Connecticut western news., 1922-09-28
LONG HAUL RAILS ARE
 THE SAFEST TO BUY
Babson Says Strike Settlement
 Is Favorable to General ss. Business
TRUCKS HURTING ROADS
Says Great Highways Will be Built for Exclusive Use of
 Large Trucks

Large Trucks
 Since the settlement of the rail road strike many tips have come from Wall Street relative to the pur- chase of railroad securities. Rela- tive to these recommendations Roger W. Babson today issued the follow ing statement:
 "There is no doubt but that the settlement of the railroad strike is favorable to general business. Owing to the coal situation, such settle ment was absolutely necessary. Moreover, it has been more or less favorable to the railroads. The wage workers have gone back at the rates determined by the Railroad Labor Board and most of those who went out on strike are sorry that they did it. The seniority question was settled on 50-50 basis, neither side claiming a victory. This also isi we'll for all concerned because the railroads are now able to restore seniority rights to the good men who deserve them and to withhold them from those who do not Wall Street is justified in sending out reports that the settlement is favorable to railroad securities.
 "The settlement of the strike on the present basis should also prompt both sides to count ten before an- other strike is precipitated. In other words, the railroad strike was expensive for both the railroads and the wage-workers. The wage-work- CTS today realize that the railroads gre stronger and better able to handle "a labor situation than has been the case for many years, while the railroads have greater respect for the labor unions than they have had heretofore. All of this means that when another difference arises both sides will be anxious to patch up the difficulty before a strike is called instead of being anxious to precipitate strike as seems to have been the case two months ago. l Therefore, barring the European situation which may adversely affect all securities, feel fairly optimistic on railroad securities. say that the European situation may adverse ly affect all securities because people are liable to rush to sell their Euro pean securities and in so doing all securities will be affected, even tho another European war would ulti- mately help our industrials and in- directly our railroads.
 Railroad securities, however, must be bought with great discrimination. The time is past when all railroads are good or bad. The next few years will witness as great changes in the railroad field as the past ten have witnessed in the traction field. Rail- roads have already felt the effects of pleasure automobiles, but they have not really begun yet to feel the effects of auto trucking. The truck ing of goods within radio of 50 or 100 miles has only begun and this radius may readily be extended to cover 200 or 250 miles. Trans-con- tinental systems such as the Union Pacific, Northern Pacific, Great Northern, Southern Pacific, Chicago, Rock Island & Pacific, and Atchison have nothing to fear from the trucks. Tn fact, the trucks may help them. Roads like the New York Central, Baltimore 6 Ohio and the Southern can survive and perhaps profit under this competition. With road such as the Boston & Maine, New Haven, Pennsylvania, Chicago & North Western, Reading and the like, this is not true. These roads are bound to suffer far more from the truck than they now think possible. Ir.a. 5
 "We shall live to see great high ways built by the state exclusively for truck use. Railroads are des- tined ultimately to lose all of their short haul business and hence the roads which are in comparatively small and compact territories are sure to suffer. The only hope for some roads such as the Boston & Maine and New Haven B to sell certain of their rights of way to the state in order that the tracks may be removed and concrete highways laid in their place. Many Roads have parallel lines today under their control. The wise railroad company win develop one of these for itself and will sell the other at a good price to the state for concrete truck highway. Frankly, would rather take my chances with con crete securities than with railroad securities bought indiscriminately. Therefore, in taking any tips from Wall Street to buy railway securi- ties use great discrimination to se- lect those which cannot be adversely affected by a great development in trucking or those whose management is far sighted enough to reduce their mileage to only such as is profitable, selling the rest for trucking high ways"