New-York tribune., 1922-10-10
IN en- = s4s...s.ss~sas
Railroads Appear
llntiercapitalized,
Davis Tells /. B. A.
Draws Conclusions From
Commerce Commissions
Valuations; Investment
Bankers Open Convention C

u
Del MONTE, Calf, Oct e.-Results
% lar attained in the work Of Federal
vainatlon of the railroads indicates
s'ss 'natsad of being oyercapita.ized,
rs frequently charged, the carriers are
ui,oercapltalized. according to a report
submitted at the opening session here
to-day of the Investment Bankers
association of Americas annual con
vention by its committee on railroad
securities.
Inc committee, which is headed by
plerpont Y. Davis. vice president of the
National City Company of New York,
aeciares that this work shows the
!e,h Value OF the roads to be so much.
IN excess of their capital obligations
mat the result of Federal valuation
must be salutary effect on their
tTeait. Completion of the preparation
Of final values is urged as expedi-
Neusly as possible, on the ground that
me f1gures presented viii furnish a
OASIS, not merely for establishing the
credit of the carriers on better foot-
ing, but for rate-making, taxation and
other purposes.
Beebe Opens Convention
Investment bankers from all sec
tlons of the country were on hand
when Howard F. Beebe, OF Harris,
Forbes & CO., president of the associa-
ton, opened the convention. Mr.
Beebe spoke of the lowering of the
cost of municipal and state financing
as one of the satisfactory changes of
the year In enabling the carrying on
of necessary activities throughout the
rountry. With respect to borrowing
by the Federal government he raised
a question as to whether, in view of
the slow rate of reduction of the war
debt, it would not be wise to establish
additional sinking fund provisions.
"Our governments loans to foreign
countries are in the frozen credit
class" said Mr.. Beebe, "and it is
evident that it is going to be difficult
for many of these debtor nations to
even pay their interest on these loans.
1t has, therefore, been necessary for
our own government to employ sub
stantial portion of its receipts in the
payment of interest on the debt Gre
ated to make possible these loans. If
this condition is to exist over period
of years it is time. to consider
whether additional sinking fund pro-
that part of the government debt
which it was anticipated would be
liquidated from receipts from the
debtor countries"
Municipal Statistics
The report of the Municipal Securi-
ties Committee, presented by l.. L.
Wakefield, of WellsDickey Co, Min
neapolis, called attention to the need
for greater uniformity in presenting
financial statistics of municipalities
to the public and for ascertaining
that sinking fund obligations OF
municipal borrowers had been met.
There can be no considerable deal
ings in securities based upon overseas
transportation until governmental
policy is finally announced, profitable
operation of American shipping COM
panies assured, and some stability OF
conditions abroad achieved, in the
opinion of the marine securities COM
niittee headed by e, G. Tillotson, of
Iilloton G. Wolcott Co., Cleveland.
Reports by the education committee,
the treasurer, the secretary and the
membership committee were also pre-
sented and accepted.