Omaha daily bee., 1921-04-05
Rail Stockholders
Seek to Clear Up
Railway Troubles
National Body of Security
Holders Only Organiza-
ton Representing The
Public.
BY HOLLAND.


Six million individuals in the
United States arc owners OF sccurl-
tics of all kinds and particularly
those which have been issued by
railroad companies. That figure rs
the estimate OF investment brokers
and statisticians who have been
with care securing reports upon
which they could base their cstl'
mate Of the total number Of indi-
yidual security holders. This IN
cludes of course banks, insurance
companies and corporations which
have invested some part OF their
surplus i'll securities.
Another estimate which is as
sumed to be reasonably correct fixes
the number in each Of the railroads,
of stockholders whose holdings are
less than 100 shares as numbering
in the aggregate much the larger
part of those in the United States
who hold securities. SO also 1t has
been discovered that approximately
one-third of all who arc III posses
sion OF securities of less than l0o
shares arc women.
Many Women.
The Pennsylvania Railroad com.
pany. the New York Central ana
the New York New Haven and
Hartford Railroad company have
large number of women recorded
in their books as owners OF shares
Of these railroads. many OF them
owners Of less than 100 shares
apiece.
These figures make clear the vital N
forest which the public apart from tne
wage earners and he hahaee'nenI1 i,.
the railroad companies, Is now manu- ,,Y
dent until the railway difficulties are
eliminated. But the public is not rcp-
resented by any association WIN one a.
ception. or by any authoritative nouH, &
It stands apart. The railroad "ase
earners are represented by their union
organizations. The management Oh w
railroads is represented by various az"
cia tions But the public which from one
noint of view Is chiefly concerned aoou'
this matter is without any formal req
resentation excepting the one on VIII"
S Davies Warfield or ba,t'in,%re ~ otp;onsl
dent This is known as the Sauoma' ,'
Association of Owners of Railroad SecuI-
tiles. This organization Is already JUST
flying its creation. 1t is taxing ~ ~hGil,e ""a ra
earnest part in the efforts Whl'h are
now underway 10 secure satisfactory al
iustment of the railroad situation
A Strong Appeal.
This action Is illustrated by the appeal
made by the association through us
president. Mr. Warfield, to the f9ur & or
ganizations of railroad employees to JON
with representatives. Of this association
in an attempt to get perfect under.
standing of the situation and when that
is done to discover. " possible. me
method by which the railroads may be
restored TO prosperity which VIII be
of such Importance to that great mass
of the citizens who are dlrectly .,,ia. OF ~
directly the owners of railway securities.
This national association or owners
of railway securities represents anout
sl2, 900, 900. 900 of railroad securities whlch
are in the ownership or the public ne
larger part of these securities are ponns'
IJpon the. income received from invest
mept in these bonds many persons oe
pend for the means by which tneg NEE NEE
their living expenses. II there IS ueiaui.
of income of this kind and such defau,t
has already begun and may be increased;
some distress and in many cases @ @actua.
suffering will follow. 1t is not difticult
to trace the effect of this loss OF IN
come upon general business condltlons.
Therefore it is confidently asserted that
after all IL is not the employees OF 'ns
railroads nor the employers even VINO
are chiefly concerned but 1t is the Amer
ican public.
Mr.. Warfield asserts that the gross IeNu t,
nues OF the railroads of the country haNs
been reduced to q point where there are
not sufficient net earnings TO meet 1lSeo
charges He might have said, as IN
fact he really ntimates, that II TINS con,
dition continues something like universal
bankruptcy awaits the railroads of the
United States.
1t Can Be remedied.
Mr.. Davies has been occupied for NOR,
than a year with a study of the rallroao
situation. He discovered early that tn.
chief factor in this situation so far as the
effect of it is concerned is the American
public. Until this association was organ
lied this public was without unified yoice
or any other than indirect influence. Now
it is in the interest of the public ana
therefore of the country at large that an
attempt will be made to put an end to the
present weakness In the situation, which
is due in part to the lack of coordination
between the organization. which adjust
rates which is the Interstate Commerce
commission and the other organization
which deals with wages, which Is the
United States Labor board.
Presumably the situation will be cleared
in great measure from its present difficult
ties If there be readjustment Of rates.
which will be satisfactory to shippers ana
to those who use the railroads for pas
senger service and IL there also be coin
cidently readjustment of wages. In addi-
ton, Mr., Davies, Senator Cummins and
of the railroads must establish greater
economies and this is believed to be prac-
tieable. Mr.. Davies says that for the first
time in American transportation history
the railroads of the United States as a
whole are not earning the interest on the
aggregate amount of their outstanding
bonds. This is a danger which the railroad
bondholders of the United States will act
ing in concert and coordination, strive to
bring speedily to an end, and Mr.. Davies
believe can bring to an end, because the
mental.