New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-08
P. r. r. President Gives
Reasons for Insecurity of
Company's Credit
Aid May Be Necessary
He Suggests Policy of Greater
Government Sympathy Would
Solve Financial Problem

al this time would be JustIhaole Only
asan emergency measure This state
ment was made yesterday by Samuel
Roa. president Of tho Pennsylvania
psu~oad. at the second days meeting
Of the eleventh annual convention "i
the Association Of Life Insurance Pres
idents in the Hotel Aston. Unable TO
be present because Of his work on the
railroads war board Mr. Rea had ms
message read by a. J. County, vice
president Of the Pennsylvania RAN
road. &C.,.
Arer pointing out that railroad
credit in the United states was threat
ened Mr. Rea said: "Their credit c"2
10 sustained and their usefulness IN
creased through the adoption by inc
regulating authorities Of respons'Dle
and unified policy Of fair treatment }"
the matter Of rates.
Mr.. Rea explained that a poIcy o,
Greater sympathy for the problems OF
tho railroads would ordinarily soI'e inc
Question Of keeping railroad securities
attractive for the public, but added '' ,'
-. --o.s,,ro of war conditions might
make il advisable for the government
% make direct loans to the railroads
az 40 not wish to be understood as
soy;,g that a government loan mlgh'
uot bo desirable expedient IT, una''
na- conditions. the entire capital mar
- &c % be absorbed by the govern
ut Rut it should be regarded as an
1.aa5ie,, only. Unsuitable, If at all as
-, emergency measure. Government
financial aid IS not new thing ana IL
a-o,ld NOT be a eifr'Railroad revenues
u,o,ld have TO be made large enough "
oorr tbe interest and their credit sou"u
erougb 20 repay the principal sum
Tboso obligations would constitute
e. call on the resources Of railroads
aoss;sted. Let no one make the ta'ai
~ 81 snprosing a government loan
I'D serve as a substitute ior adequate
f,o;ob. rates. for it could not"
I1 diagnosing the causes Of {ne
a,trooteDed insecurity Of railroad
credit" Mr.. Eea said; ..i.u
orbere are other causes a1ec'ins
...1-oo3 securities besides the lack OF
nrcDer and equitable regulatory pol
;cy We are in most extraordinary
war. Large amounts Of our securities
hold in Europe have been returned lot
.,,o Securities Of foreign countries
and nur;ctDalitios have been sold here
having very much higher returns than
our railroad bords and stocks. Our
Government has very nearly monopo-
lied the capital market win Dohos
bearing rising rates OF interest anu 20
the small investor taN free. hlgner
,.It,,r,. osr.eJ and increased dividends
Maid i'm many of our industries arc a
fsCtor Railroad dividends. however
stand still and may faii.'
Get Only Little Sympathy
Al. County. after reading Mr.. Rea's
address. added:
81 cannot Vet accept the view that
the recommendations % the Interstate
Commerce Commission of December
are an admission that the commission
has not the requisite courage 20 grant
ADEQUATE rates. and that this is an
other demand that the railroads make
bricks without straw 20 eventually
force the government to take over the
railroads and guarantee fair return.
If the fair return ls allowed no guar
antce is required ] interpret these
recommended ons as a serious attempt,
long deferred, 20 strengthen the rail-
roads aud improve their credit, and 90
provide at last responsible system
Of public regulation. The situation
cannot any longer be trifed with with
out great dcrrimont 20 the nation.
"The time for Russ aniZing the rail
roads with fine phrases and extended
arguments is passed. The prompt and
equitable solution through fair rates IS
overdue. but is imperatiyely required.
rot only that the railroad facilities
which the country so urgently re-
ouires may be extended, but 20 restore
railroad credit and Che value Of rail
road securities. which form so large a
part Of the credit base Of the whole
country"
Urges Excess Profit Tax
An excess profit tax TO be levied on
the earnings of the railroads after
their freight rates have been adjusted
so as 20 enable an OF them TO earn q
lalr return was urged an an ADDRESS
by s. Davies W2rHeld. Of Baltimore,
the president Of the National Associa-
ton Of Owners Of Railroad Securities.
The fund thus derived, Mr.. Wartieid
recommended, should 20 into a govern
ment fund 90 purchase equipment to
be leased Co the railroads lie added
that government loans 20 railroads now
seem necessary.
In O plea 90 establish reclamation
camps FOR young men who are unfit for
service In the armed forces Of the ma
tion. Dr.. John H. Quayle, Of Cleveland,
described the causes Of the large num-
Der Of reflections Of men for physical
reasons as follows: "The answer is
soft living. hereditary conditions. We
nereal diseases. excessive use of to-
bacco and alcohol. tho lack Of disci-
pline IN youth and what call TWEEN
tieth century habits which consist
Of wine. women and song
Or. Quayle estimated that 90 per
cent Of the rejects could be- reclaimed
after training ir camps for six mon MS.
Woods Defends Merit
System for Police