Evening journal., 1917-05-26
Railroad investors Organize
TO Protect Rail Securities

road Securities was organized here
today at a meeting of inventors from
all parts of the United States, repre-
senting over SO. 900 100000 OF railroad
investments. S. Davies Warheld, pres
ident of the Continental Trust Com
pany. of this city was elected pres
ident OF the association. The following
declaration of principles was adopted
The National Association of own
els of Railroad Securities has for its
object the protection of the credit Of
the railroads of the country. The rail
roads represent I'm capital approx
bately 1900 100000 Together thev
constitute the greatest business or
ganization in the world. and the great
est aggregation of capital. They are
the arteries of the nation and conse.
quently the arteries of trade. What
ever adversely affects their credit
correspOndingly affects the credit
structure OF the country; it affects
railroad efficiency and hence the
proper and effective conduct Of war
Upon iheir efficiency and prepared.
ness at all times depends the indus
trial and agricultural prosperity of
the nation, as well as the insurance
in times of war of one of the coun-
try's most effective agencies in its
conduct.
The securities of the railroads are
owned as follows
BY individuals outright numbering
about l,O0O,O00, owning over 100000
100000
BY life insurance companies. with
5000 600 OF policies in force. repre-
senting total OF Sl55O,OO0 900.
BY sayings banks with 10000 600
depositors, representing $4,000, 600
BY fire and marine Insurance com
panies, casualty and surety companies.
with holders representing a total Of
S649 600 900
BY benevolent associations. col
leges. schools. charitable Institutions.
etc, $3.50 100000
BY trust companies. state and ma.
tional banks $685., 100000.
Balance held i'm channels not emu
merated, mostly abroad
"The life insurance companies have
an army OF policy holders owning in
surance policies of an average amount
OF 5000 each The proportion of the
money belonging to the policy holders
ana invested by their respective in
railroads represents approximately 25
per cent. of all the investments held
by the life insurance companies
therefore every small policy holder
OF ST 900 or less and every other
policy holder of the $4,000 600 of life
insurance policies is an indirect own
or or investor in the securities OF
railroads to the extent of 25 per cent.
M fr, D. L.
company represented by his life in.
suiance policy And his policy in
most cases is to insure the mainten.
ance Of those who are to come after
him
without presenting in detail simi.
lar comparisons in the case of holders
OF hre insurance policies. which pro-
tect policy-holders against confagra-
ton savings banks with their TO-.
100000 depositors. all with their pro
rata indirect ownership in the rail.
] road securities owned by the banks:
! nre and marine insurance companies
! surety and casualty companies; bene
VIOLENT associations. colleges. schools
and charitable institutions; trust
companies, state and national banks
! win their pro rata interest OF their
! stockholders, suffice it TO say that in
the aggregate over $4,000. 900 people
halt of our population, are either dir
ect or indirect owners Of or investors
IN the securities of the railroads of
me United States They are, there.
tore, intimately concerned i'm what.
ever affects railroad credit with its
corresE Eonding effect on the securities
OF the railroads they own or i'm which
they have the indirect interest men
toned above.
Through years OF abuse OF the
railroads state of mind" has been
created which seems to forbid the
consideration, in a spirit of fairness.
or questions OF vital consequence to
the railroads and those who in good
iaith have invested their money in
their securities. The present day
owners of these securities. represent.
ing millions of our citizens. should be
considered I'm the settlement of these
questions and not made responsible
for the acts OF a few men who NAV.
IN the past, have unduy profited al
! the expense of the properties thew
| represented. The time has passed for
/ this. Laws have been or can be en-.
acted to prevent occurrences. The
] real owners OF the railroad properties
/ the owners OF the securities, should
now be heard
We call upon the press OF the
| country; the millions OF men and
women who have their money in rail
] road securities represented either by
| the bonds or stocks of the railroads
or by the life insurance policies they
own and through which they are in
terested in the securities OF railroads
OF in the sayings banks, and upon ali
others Interested, to do their part in
bringing TO the attention of the public
and those in authority the necessit,
OF maintaining the credit of our rail
roads. the greatest of all enterprises
and which have done so much more
than any other single agency toward.
the development and the prosperity OF
our oountry-the richest nation in the
world"