New-York tribune., 1918-12-11
Bankers Want Rail
Lines Returned to
Private Ownership
Convention at Atlantic City
Demands Commissions Be
Made Responsible for the
Welfare of Corporations
Staff Correspondence

charging Of government supervisory
commissions with responsibility for
the positive welfare of the corpora
tions they regulate. This general prin-
clple embodied in two important reso-
lutlons were adoped to-day by 300 dele
gates at the second days session here
OF the convention of the investment
Bankers Association of America.
In graphing with the railroad conun-
drum, the fnanciers frankly ad-
mitted that they were unprepared to
suggest plan and technique for
the future operation of the roads, but
were merely able to sketch the general
philosophy which should lie behind a
specific programme.
Sentiment Unanimous
After free interchange of ideas on
the subject by leaders of finance from
all sections of the country this resolu-
ton, designed to end what delegate
called policy under which "heads we
(the public win and tails (the in
vestor) loses" was unanimously adopt
ed:
RESOLVED, That the association put
itself squarely on record at this time
as opposed to public ownership Of rail
roads or permanent public operation.
and emphatlcaly in favor of an early
return to private ownership under such
altered methods of regulation as will
insure sound railroad credit and an
adequate transportation SYSTEM
This resolution was presented in a
report by John E. Oldhom a vice
president of the association, for the
railroad securities committee.
AT the evening session the delegates
approved an analogous recommenda-
ton regarding public service commits
sions, which O. B. Wilcox, of Bon
bright G. Co., Inc, of New York, pro-
posed in his report for the public ser
vice securities committee. This read
as follows:
"Resolved, That the capital necessary
tor the development and expansion of
adequate and efficient public service
can be secured, in competition with op-
portunties for safe and profitable in
vestments in unregulated enterprises,
only II the state and municipal bodies
regulating public utilities by just val
uations of property devoted to public
use and by fair rates for public SER
vice provide for the payment of all
costs of operation, permit the replace
ment out of earnings of property worn
out or no longer useful, and allow the
accumulation of funds sufficient to as
sure the credit of public utility COM
panies and the continued payment of
talr returns en- the capital invested"
Responsibility Was Lacking
After describing the chaos in senti-
ment of the railroad executives as re-
yealed in their meeting in New York
last Wednesday, F. J. Lisman, of f. J.
Lisman & Co., of New York, said: 81
think the only point which everybody
is agreed on is that the previous situa-
tion of the railroads was absolutely un-
bearable and impossible. There has
been in this country a system of regu-
lation without responsi ibility."
II. ?. Wright, of the II. P. Wright
Investment Company, of indianapolis,
touched the political side Of the prob
lem. saying during the debate:
II would like to suggest that, while
| am thoroughly in sympathy with the
spirit Of this resolution. it seems that
the question for us to consider at this
moment is the matter of politics. You
cannot help but recognize that there
is a large element in our law making
bodies in Washington that are leaning
very strongly toward this semi-social-
istic idea of public ownership of every
thing. viii we have more efficiency in
dealing with these people in the atti-
tude with which we have got to go to
them, If we have strongly declared
position beforehand like this, or can
we work more effectively with that
class of people if our position is per-
haps less strongly declared?"
The chair was empowered to appoint
special railroad committee for fur
ther investigation of the subject, with
the understanding that it would pre-
sent its conclusions to Congress-
Aside from their absorption in the
specific questions of readjustment in
the United States, the delegates be-
came greatly interested in the world
relations of the United States as the
result of an address by George E. Rob-
erts, assistant to the president of the
National City Bank.
Roberts for McAdoo Plan
After approving Secretary McAdoo's
United States continue TO extend cred
its to the Allies possibly to the extent
of $1,50o 100000 more, Mr.. Roberts
said: I'VE cannot participate in the
reconstruction of Europe on sixty or
ninety days time. We can take no
part IN the reconstruction of Europe
II we lnslsc upon pay for it now; we
must arrange among ourselves to con-
vert our compensation into an invest
mcnt."
The speaker contended further that
even from our own selfish standpoint
the early payment OF the principal or
the interest Of the Allies debt to the
United States, on which the interest
is now $500,000,0O0 a year, would be
undesirable and is practically impossi-
bic for physical reasons.
II take this view" he said, mot be-
cause the debtors are unable to paw,
but because it is mutually advanta-
geous that the payment of the obliga-
tions be deferred A creditor nation
such as the United States has become
during the war;" the banker continued
(which expects to collect balances req
ularly in gold will never be able to
exercise leading position in the
world.
Must Modify Plans
Explaining that Europe's debt cam
not be paid off in goods, because the
balance lies in the other direction
Mr.. Roberts, referring to American as.
plratlons for an unlimited expansion
of the export trade said:
"Frankly, l think we must modifv m
some extent our enthusiasm about nro-
duclng. everything we consume and
supplying our own wants and exnect
70 nave far amount of real trade
win ouher countries. 1t will not be