Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-12-13
GOSSIP OF THE STREET
FEW OPEN VIEWS
ON r. r. CONTROL
Frank Opinions on McAdoo's
Recommendation Scarce in
Financial District {.

usually willing to speak for the public on
| such matters, as the subject is con-
| sidered heavy one to grasp in its en-
| tirety.
| As one broker put it, when asked for
his opinion. '"How can I say whether
| such plan is better or worse than any
other, when even President Wilson had
no solution to offer for It, and when the
leading railroad executives of the coun-
| try are still wrestling with It, and up
! to the present haven't given the public
the benefit of their deliberations"
Personally" he remarked, 'I see no
better solution than.the one offered by
Mr.. McAdoo in sight, but / have an
! open mind, and IL any man or body of
| men can offer better plan, or one
which appeals to me as better, l will
| be very frank to acknowledge it. I
| hold no brief for the railroad execu-
| tives, but my honest opinion is that they
| are not the least anxious to return the
| roads to the old basis, and are ,sparring
1 for time till some way out opens up
They may conclude that Mr.. McAdoo's
plan is the way out and may urge Its
! adoption in q general way" - I
A prominent investment banker who
has been antagonistic to the taking over
OF the roads by the Government in the
first place, fearing eventual Government
| ownership, was frank enough to say
that, there are two standpoints from
which to view the fiye-year plan. From
the personal standpoint-the stand
point of the broker---such a plan will
| Kill all speculation in railroad securi-
| ties" he said. THE dividends and every
thing which now goes to stimulate spec
ulation will be ground out by machine
| and will be the same year after year
but, on the other hand. as an owner OF
railroad securities, must acknowledge
the element of safety is enormously en-
| hanced",
Still other financiers said they did not
approve Mr.. McAdoo's proposal, that II
was political move and meant govern
mental ownership Of the railroads sooner
! or later, and that. they claimed meant
Government ownership of public utii-
| ties in general. One banker who spoke
along this line said as far as he was
concerned he would like the matter OF
| Government ownership fought out now
in this country to a finish, and he con-
sidered that Mr.. McAdoo's proposal gave
an excellent opportunity for the pur.
pose.
One well-known investment banker
who had just returned from the invest
| ment bankers convention in Atlantic
City. said he was opposed to the five.
year plan, and that he was one of the
!
! declared unqualifedly for the return OF
the railroads without delay to the origi.
, nal owners-thc security holders. There
were a great many matters, he said, ir
connection with the debate on the sub
ject brought out which the public
| should know in the consideration of this
question of Government ownership.
1t will shortly be shown. he continued
how much the Government has lost by
fbair 20 ion III he nYs
thing will be self-evident, and that is Il
the original managements had been
permitted to override the laws and reg
ulations of the Interstate Commerct
Commission and the several States, as
Mr. McAdoo was empowered to do, they
would have made better showing. Z
Taking it as a whole. majority oi
financiers questioned on the subject
were in favor of the five-year or three
year continuation under Government
control. One brokeS mentioned tive
years, and said he did not believe thai
Mr.. McAdoo expected more, although
he asked for five years.
One of the most instructive and in
| teresting discussions which took place
at the Investment Bankers Convention
at Atlantic City, according to the prin-
cipal partner of leading investment
house in the uptown section, was the
! question bearing on the purchase by
this country of foreign securities in the
future If we are to maintain our posi-
tion in the financial and commercial
world as a world power. For years"
he said, I'VE have been a debtor nation,
and the end of the war suddenly hnds
| us a creditor nation on an enormous
scale. We are in a position as never
4 before to capture big foreign business,
but how are we going about it?'
.The situation sizes up to me-" he re-
marked, like a country boy away up,
say in New York State, who has sud-
denly acquired great wealth, and he
comes to New York, then he goes over
to Europe; and gets on train and
travels through, countries and among
4 people whose languages and customs he
does not understand, and he comes back
diHgusted after having spent lot of
money Are our business men going to
make this blunder' or are they going
to learn by the experiences of others
who have gone over these routes with
pleasure and profit? The. opportunities
now at the call Of American business
men and financiers are beyond concep-
tion," he said
There was revival Of activity in
foreign Government bonds yesterday,
with q somewhat better demand in evil
dence. Prices also advanced slightly.
Holders Of Interborough Metropolitan
41ss and New York Railways 4s and
adjustment 5s have been furnished with
plenty of food for thought thus far in
the current week by the rather pro-
4 nounced declines which have taken place
in these securities. A new low quota
ton has been established each day of
the current week. and the New York
Railways income bonds are now quoted
at the lowest price on record below $12
per $1,000 bond.
Railroad bonds were greately stimu-
lated by the success of the offering of
$10,500, 900 Chicago and Northwestern