Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-04-02
RAILROAD SHARES
TAKE BACK SEAT
Promised Activity, on Return Of
Properties to Owners, Has
Not Materialized

"One hears very little about the rail
roads these days said downtown
banker. "since they have returned to
private operation and control
He said he understood there was
wide difference OF opinion among eI-
pert valuers of railroad lands on the
value Of the recent decision OF the Su.
preme Court. some saying that IL was
an important and far reaching decision,
others saying that everything depends
on the view Of the Interstate Commerce
Commission, which. they claim, IL only
compelled to receive evidence as TO the
cost of acquisition Of land in addition
to its normal value. and, II their future
decisions are to be judged by their
past, they treated such evidence az
practically worthless: in fact, it was
said they considered it imaginary to a
large extent.
This point is very important. he said.
as the determination Of rates hinges
largely on these valuations.
As to railroad securities. they were
expected to assume q new lease of life
and return to their former activity
when the roads were returned. but ex-
cept for few days activity they seem
OF to have sunk again into "innocuous
desuetude."
According to a well-known broker,
however, there is a good deal OF quiet
activity going on for some time past.
Large blocks, he said, have been dis
posed Of without attracting any atten-
ton and II is believed. he said, that
a good deal Of this selling Is q part
of the collateral sent here by Great
Britain and France to secure the
loans made during the war. He said
he was informed that Great Britain
was taking this means Of adding to her
gold shipments in order to take up the
bonds of the Anglo French loan in
October next.
This broker said till this opera ton
is completed he did not look for any
marked advance in the prices OF rail-
road securities.
There are many unfinished problems
in connection with the return of the
railroads. remarked an investment
banker, and these are to be taken up
and discussed at meeting of the As
sociation of Railroad Executives in Chi
cago on April q.
Among the things to be discussed, he
said, will be rates and how much the
roads can spend for equipment. The
VI WuktS VIII dlNb Dt
cred. Special commissions have dis
cusscd these matters in the past, he
said. and their recomme n da tions. it Is
said. will be brought before the as
sociatiou. when it is expected they will
be acted upon.
The local representative OF a New
York house confirmed the heavy selling
Of railroad securities for foreign ac-
count and said il was unquestionably
for the purpose Of augmcnting the ship
ments of gold which have arrived re
Gently from Great Britain to retire the
Anglo French loan.
Within the last few days. he said. it
is known that anywhere from 10000
10 $4,000 shares of Southern Pacific
have been sold for this purpose.
When railroad matters were under
discussion in brokers' Office. some
one asked about what proportion Of the
tCtal valuation of railroad properties
belonged to the lands affected By the
Supreme Court decision.
A customer. who is something of an
expert on railroad statistics. said about
his figures on a valuation made by the
state Of New Jersey some years ago.
This estimate was not considered high
enough, as the railroad lands OF many
of the eastern states were located in or
adjacent to large cities. which obtains
only to a limited extent in New Jersey.
There was some interest shown in the
passage by the House in Washington.
on Wednesday last. of the McLane
bill. which is intended to amend the
federal reserve act so that Federal Re
serve Banks may limit the rediscounting
privilege of each of the member banks.
Tho bill. it is said. is favored by the
Federal Reserve Board. Mention of this
change, was made in this column some
time since.
In effect. il is intended to give Fed
eral Reserve Banks the same control in
the matter of regulating the volume OF
rediscounts Of member banks. as the
member banks exercise, or are supposed
TO exercise, in the case Of their own
customers.
In an interview given By Governor
Harding, of the Federal Reserve Board. .
when in New York yesterday. he said
the bill would not give the Federal Re
serve Board any more power. out II
would give the Federal Reserve Banks .
more power as 10 the proper amount OF
rediScounts for each individuai mem
Der bank