Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-23
RAILROAD CONTROL
is CLOSELY HELD
SpIaWn Report Shows Major
ity Ownership Conferred
in Is Groups.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, February 23-Dr. Wal
Ter NJ. w. Splawn, under the direction
of the House of Representatives Com
mittee on Interstate Commerce, has
Just completed a thorough study of
American railroad organizations, which
Is probably the most complete ever
made and cost the Government less
than $4,000.
In the report DR.. Splawn brings out
the fact that of the 100 class l rail-
roads, representing a gross capital Of
$23, 800 000 600. their ownership is dis
tributed through $4,000 stockholders,
and the banks and brokerage houses
own but 5 per cent of the total voting
stock.
Dr. Splawn, 48, Texas born, grad
uated from Baylor University and took
postgraduate work at both Yale and
Chicago. Then he read law and was
admitted to the bar, practicing for sew
eral years at Fort Worth.
In 1916 he went back to teaching,
and began to specialize in railroad eco
Monies, finally becoming a professor
at the University of Texas. During
this time he was made a member of
the Texas Railroad Commission. and
in 1927 became chairman of the Board
of Arbitration of western railroads and
groups of employees.
DR.. Splawn is the author of two
books on Railroads.&c. Consolidation Of
Railroads" and the Government Own
ership and Operation of Railroads"
Every business man interested in the
outcome of the railroad consolidation
movement should take time to read
this report.
Fifteen Major Groups.
One of the most interesting facts
brought out in the House committees
report is that IS major groups In the
United States control 100000 miles, or
nearly IS per cent, of the railway mile
age of the country.
The committee suggests putting the
holding companies under the control of
the Interstate Commerce Commission,
Just as railroads are today. Otherwise
control of railroads by the I. c. c. is
impossible.
Eight families are mentioned as the
largest holders of railroad securities
George F. Baker and his son, George
r. Baker, jr.; the Vanderbilt family,
Arthur Curtis James, Edward S. Hart
ness. the Hartman family, the Fahne-
stock family, the Whitney family and
the Widener family.
The committee also brings out the
fact that 219 railroad directors now hold
2,298 positions and this does not in
clude directorships In subsidiary COM
panies, of which they average about 10
each.
Russian Dumping.
Jean Parmentier. French financier,
member of the French delegation for
framing the Dawes and Young repara-
finn MANS has returned from
and says that IF the Russian dumping
system is not checked it may cause an
economic disturbance without parallel
In the history of the world"
Mr.. Parmentier thinks the Soviet plan
OF importing vast amounts of machinery
and skilled labor, paid for by credit Sc
cured from the forced sale of Russian
goods abroad. Is likely to succeed If
so. Russian iron production is likely to
reach 1900 900 tons annually. OF that
amount between 5000 900 and 10. 600. 900
tons will be eXported-double the
amount that Russia exported before the
great war
To meet the Russian Cumming
menace" Mr.. Parmentier suggests the
creation of a government Office in each
nation, ito centralize all direct and in
direct purchases from Russia. and resell
them at the market price, so as not to
break down the price level in the vari-
Gus countries"
Russia then will be dumping her
surplus into the laps of the various
governments. These governments. in
turn, would make vast profits selling
them to their people, and at the same
TIME prevent business and commercial
cnaos within the various nations.
NJ. Parmentier thinks the world must
take such action as is necessary before
1t is too late.
The League of Nations and the In
ternational Chamber of Commerce are
botn studying this Russian dumping"
problem.
Business Recovery.
Victor M. Cutter Of Boston, 40 nresi-
dent Of the United Fruit Co saws that
the return to prosperity cannot be ac-
complished by splendid isolation:
neither can the Worldwide denresxior
be cured by means of local spending
tarin walls or by artificial stinulants,"
Julius H. Barnes, chairman of the
national business survey conference
makes an even more important state
ment. Here it Is:
The only safe equalizer of supply
and demand-the only prevention
against cumulative destructive SURPRISES
lis the control through the influence
OF Tree play in price. representing the
Informed and infiexible judgments Of
the world, made effective through
trade"
What free trader could state his
business philosophy more comprehen-
sively, in paragraph?
More and more American business
leaders are recognizing that to be sue
ceSsful international trade must grow
both ways, and that the less cbstruc-
ton to international trade in the proc
ess the better for all concerned.
Commodity prices are still on the
decline, according TO the report Of the
Department of Labor for January The
report says that $50 commodities stood
at II during the first month of 1881,
compared with 1874 in December, 1880,
and 93.4 in January, 1880.
Copyright, 1881. by North American News
paper Alliance