The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-09
RAILWAY MEN AND
BANKERS CONFER
Mystery Surrounds "Informal
Luncheon" Arranged For by
Howard Elliott.
DISCUSS THE SITUATION
Lovett Willard, Bronner,
Hannauer and Morrow Said
to Have Attended.
DISCUSS THE SITUATION

What 10 considered in many quarters
to be the most important conference held
30 Tar this year on the railroad situation
took place yesterday afternoon at a
luncheon arranged for by Howard M
iiott, chairman OF tho committee Of the
Association Of Railway Executives. and
attended by three members Of that COM
mittee and three representatives of the
big banking interests Of the city.
While no oficiai announcement was
made as to the purpose Of the meeting
nor OF Its result. II il understood that
those present included. besides Mr.. FL
lott who L. president Of the Northern
Pacific, r. g. Lovett of the Union Pacific.
and Daniel Willard Of the Baltimore
and Ohio. representing the executives
committee. and Harry Bronner of Hall
garten q Co., Jerome J. Hannauer Of
Kuhn, Loeb 4 Co, and Dwight W. Nor
row of, j. Z, Morgan q Co. representing
the financial interests. The object Of the
meeting. 1t was understood, was to dis
cuss the needs Of the railroads for
every month. including July Of this
year, and to develop plans to meet these
needs.
After the luncheon Mr.. Elliott de-
o'ared that It was a private function Of
an informal character and that there
was nothing which could be given out
regarding the meeting. He supplemen ted
that announcement later In the after
noon. however, when he said that II was
attended by three members OF the exec
utives association and three bankers for
discussing the general situation as re-
CARDS railroads No definite conclusions
were reached, he declared.
In quarters close to the railway execu-
tives' advisory committee II was learned
that the financial necessities Of roads
for July ! are such as to give grave con-
Germ to the railroad men as well az to
the Railroad Administration, which. is
reported to be deeply interested In steps
being taken to meet the situation. 1t
Is known that requirements for July
will include approximately sla0, 0o0, 600
for interest and dividends alone. In ad-
dition there will be a tremendous sum
eeded to care for maturing obligations,
including equipment trust certihca tes
short term notea &C. Just what these
obligations will aggregate II is impos-
sible to ascertain. 1t was said at the
offices of the railway executives ad-
visory committee that the figures are
being compiled and that they will I'M
doubleday run into hundreds Of MILL
IONS"
In one quarter, usually we'll informed.
1t was estimated that the obligations
would aggregate between S45e. 900 600
and 1900 900 and that possibly they
might mount as high AZ 3750,000, 900
when the figures were all compiled. In
any event II Is known that they are ire
mendous and that the railroad men are
studying the situation very closely so
that every avenue Of relief may be
utilized. 1t is not believed that the obli-
cations maturing between now and July
l will be refunded to any appreciable
extent.
With the April requirements dis
posed Of. those OF May arranged for,
the railway men and bankers are able
to turn their efforts entirely toward pre-
pairing for the July 1 needs. While the
quarterly disbursements of the roads
are large the semi-annual requirements
are greater. and on January 1 and July
l the real tests will come. rather than
at the beginning of the intermediate
quarters OF April and October.
No intimation has been forthcoming
from Washington as TO what will he the
attitude of the Railroad Administration
toward any arrangement that may be
made by the bankers and the railroad
men. In important quarters belief is
that the Administration win realize the
seriousness OF the situation and not hest
tate 20 ratify any reasonable agreement
which may be arrived at 1t 10 likely
that other conferences win be held fire.
quently In the near future in order that
more definite plans may be laid for taxi
Ing care Of the July obligations and thu I
an agreement satisfactory to all con-
cerned will be made soon Is the general
belief In the financial district.
The air Of secrecy which surrounded
the meeting yesterday added much to Its
lseeming Importance. Some Of those who
attended the meeting were very chary
OF remarks while others refused abso-
lutely TO comment upon II. Mr.. Elliott,
who arranged for the gathering while in
Washington earlier in the week. was the
only ono who would have anything TO
say about the conference, and he main
tained that It was OF a strictly informal
character and that no definite conciu-
| sions were reached.