New-York tribune., 1919-11-06
Roads Must Attract
New Capital, Lee Says
Tells Advertising Men New
Lines Canuoi BE Built Unless
Carriers Receive Adequate
Compensation
Compensation

Speaking as the representative of
tho Association Of Railway executives
Ivy /. Lee, assistant to the president
of the Fennsy lvauia Railroad yestcr-
day told members Of the New York
Advertising Club that immediate and
constructive action on the country S
railroad problem was imperative.
The President has announced his
intention Of retarr'ng the roads to
their private owners January next,
said MIR Lee. even # legislation IS
passed extending temporarily the
Federal guarantee of earnings which
prevailed during wartime, tho rail
roads VII sill face tho unacceptable
question around which Liberation
of the American railroad problem must
rotate. The question IS:
"IIow Is the new money to be OBJ
taincd With which to develop the OK
listing railloaGs and to build new rail
roads
admittedly. unless that question can
be answered factorily. the Ameri-
can railroad system cannot continue to
bc developed with private capital.
The American peoNlc are convinced
that government ownership and op-
Grafton of railroads is not IN the IN
forests Of the American public. That
conclusion however. drives one to the
ttitti norm ' me lt4t ii4li.'s, ana thNt
IS tho necessity Of making private
ownership ard operation a success and
p snurcc of satisfaction and prosperity
10 the public
"Taa' cannot he accomplished unless
tho railroads are permitted 20 attract
the necessary capital. and the rccos-
sary hiEh grade personnel with which
10 dove oD. MAINTAIN and cNndGct not
alone ttc existing railroads but tho
railroads Of tic future.
"Thc railroad rroh'cm Of America
cannot ho cons dorod as, for example.
could thaf of England. aS merely q
oucst-an of how adequately 10 com
rcrsatc. c,istlHg investment. hat is
p question at once ethical and judicial
and would be comparatively easy Of
eolu'i ION.
"Thc real question is. How can We
got the money for future develop
ronto oar rai'road system. as com
pared With the more iatensively devel-
opod countries Of Europe. is stlll IN
It's beginnings. If the nation is to
grow and develop .ntensive'y. i lis re
sources are 10 be made available i'm
the markets Of the world the existing
railroads must hc devolouod TO ri high
deeree Of effectiveness and noW rail
roads must be bulli on q very large
scaie
'If our railroads arc 20 attract the
necessary new money from private .u-
vcStors there is only one way TO obtain
+. and tNat 70 offer Investment to
private investors which can compete IN
the money markets o. Tic world for
The new money which viii be available
for new nvos tmcuf
I'm other words. the railroads viii
have 70 compete for ,ac SAVINGS OF the
world Tha; can ho dose effectively
oniy i the IA lroads are able to earn
enough - pay return to Investors
which VIII mpensa.e them for their
rsk or winch wll pay a reward SIM
ilar 20 thst paid for investments
oquelly safe IN any other part Of the
world.
"l is impossible to say to the in
Nostar Of Vie future iust what Will be
an adequate return upou his money.
fhe investor himself VII determine
Jho adequacy. ard if ne does not con
der the payment offered to HIM as
ad qgafe. te vii. nut his money some
whore else. aud The new railroads can
uo, be- built