The Birmingham age-herald., 1919-05-25
RAILROADS AND aGENERAL BUSINESS
Bx HOLLAND.

l New York, May 23-(Special )-Should congress so legislate-and the President approve the legislation-as to restore the
 railroads to private ownership by the first of January 1919, then the certainty that l this will be done will tend immediately to affect very favorably business conditions. This, at least, is the view taken not only | by railroad executives but by business men and by many of the financial leaders. The fact that at the meeting of the sav- ings banks and trust companies section of the American Bankers association which was held few days ago at White Sul- phur Springs the representatives voted l unanimously to support the so-called Warfield plan for the return of the rail roads to private ownership and adequate government regulation of the milroads, demonstrates sufficiently that the leaders in American banking life will aid in every way possible the government and the rail- road executives. ss1 The so-called Warfield plan which was worked out by Davies Warfield, who represents the National Association or Owners of Railroad Securities, is spoken of here the simplest, most reasonable and satisfactory proposition yet made tor the return of the railroads and their sub | sequent regulation and supervision by the government A few days ago one of | the leading business men of New York
 
 railroad matters, said that all that is needed in order to adjust the problems satisfactorily is the exercise of common sense. Many of the difficulties which l have been raised and commented upon
 are of no consequence They can be swept away, this authority said. in a moment and that seems to be the idea contained in the letter written by former Senator Elihu Root to MT. Wnrfield.
 l Many times it has been said of late that with peace negotiations satisfactorily completed and with the railroad situation lwell adjusted to the future needs of the country there will stand no serious obsta- cle in the way of the development of the great era of prosperity which awaits us if I've take advantage of our opportunities Both Senator Root and Mir Warfield Iagree upon one point and that Is a vital point With his customary acuteness and profoundness of thought. his masterly liability to reach directly at the central point in any issue, qualities which are Characteristic of Senator Root. he has jpointed out that the only vital issue in inc railway situation is the question of rates.
 l SENATOR ROOTS OPINION
 Senator Roots opinion does not differ from the one which has been maintained for a long time by the leading rilroad executives of the United States. James J. Hill used to- say that if reasonable and adeauate rates could be secured the ran
 roads would be able easily to meet the enormous demand for transportation
 which American business and industriat fife would make and would also be able to stimulate foreign commerce.
 That was the view taken by E. H. liar Iriman. He said three or four years be- fore his death that if he could be assured that the government would permit req
 sonable rates to be adopted he could put the Erie railroads in such condition thai
 within a short time it would be paying ' dividends upon it's common stock To do that would have been a wonderful lachievement The common stock of the
 Erie railroad is acceptable if mixed in
 with other securities as the hasis for a call loan security, The late Frederick D. lTappan used to say that he always liked to have a little Erie common stock mixed iir with other securities because it could he sold instantly. as speedily as a gov lernment bond, although 1t was non
 dividend paying stock. Had MT Harri- man through government assistance in the matter of rates been able to make
 Erie common stock a dividend payer, the Influence upon business and upon othe; railroads would have been almost incon- lceivably great. z .s..ggs " 9 te9 iWHAT ARE REASON AHl ITS
 EenatoF Root is certain t6lat II