Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-12-08
Critical Financial Period

National Association Of Garment Man
ufacturers at Hotel Astor. has called
rublic attention to a serious financial
prospect created by the maturing OF
Yearly $1,000, 00O 600 of securities during
the coming year. In opening his ad-
dress he said: This situation is giving
concern to banks and investment
houses throughout the country, and
definite action for it's solution should
be taken as soon as possible. as
measure CT confidence. 1t seems cer-
tain tha, the government must take
some action to meet the problem in the
interest of both public financing and
general business"
Mr.. Sisson suggested. as reasonably
would be found good, some bad, ana
some in the twilight zone between, yet
most of them are TO be cared for IN
some manner, and the situation cannon
be successfully handled without CO.
operation. There, he saw the text OF
his address, "Our Personal Response
bility" He foresees that should SOL
vent corporations be unable to pay
their obligations at maturity, the Sc
curity market would be demoralized,
and government finances made increas-
ingly difficult Hence, cooperation
would so far toward clearing up the
natural feeling Of uncertainty in finan-
cial circles. Otherwise. business may
experience a very serious setback If it
does not suffer disastrous corse-
quences.
Mr. Sisson cites figures which serve
more to confuse than to elucidate In
+ the mind Of the average hearer or
reader, because Of the stupendous ag-
grcgate. He says an estimated sum
mary Of obligations which will have
to be taken care of in this country
during the next twelve and a half
months, shows that the value OF ma
turing municipG, railroad. public utili-
curities total more than s1.300.oO0. 600:
foreign loans placed in the United
States since August I, 1914, by govern
ments, municipalities and other bor-
rowers. amount to a little less than
S50000o,o00. with grand aggregate OF
more than sl,SoO,O00.0Oo. He says that
| c;cto ne
will be necessary to care for the re-
| funding of this vast amount of securi-
ties
| Mr.. Sisson spoke of the precarious
transportation situation. and the be-
ginning Of the dawn Of consciousness
| in the public mind as better under
! standing of the incalculable Importance
Of the railroads in winning the war
is had, and again lesorted to figures
! 10 free his mind. He said that during
the first six months Of this country's
participation in the war, our railroads
handled Is per cent more freight traf.
! fic than in the corresponding months
Of 1916. record year up to that time;
and approximately so per cent more
| than in the same period Of 1915. In ad-
dition, the railroads have safely trans
ported nearly a million and a half sol
diers, and these troops were moved
on 27o0 special trains. This immense
amount of work was accomplished with
practically no increase in locomotives
! or cars and yet was equivalent to the
addition Of 5000 locomotives, and $780,
600 cars to the various lines. And what
was more significant. the railroads gen.
orally had been handicapped by g
shortage Of employees amounting to
twelve and half per cent. Of the total
| number in normal times. The war il
! fact has thrown an additional burden
on the railroads estimated as equiva-
lent to carrying 12o.ooo.oo 200 tons OF
! freight one mile, or more than the com.
bined freight traffic for one year in
normal times of Great Britain, France
Austria, Russia and Germany. Blu,
the Interstate Commerce Commission {
monthly reports disclose a decrease ir
operating income Of the large railroads
Of the United States Of $5o.o0o.0O0 for
the first nine months of 1917.
! To us the most interesting part @,
Mr.. Sisson's address is the reference
to the new era In American railroad
history. which is being inaugurated by
coordinating 3S railways east Of Chit
tago and north of the Ohio and Poto.
mac rivers into one huge system to
relieve congestion and help win the
war. The government has consented to
this revolutionary pooling Of equip.
ment which the law has long forbid.
den, because the exigencies Of the hou,
have made it mandatory. Mr.. Sissor
remarks: I'm this great crisis, the un-
written law of common sense has su.
perseded the artificial restraining order
On the statute books"
| Just how far state provisions mus,
be made subservient to federal law
and how far the federal government,
should so in it's permission to poo
revenues, to repeal laws forcing COM
| pak;kfa,, >arr~,;% coy,, hi n af inn n hot h