Alma record. (Alma, Mich.) 1878-1928, 1922-10-05
bAbs0N TALKS ON
RAIL SECURITIES
MUST BE PURCHASED WITH A
GREAT DEAL OF DISCRIMI-
NATION, HE SAYS.
Since the settlement of the railroad


strike many tips have come from
Wall Street relative to the purchase
of railroad securities. Relative Ia
these recommendations Roger w
Babson today issued the following
statement:
There is no doubt but that the
settlement was absolutely necessary.
Moreover, il 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 set
tied on a $3.50 basis, neither side
claiming victory. This also is well
for all concerned because the rail
roads are now able to restore senior
ity rights to the good men who de
serve them and to withhold them from
those who do not Wall Street is
justified in sending out report that
the settlement is favorable TO rail
road securities.
1.-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 eX-
pensive for both the railroads and
the wage workers. The wage-work-
ers today realize that the railroads
are stronger and better able to han
die 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 here
tofore. All of this means that when
another difficulty arises both sides
will be anxious to patch up the diff
Guilty before a strike is called instead
of being anxious to precipitate a
strike as seems to have been the case
two months ago. Therefore, barring
the European situation which may
adversely affect all securities | feel
fairly optimistic on railroad securi-
ties. | say that the European stua-
ton may adversely affect all secur-
tiles because people are liable to rush
to sell their European securities and
in so doing all securities will be af-
fected, even though another Eur
opean war would ultimately help
our industrials and indirectly 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 eff
fects of auto trucking. The trucking
of goods within radii Of 80 or 100
miles has only begun and this radius
may readily be extended to cover 200
or $50 miles. Trans-continental
systems such as the Union Pacific,
Northern Pacific, Great Northern,
Southern Pacific, Chicago, Rock Is
land & Pacific, and Atchison have
nothing to fear from the trucks. In
fact, the trucks may help them. Roads
like the New York Central, Baltimore
& Ohio and the Southern can survive
and perhaps profit under this com
petition. With a road such as the
Boston & Maine, New Haven, Penn
sylvania, Chicago G. 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.
Eve shall live to see great high
ways built by the state exclusively
for truck use. Railroads are de-
tined ultimately to lose all of their
short haul business and hence the
roads which are in comparatively
compact territories are sure to suffer.
The only hope for some roads such as
the Boston & Maine and New Haven
is 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 un-
der their control The wise railroad
company will develop one of these
for itself and will sell the other at
good price to the state for con
crete truck highway. Frankly,
would rather take my chances with
concrete securities than with railroad
securities bought Unfortunately.
Therefore, in taking any tips from
Wall Street to buy railway securities
use great discrimination to select
those which cannot be adversely af-
fected by great development in
trucking or those whose management
is farsighted enough to reduce their
mileage to only such as is profitable,
selling the rest for trucking high
ways"
Continued activity in building lines
has brought general business to a
new high level for the year. The in
dex of the Babsonchart now stands at
but go below normal-an improve
ment of 2et since last week.
ELY LEAVES BANK