New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-10
Says Williams
Has Favored
The Railroads
Clifford Thorne Takes Issue
With Controller of
Currency

and oil shippers before the Interstate
Commerce Commission in the re-
opened Is per cent rate case, made
/ public tonight letter TO John Shelton
/ Williams, Controller of the Currency
! taking issue with a recent statement
by the Controller supporting the ef-
forts of the railroads to obtain higher
rates.
He challenged assertions OF the Con-
troller and dared him to appear before
the commission and question the accu-
racy of statements of fact offered there
in behalf of the shippers opposing the
advance.
The letter in part follows:
. Adds $50, ZOO, 900 Tax
81 have read with interest your
statement in support of the railroads
in their present attempt to increase the
freight tax on the American people an
other s5O,oOO,0OO annually. You have
given this statement to the newspapers
of the country on the very eve of the
trial Of the case before the Interstate
Commerce Commission.
81 will not even suggest that you are
lending the prestige of your great Of
flee to help the railroads stampede the
commission, for / know you would not
stoop to such q base undertaking, and
if you did so it would be useless, for |
have confidence in the courage and in
tegrity of that great tribunal to believe
that it cannot be stampeded. II that
were not true the time has arrived to
abandon the regulation of railroads in
America.
In regard to the value of our rail-
roads, as reflected in the market prices
on securities, you are quoted as saying
ing that railroad securities have sus-
tanned the heaviest shrinkages, and
that they have been tIe leaders in the
downward movement of values. chal-
lenpe that statement as untrue. If you
have facts to substantiate such claim
it is your duty to present them TO the
Interstate Commerce Commission at
once. But you know that you dare not
attempt to testify to such statement
under oath on the witness stand.
"There is not an iota OF evidence III
support of your claim that has been
offered by the railroads, or any hlreilng
of the railroads, in this proceeding:
The facts are precisely the opposite OF
what you claim, and we are going TO
prove it. If you doubt this, | invite
YOUR attendance at the hearing next
Friday before the Interstate Commerce
Commission, and ! dare you TO ques-
ton the accuracy of solitary state
ment of fact that will be ohered on
behalf of the national organizations
of livestock shippers, grain Shippers
and the Independent oil men 81 inc
United States, who are fighting this ad-
vance.
"These organizations have an aggre-
gate membership Of over million
shippers. They are entitled 20 re-
spectful hearing before tribunal not
subjected to pressure or OUTSIDE IN
1uences. Unless you can SUBSTANTIAL
these statements on the witness stand
under REORGANIZATION, your state
ments are not entitled to the conn
dence either Of this commission or OF
the American people.
Decline Due to War
Representative railroad securities as
o cIass have declined in value at less
10 than those of industrials, public
utiIities or even bonds Of the United
state government There is world
u,ide financial situation that has at-
fected the borrowing power OF an men
and of all nations. The decline IN
security values is not due TO made
ou.te railroad credit or inadequate
abroad earnings; it is due to the war.
w., Nus. know that fact to be true.
"Last wear was a phenomenal year
I'D the commission undoubtedly an
ticipated a decline to some extent es-
necially during the coming winter lou
cannot have peak year every year
This never has been and never VIII pc,
in any industry on earth. A carefui
cstimate of future. earnings was made
bv the commission, and the amazing
fac. has developed since that decision
that the actual net earnings OF these
Eastern railroads, instead OF falling be-
low or eaualling, have actually ex-
ceeded the expectations OF the com
mission. This fact Will be conciu-
sivelv established on record.
an this wild scramble for proiiteer-
ING and in the constant placing of ad-
d;tional tax burdens of all kinds and