Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-01


other sections that the general office
of the association should be moved to
this city, although, as the state banks
and trust companies derive their
powers from the states, they are not
so vitality interested in the matter as
the national banks"
Vanderlip's Impressive Talk.
No speech since the war ended has
ropean conditions than that made by
Frank A. Nanderlip on his return
from Europe. before the bankers of
New York city Monday night of last
week.
He told of conditions actually ex-
listing and pointed out plainly the
obligation and duty of the United
States toward Europe, with 100000
600 people and vast resources and
productive power, unable at the pres
ent time to pay in gold or commodi
ties for the supplies. etc, the United
States must furnish.
Senator Owen OF Oklahoma. who
has but recently returned from Eu-
rope, backs up Mr.. Vanderlip's views
very strongly.
He said: "Vanderlip is right. We
have billions of dollars in surplus
goods which we desire to market,
and our enormous wheat and cotton
crops. with a vast surplus production
of copper, steel. oil. machinery and
manufactured goods and of resources
of raw material, such as lumber and
coal.
IF we do not sell our surplus goods
we will have a reaction upon the
value of these goods in America. We
VIII have stagnation, we will have
riots growing out of unemployment
and unrest within our own body pol
itic."
Senator Owen gave suggestions as
to the method of extending these
credits as follows:
There should be established imme-
diately very powerful foreign
finance corporation with ample cap
ital with which to ext end these cred
its on long time. on the basis of Eu-
ropean securities. and such a corpo-
alton should have authority to sell
its bonds. secured by foreign bonds,
foreign securities which are sound.
as the bonds of foreign governments.
foreign cities like those of Paris.
of commercial syndicates engaged in
certain productive enterprises backed
by government securities whenever
available and by the securities of
well known concerns engaged in pro-
ductive enterprises"
Doesn't Fill the Bill.
The action of the Public Utilities
Commission in the matter of aiding
revenue to the two traction COM
panies fails utterly to solve the prob
lem for the Washington Railway and
Electric Company. while it makes a
handsome and unsought gift to the
Capital Traction Company.
That the two-cent transfer rule will
length of ime does not seem prob
able. 1t will never be popular with
the public, as too much in the nature
OF placing the entire tax on those who
are compelled to use transfer privi-
leges with no additional tax on any one
else. 1t is also in the nature of less
than half portion to the Washing
ton Railway and Electric Company.
II the statements of the officials of that
road are accepted. and it passes up the
traveller pay for service rendered,
the meter way of buying service.
There is no telling Just how the
problem will eventually be solved
An order to heavily increase ex-
1ncrease-an uncertain quantity for
two-cent transfers-will make many
passengers walk the short distance
necessary to avoid the extra payment.
as well as to await regular cars to
two line. as in the event Of using a
Georgetown car on the Washington
Railway and Electric to Dupont Circle
and. transfer on Mount Pleasant
1t has cost the Washington Rail-
way and Electric Company S75O,000
to pay its annual dividends since the
common stock dividend was cut down
the common distribution lessons the
demand for revenue by that much an
nually. although it is a bitter dose
to owners of the stock to receive
nothing therefrom.
The loss does not fall as largely
on the general public as it would il
it should be necessary to pass the
preferred dividend, for this stock is
largely held by local investors, men
and women of Washington"
The preferred dividend is cumulative
that is. it would eventually have to be
paid II the earnings warranted. The
common dividend is not.
Local Securities.
Late in the day some of the local Sc
curities have shown trend toward
higher prices. as il some one had dis
covered that three months bull market
in New York might have been on such
a foundation as to warrant little
strength elsewhere in the security world.
The outlook for the majority of the Sc
curities is encouraging and there's are
many bank stocks in the list that on
their book value should sell higher
Bonds may do better.
Bache on the r. r. Problem.
THE request of the railroad admin
istration for $1.200,000,00 instead Of
$3.50 100000 asked of the old Con-
and the whole railroad proposition.
t1vr te wi Il I,
a new condition had been forced upon
transportation under government
CONTROL" says ]. S. Bache.
The facts are that we are now
reaping the results which must in
evitably have come from the policy
of starvation of the railroads, which
began under the Taft administration
rates. This policy had been carried
on by the Interstate Commerce Com
mission for many years, up to the
very moment when the government
took over the roads and saved them
from general bankruptcy. The mil
lions now required to keep the roads
up to a bare normal are a part of
the millions of which the roads were
deprived in yearly earnings, and to
which they were legitimately enti-
tied during the ten or more years
past.
THE amounts being paid out now.
and which will continue to be paid
out. are. in a way, related to the
sums which have been lost by the
railroads in carrying goods below
cost for years. and to that extent the
public. but especially the shippers,
have benefited all the time.
when the roads are turned back
to their owners "a government guar
antee of earnings must continue for
a considera BILE period, as in no other
way, no matter how economically the
operations are conducted, can the
rate-regulating body be forced to
meet the. situation. and in no other
way can railroad credit be restored.