Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-03-10

of the other dividend-paN wing rallroa as
was generally assumed to have been
substantially strengthened by the as
sured outlook for the passage of the
railroad bill and many on the street
were busy figuring which properties
would be the best to buy for invest
ment as well as for speculative profit.
c. & @. and B. & Q. were both spoken
of as being in position from which
substantial advances can be made. and
there We're many who regarded South
ern Pacific with pronounced favor be-
cause of the possibility that it may
distribute its entire allotted profits in
dividend payments 1t was insisted
that it was this possibility that war
ranted Southern Pacific in selling
higher than some of the esta blished
: per cent dividend payers, although
southern Pacific is only on a per
! cent basis.
Equitable Trust Company-Relief has
been a long time in coming to the
railroads. but let us be most thankful
that it was not further delayed. I'm
agine the effect upon the market for
railroad securities of the appearance of
the January income accounts now COM
ing to light. had we no assurance of
either higher rates or government
guarantee.
The Pennsylvania railroad. for ex-
ample. long regarded as the premier
Am rican system. reported a deficit of
S2,930,1Sa for the month after payment
of operating expenses and taxes only.
By comparing this result with those of
previous years. we can see to what
extent high prices for wages and ma
terials, aided by congestion and bad
weather, have slashed the earning
power of our trunk lines.
Henry Clews' Views.
We did not enter the war for selfish
gain: we have none but the Hottest mo-
tives in endeavorins TO bring the strug-
Z oil an tctn oil
the me time il is obvious that the re-
suits of the war inevitably will provide
benefits of a mat erial character. Before
our own participation we had already
broadened out: our more local viewpoint
had given place TO one of the widest in
ternationalism. We had paid back to our
foreign creditors the debts incurred for
the rapid development of our country
Our foreign trade with neutral as well
as beligerent countries had increased by
leaps and bounds. Dollar exchange was
rapidly being substituted for sterling
exchange and we We're in first place as
the worlds bankers. All this was d
mere founda ton for what is happening
since we ourselves We're forced TO be-
come a belligereut. We now are build
ing ships such a scale as to insure
that the American flag will, with peace.
once again be seen on all the seven
seas: we are loaning billions to the
countries with whom we are now aSso-
ciated in the war.
These billions. in fact. represent in
vestmeuts of our people, for they are
the proceeds of our own liberty bonds,
which our Treasury in turn is loaning
a the same rates it itself is paying for
the funds. The governments to whom
we are loaning are placing with our
Treasury bonds of their own, identical
in maturity and interest with ours.
! These they guarantee to pay principal
and interest. The real net result il will
be observed, is that our people are be-
coming investors on scale beyond
the most optimistic dreams of no more
| than five years ago. Instead of sending
| interest and dividend payments to
creditors abroad the reverse on a
! largely increased scale will now be the
case. This phase will expand the longer
the war lasts. OF great importance is
the fact that our people will have more
generally learned in a practical way
the art of saving. such would have
been possible in other way. This is
change for the better that is funda-
mental"