Evening star., 1923-06-21
Dc. BANKERS1|PEN
..IF|FTH CONVENTION
Much Constructive Work Is
Expected at Annual Gather
=. ...-0
!. ! ing at Hot Springs. !:
Special Dispatch to The Star.

HOT SPRINGS. va. June 2l.-What
promised to be the most constructive
convention in the annals of Washing
toms bankdom was formally ushereo
in here this morning to the strains OF
THE Star Spangled Banner" when
Joshua Evans, jr., retiring president
Of the District of Columbia Bankers
Association. assembled his colleagues
for the first business session of the
fifth annual assembly.
In a comprehensive report of the
associations activities during the
year which ends with the current con-
vention Mr.. Evans paid particularly
high tributes to the body and its ac-
complishments during the period
The oneness OF spirit which. in the
opinion of the speaker, yearly is be-
coming more apparent was clted as
only one instance of the many good
results being attained.
Tribute to Crissinger.
Mr.. Evans also lauded the work Of
Ex-Controller Of the Currency, ID. X.
CrisSinger, now governor OF tne leu-
eral reserve system, declaring he had
done much in unifying the District s
banking fraternity. Chairmen or the
various committees appointed by Air.
Evans to carr on S-jeCiat WORK our
ing the year. together with their as
sociateS, also the Better Business Bu-
reau Merchants and Manufacturers
Credit Association and the Washing
ton Board of Trade were likewise
congratulated on their accomplish
ments and corporation.
Government operation and inter-
ference, which has resulted in an in
crease of 81 per cent since the war.
while wages have advanced more than
100 per cent, are responsible Tor the
badly muddled railroad situation of
today, in the opinion of John J. Corn
well, former Governor OF West VIZ
ginia. and now general counsel Of
Vhe Baltimore and Ohio railroad.
However. Mr.. Cornwell held that.
barring hostile and ruinous ieglsla-
ton by the next Congress. the out
look for the railroads is better in
every way than it has been for long
time.
BInmeS Failure to Grow.
This depiorahle condition has. been
brought about, said Mr.. Cornwelf, be-
cause the country mas outgrown its
transportation systems. There has
been practically no railroad expansion
or development for the last dozen
years. except the purchase of new
equipment. and there was period
when more engines and cars were
scrapped than were put into service.
more railroad mileage was torn up
than laid down." he said
In a review of facts leading up to
the present-day situation, Mr.. Corn
we'll continued: With the view OF
putting the companies in financial
position where they could obtain
necessary funds for the development
demanded. the railroad executives
went before the Interstate Commerce
Commission in 1910 and requested an
H.
mission heard the application, con-
sidered it and finally rejected it in
toto, with the result that no great
and general railroad development was
begun.
Given Slight Increase.
Three years later the railroad ex-
ecutives went back to the commits
again, offered the same arguments
and asked for a meager per cent
Increase in rates Again the commits
sion took the matter under consid-
GRAFTON, and after the most exhaust
or any other subject, finally granted
the increase on some commodities.
but denied it on coal, iron, steel, lurn-
Der and ore, the heavy products which
yielded the greater part Of the reve
nue. of the carriers.
The result was that general rail-
road development and financing was
again delayed. and the carriers had
to go along on hand-to-mouth pol
icy OF financing, issuing short-time
notes and making bank loans. Then
came the world war and the taking
over of the roads by the federal gov
ernment and their operation by it for
period of twenty-siX months.
Of course there was no railroad
development or expansion during the
period Of government operation. ex-
cent
purposes. There had been some in
creases in rates, but wage increases
had far outstripped them and a de-
mand for another large war increase
which the government had refused to
decide was pending and was finally
granted. 1t is true that the Inter
state Commerce Commission made a
further increase in rates, supposedly
enough to take care Of the wage ad-
vance. but 1t fell far short of doing 1t
because about that time business
slumped and there was not the VOL
ume of traffic anticipated. with the
result that the carriers narrowly es-
capped bankruptcy in 1921"
DIR. Freeman Speaks.
In summing up his remarks, Mr.
Cornwell voiced his opinion that the
present situation as respects the rail-
roads Is not of the worst It is get
ting better, he believes, and if al
"So ~ 81 dAoiS LOT a
little while they will be, in q DO
sition to handle all OF the business of
the country all of the time in a sat
fsfactory manner
The bishop elect of WASHINGTON.
DR.. James e. Freeman, in a brief ad-
dress on Broader Outlook. warned
the local delegation against a narrow
vision which could not meet present
day conditions, inasmucb as the
world changes almost daily, in his
n cot teatr1
changes on the part of the worlds
business houses
DR.. Freeman emphaticaIly aligned
himself with the advocates of an in
ternational court, declaring its oppo-
nents lacked wisdom. Great benefits
would accrue from such an alliance,
he predicted.
Chauncey Depew was an Interested