Evening star., 1917-05-21
PLEA FOR STERILIZATION
OF RAILWAY SECURITIES
s. Davies Warfeld Presents View of
Holders, and Explains Purpose
of Proposed Conference.
Special Correspondence of The Star.

Special Correspondence of The Star.
NEW YORK, May AIS. Davies War
field, who called the conference OF
owners of railway securities to be held
in Baltimore Wednesday. was in New
York Saturday. Mr.. Warf1eld said:
This conference viii be attended by
all classes of investors in securities
of the railroads and those interested
therein from different sections of the
country. The greatest volume of Sc
curities of any one enterprise in the
world owned by the public represents
railroad property to the value of
$17, 900, 600. Railroad securities are
scattered throughout this country and
among our allies. Stabilizing these Sc
/. curities-many of them by law made
legal Investments in which millions of
money Of estates and institutions are
invested and on which hundreds of
thousands OF people, women and chill
dren among thema depend for their lix-
tihg-becomes now very important.
Life and fire insurance companies,
savings banks. mutual and other finan-
ciaI institutions, charitable institutions,
individuals by thousands, have their
money in them. The country is wait
Ing to know whether part of the
$525,000, ,000-the extra cost to the rail-
roads this year and last year through
increased prices alone-will be secured
to them through increased rates to en-
able them to live and maintain their
credit. The amount asked for will not
even make up this increase in cost of
railroad operations-s525,0 200, 900. On
value of their huge volume of securi-
ties and on the value of railroad se-
curftfes depends. in turn, the value of
securities of many enterprises, for the
american railroads are the largest pur-
chasers OF material and supplies in the
world.
We are asking all the elements men
TONED from the smallest to the largest
70 contribute to our liberty loan They
viii do so. but their financial ability to
do so is increased or lessened by their
ability to use their income from their
investments or to make use of their in
vestments. including railroad securi-
ties. one way or another, either as a
credit or by sale. So we have antendIess
chain. Impair the credit of this conn
try's largest enterprise, affecting bill
hons OF investment and millions of
people ana we lessen the purchasing
we should not lose sight of the po-
sition OF the interstate commerce com
mission. On the one hand thew have
opposition OF shippers to increase in
the railroads asking for increased
rates. The executives of the railroads
have presented their case from the
operating standpoint The commission
enould now near the credit position of
the carriers Of the country as re-
nected in their securities and in their
inability to economically finance thera-
selves by additional sales of their Sc
curities.
The south where I live with its mil
lions of acres of unused lands is con-
cerned in the present situation. Ad-
verse decision on questions involved
means serious curtailment in railroad d
development with its injurious effect on
southern industrial and agricultural
advancement. all of which becomes
most important in this time of war.
This is aside from the effect on rail-
road securities, of which the south now
holds directly or indirectly q consid-
cradle amount.
This conference should find the
means to properly bring before the
public and those dealing with uues-
tions affecting the railroads realiza-
tfon that an acute situation in the af-
fairs of the railroads is here which
shortly is to be relieved or made more
difficult by the decision to be rendered
by the interstate commerce commission
on the question of whether the rail
roads shall be permitted to iucrea Sc
their rates. The owners of the securi-
ties of the railroads-those who will at :
tend this conference-should now be
heard