Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-18
two BIG PROBLEMS
AWAITING SOLUTION
Serious Tie-Up Of Transports
tlon Giving Business and
Finance Much Concern

of these two the transportation is the
more serious. A banker said there
seems a way out Of the credit situation,
but the transportation conditions seem
each day to get worse.
It was while discussing this subject
| that n young banker remarked that on
Sunday last he had been talking to a
high official Of the Pennsylvania Rail-
road who told him that matters are in
worse condition than they were during
the railroad strike. The railroad work
| ers, he said, seem determined by their
most recent tactics to force government
ownership Of railroads under the Plumb
or some similar plan.
They know the strategic points in
the transportation systems of the coun-
try. and instead of advocating a general
strike. which they know would be un-
popular, they are harassing the com
panies by a series Of small strikes at
these strategic points, with the result
that they succeed in paralyzing the traf-
fic of the country. Their system allows
n movement Of freight to be released
and started toward it's destination in
good shape. and when everything seems
to be going smoothly-bing there is a
yardmen's strike. or a brakemen's s
strike at one or other Of these strategic
points. and then follows n jam.
Meanwhile the yardmpn or brakemen
Of that particular location are out on
n weeks holiday and the congestion on
hear much, if anything. about these
local strikes, he said, but they are
| exaspcratingly frequent Of late.
|
The local representative of Lee. Zig
ginson & Co., Hewlett A. Sealey, said
that while the recent offerings of equip
men securities are meeting with unprec-
edented success in the face of the
known transportation conditions all
over the country. it was strange that
such should be the case. and he be-
lievcd that the unusually attractive
terms on which they are offered is the
principal reason for this success. He
said we arc apt to conclude that rail.
road matters are now at the lowest ebb
they have ever beer in this country, but
here, he said is an excerpt from Il let
ter written in 1877 by John Hay, sec
retary of state under President Roose-
welt, to a friend in England. This let
ter was written in the summer of 1877
'Since last week the country has
been at the mercy of the mob. and on
the whole the mob has behaved rather
better than the country. The shameful
truth is now clear, that the government
is utterly helpless and powcrlcss in the
face of an unarmcd rebellion of foreign
workingmen. There is nowhere any
firm nucleus of authority-nothing to
fall back on as last resort. Any hour
the mob chooses it can destroy any city
in the country--that is the simple truth.
Fortunately, so far it has not cared tC
destroy any but railroad property. The
freight men here will not let the mer
chants have their goods, which are
spelling at the depot"
In later letter Mr. Hay wrote:
'The prospects of labor and capita
are gloomy enough. The very devil seems
to have entered the lower classes o,
workingmcn and there are plenty o
scoundrcls to encourage them to al
lengths"
1t is possible. said Mr.. Scalcy. that
these disturbing conditions occur il
cycles. that we are passing through on,
now, and after II little we will come out
on the other side with the sun shining
There was a good deal of talk in brok
cr'S Offices yesterday over the proposed
tax of two cents on every $40 Of trans
actions on the Stock Exchange. This
tax is proposed to help out the bonus for
soldiers, which many believe the real
SOlUlpTS no UOI whit.
One broker said that it would be ruin e
Gus and that it threatens the existence
of the securities markets of the country.
On transaction of 100 shares. selling
at.par, the tax, he said, would amount
to 500.
The whole affair. he said is very
absurd, as Congress. in noundcrng
around to find n way of raising the tax
without imposing it on the public, has
succeeded in arriving at a plan which
will accomplish what it is trying to
market will stand the gaff as usual.
This broker called attention to Il
statement by Lloyd George when sim
| liar tax was proposed in connection with
Transactions on the London Stock Ex.
change.
Mr.. George said:
''Such transactions being mainly of a
speculative character and worked upon
narrow margins will clearly not bear II
rate OF duty in any way comparable
with that charged upon actual convey
ancc. Such an impost would in the
first place, from the point of view Of
revenue. defeat it's object by rendering
the greater portion of such transactions
impossible; ; while, in the second placc. II
would, in my opinion. be opposed to the
public interest as calculated to curtaiI
that free circulation of securities which
is a necessary condition of steady prices
and an open market. For although
those transactions are. in the main,
speculative transactions. and do at
times, like all speculative transactions
degenerate into mere gambling, it is n
mistake to suppose that this is their
essential or pcrvading characteristics, "
I'm their proper place, they form
part of the legitimate machinery for
discounting fluctuations in value. noccs.
sary not only to the Stock Exchange but
to every sphere of commercial ACTIVITY
and the imposition of penal tax, do
signed to curtail the mischievous devcI-
opments of the system, could scarceIv
attain its object without inflicting ira,
tricvable damage upon the markctabilitv
of securities as a whole"
In VolTme I. Number |. of "Tbo
Southwark" just TO hand. dated Nav
the president Of the Southwark Notiopai
Bank gives notice that he is the lnte"t
to join the ranks of Philadelnhio' .
| financiers to issue Il monthly month.
piece boosting his city and. incidentally
his bank and bringing both to the nf
tentjOn of present and prospective eli
ents in most effective and interesting
manner.
William w. Foulkrod. Jr.. president
says in his introduction that each month
he will. in future numbers. describe Tho
industries and plants located in South
| Philadelphia under the Cantion or
South Philadelphia, Yesterday and
Today"