressed the NTH annual convention OF
the investment Bankers Association OF
America. in session here to-day. en-
phasizing the necessity OF revising the
laws s as to the raising OF
adequate railroad capital through the
issue OF sound and attractive secvritiea
Mr.. Hines asserted that the legislation
pu, on the books in 1919 and 1914 had
increased the powers Of the labor unions
10 a dangerous degree n had enoour-
aged them to their climax Of arrogance
which came last August"
He said that with the labor unions
welding the power accorded them at
Washington the railroads were left In a
position full OF danger to the public ana
full OF encouragement to the prospective
investors. This situation. he said. would
continue until remedial legislation was
adopted.
way fer Further Burdens.
Mr.. Hines areued that II the Govern
ment remains helpless against n de-
mard Of the lapor unions II must OF
necessity, as II did In the case OF Presi-
dent wilson's surrender. bring all Its
pressure to bear on the railroads to per-
suade them TO grant the labor mems De-
mands 90 as to avert q calamitous strtke'
Failing in his the next step u TO cal on
Congress for hasty legislation to ENFORCE
what the railroads have declined to con-
cede. said Mr.. Hines.
III such legislation proves constitu-
, tlonal,'' he added, the railroads must
/ try 10 shift the burden 10 the public. and
TO do 30 they must get the approval OF
the Interstate Commerce Commission
and. TO some extent. OF state railroad
commissions. The continuance OF such
conditions is a menace TO the
OF present and future railroad Seeuri-
ties
Mr.. Hines suggested legislation which
will substitute some orderly and re-
sponsible method OF settling labor dis
putes to avoid the terrorism OF the strike
the superseding OF State by national reg
ulation and legislation BY which the
power TO issue stocks ana bonds Will De
derived from the nation and the method
OF their issue will be supervised by the
Federal Government
"A large part OF the total net indebt.
edness OF States and municipalities,
which aggregates more than 3t.ooo.ooo
600 to-day. has been incurred unde
hastily drawn and Inadequate statutes.'
sad William c. Baker. Jr., Chairman oi
tn. municipal bond committee. Many
millions to-day represent the cost OF I'M
provemen,s which long since have beer
thrown into the scrap heap. 90 that tbs
credit Of taxing power which should be
-, g. arAaA mazda holm
drs ined 10 pay for the dehcit OF former
generations. Sound legislation .s needed
20 remedy this.
steps should be taken by all invest
ment bankers 70 improve h laws re-
laiing TO municipal bonds. None OF th'
Investment hankers are averse to munich
pal borrowing. but are averse TO reck'
less borrowing. Investment bankers
should limit the life OF municipal bond.
to the probable l!fe Of the improvement
sect Rich Quick Brokers.
The report OF the publicity comm!tte,
condemned the famboyant advertis. ng o.
get rich quick" brokers and suggested
as a way to curb. what the report termec
This y p Of promotion" hat the Amer
lean Newspaper Publishers Association
be notified OF those who are doing thii
kind OF adverts sins.
The report stated that the secretary o
the Publishers Association had been in
structed to notify all newspapers q
eliminate this kind OF advertising. A
a further means. II was suggested tina
each individual member Of the Invest
ment Bankers Association stop advert!s
Ing in newspapers that persist in carry
? ing the advertising Of these get r!cl
quick brokers after these newspaper
|, have been acquainted with the qualit,
Of the advertisements.
Lewis b. Franklin Of New York wa
!; reelected president. Frederick r.. Fento'
? OF Chicago and J. Sheppard Smith Of S
Louis were reelected secretary n treas
urer respectively. Alien @. Hoyt, Ney
= York John +. Blunt. Jr. Chicago Bar
rett Wendell. Jr,, Boston; II. = Wright
, Kansas City. Mo. William q. Baker
|, p.l,Ipora ware elacted yire-nresidept