Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-11-10
ECURITIES DECLINE:
LESS THAN OTiII:US

fidencc either Of tho commission or Of
the American people
SECURITIES DECLINE
LESS THAN OTHERS
Representative railroad securities
as a class have declined in value as Il
less rate than those Of industrials.
public utilities, or even bonds OF the
United States government. There is
n world wide financial situation that
has affected the borrowing power of
all men and OF all nations. Til" decline
in security values is not due to m
adequate railroad credit or inadcQua;c
railroad earnings; il is due 20 the war.
You must know that fact 10 hc true.
This great human catastrophe, that
is paralyZing SO many manufacturing
and industrial enterprises not dtrcctl%
connected with the making of war mu
nitions, has entirely failed to !nJurc
the railroads. for the record. when
completed, will show that tie railroads
during the past two years, while this
great struggle has been wag!ms hay"
prospered better than during amy other
wear since the steam engine was in
vented.
You state: II a way cannot b."
found now l. reduce the prices OF ma
teriais and the cost of labor TO u nor
NAL basis, and this for the present l.
hopeless, il seems clear on the facts
before US thai a revision aud nodl-
fication OF the fabric OF rates 10 meet
these new conditions has become i'm
perative.' You seem TO overlook two
very salient facts: First. the purpose OF
the surplus over $l.oo0,o0o,oo0 which
our railroads have been permitted TO
accumulate during the past twenty
five or thirty years; and second, the
enormous increase III traffic during the
past few years.
st is true that the cost Of labor and
of railroad supplies has gone Gp. but
it is also true that thHrc has heen such
a remarkable, increase in traffic that
over and alloy. all these added cN-
penses, American railroads rs whole
during the nscal yca- ended June %.
1917. earned net more than H. amy
other year, with only ono exception. in
their entire history.
ACTUAL NET EARNINGS
EXCEED EXPECTATIONS
The Interstate Commerce Commits
sion on Juno -, 1917 rendered ,hcir
decision in :hc u per cent case. The
record showed that the Eastern rail
roads as a whole last year earned over
10 IL per gent on all thcr capital
stock; this. Wiz uc; 'Abovc all expenses.
above all taxes and above all interest
on bonds anG debt. And yet Tho cam
mission gave these Eastern carriers an
advance OF approximately tlopoo".uoo.
Last year was a phenomenal year. and
the commission undoubtedly an,ici-
patcd a decline TO some ,N;cui. cs.
pecially during the coming winter
You cannot have Il peak year every
year. This never has been and never
will be in any industry ON earth
careful estimate OF future earnings
was made by the commission and the
amazing fact has Developed since thar
decision that the actual net earnings
OF these Eastern raih Dads. instead of
falling below or equalimg. have ac'u.
ally exceeded the expectations Of the
commission. THIS fact wil! be concIu-
sively established OF record
"In this wild scramble for rrodtcer.
ing and In tho constant placing of adj
ditional tax burdens Of all Kinds and
character. agGrcgating hundreds and
thousands OF millions Of dollar. upon
the American people wuuld it not ns
wise to be sure OF YOUR ground h..
fore recommending an additIoua, tax
equivalent to > per cent on ano,hci
2 billion dollars to be paid by tho ship.
pers OF this country?
Before reaching couclusi-vs n
would he well for you as ycu as Other
public officials, 10 lean 20 wal, uu,t
Z you have heard both sidcr
Most r.spectfunv Yours
"CT.JESGrIl 'Tiritps,l-.,.