New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-31
Traction Finance
On Verge of Smash,
Banker Declares
A. ]. Hemphill Says Lines
Must Have New Revenue
to Meet Added Costs or
Disaster Will Follow

A. J. Hemphill, chairman Of the board
Of the Guaranty Trust Company, in q
hearing yesterday before the Public
Service Commission on the proposed
increase of fares on Che lines of the
New York Railways Company, testified
that bankers are alarmed at the pre-
carjous financial condition of traction
companies IN this city and the state,
and that unless relief is afforded the
companies financial cataclysm will
follow the extent of which cannot be
measured. During the interrogation of
Mr. Hcmphili, Commissioners Ordway
put this question:
"Mr. Hemphill, in considering this
question of whether the New York
Railways Company should be allowed
to make charge for transfers at
points within the Jurisdiction of this
commission, We regard as one of the
factors to be considered what the eff
feet of that will be upon the financial
community toward the railroAd,"
"The present condition of the trac-
ton situation in New York and
throughout this state has filled bank
ers with alarm" he replied. "Unless
some relief is given there will be q
cataclysm from which VIC will not re-
cover for n generation. 1t will be i'm
possible for bankers ever again to
recommend to their clients securities
Of Traction systems to the service Of
which the growing towns and cities in
THIS great state are entitled
Situation Is Dangerous
Bankers and investors will not put
up any money for traction security.
Bankers will not recommend it-they
cannot. And. &c say, the situation is
one that fills them with profound
alarm. because the amount that is in
vested i'll this state alone in such Sc
cuYities amounts to considerably more
than a billion dollars, and we feel that
that entire structure is about to be
brought down, unless some relief is
given.
I've would like to see the commits
attitude on This question OF relief.
Il happened to have been IN the
past watchful OF this whole situation.
AND | must say tnat l am greatly dis
turbcd My own personal Investments
have been wiped out in fractions.
New Burdens Are Heavy
IN other communities. thew have
seen this very thing The traction
systems have had no increase IL rites
whatever N New York, and vet they
have been exposed to these tremendous
burdens. Taxes are no less, wage in
crenses have gone up probably 80 per
cent, material costs have gone up all
the way from % per cent to 109 per
cent.
Nov, if you find that, in giving
relief, that it has only been temporary
YOU have aided the situation you have
aided the bankers, and you have uided
the investors, and you have not hurt
The public because they arc getting the
benefit of all thu increases Of wages
and everything of tho kind that is go
IN on, ana tho traction system has
not gotten ole ioja OF relief.
None OF us recognize how the ewes
Of the whole country are focused upon
New Yors. If YOU gave relief to the
traction system in New York il would
be followed by general relief through
out the country, and | want to repeat
That II that relief does not come, we
stand on the verge Of catastrophe. so
Tar as this class OF investment is con
cerned, that can never be measured"