Evening star., 1933-01-28
Special Dispatch to The Star.
Stock and

NEW YORK, January 28.-The debts
Of the American railroads constitute as
pressing subject for the consideration
Of the incoming administration at
Washington as those Of foreign govern
ments. For this reason conferences be-
ing held this week between President
elect Roosevelt and influential members
of his party, who have been and are now
identified with transportation affairs,
are receiving close attention In Wall
Street.
Bernard M. Baruch, who Is the active
head Of q committee appointed by life
insurance companies and savings banks
to investigate and report on the prob
lens Of the carriers, Is one of Mr.. Roose-
velt's advisers Walker D. Hines, who
was chairman of the Executive Com
mittee of the Atchison, Topeka & Santa
Fe and later director general OF rail-
roads, Is another man to whom Mr..
Roosevelt has turned for suggestions IN
the present emergency.
Other Conferees.
Other railroad men who have con-
ferred with the President-elect> since
last Summer are Daniel Willard, presi-
dent of the Baltimore & Ohio, who has
been the liaison between the Hoover ad-
ministration and the railroads for sew
eral years; Carl r. Gray, president OF
the Union Pacific, and Fred E. William
son. president Of the New York Central.
During the presidential campaign Mr..
Roosevelt made two speeches directed
at the railroad problem. The f1rst was
In Salt Lake City on September II and
the second at st. Louis on October ~.
Some portions of these addresses are
worth repeating, as they indicate the
philosophy of the President-elect con-
cerning the railroad question and his
method of dealing with 1t. 1t IS fair to
assume that the point Of view MI.
Roosevelt held a few months ago Is the
one to which he IS still committed.
In st. Louis Mr.. Roosevelt said: II
elected, I shall continue the policy OF
trying to prevent receiverships. do
gap, When mere loans cannot
clean up the situation, the necessary
readjustments ought to be provided as
a part of the plan of lending. Let
me make 1t clear that the extension OF
Government credit will be largely
wasted unless with it there are adopted
the constructive measures required to
clean house. In individual railroads
these turn on the financial conditions
peculiar to each case. In certain situa-
tiors, where fixed charges impose an
unsound overstrain, they must be re-
duced."
The emphasis placed on dealing with
carriers with an overloaded debt struc-
ture was repeated in the st. Louis
speech when he said that advancing
doles to systems was not meeting their
problems-"It is sticking financial
mustard plasters on the railroads"
Possibly the most significant portion
Of either commitment was that made
by Mr.. Roosevelt in Salt Lake City in
the first of six measures he advocated
to assist the carriers out Of their diff
culties This was to the effect that the
Government should announce its in
tention to stand back Of the railroads
for Q specified period; its help being
definitely conditioned upon acceptance
by the railroads Of such requirement as
may in individual cases be found neces-
sary to readtust top-heavy financial
structures through appropriate scaling
down Of fixed charges" This purpose
was reafnrmed in the st. Louis state
ment that, Where adjustments are to
be made, let US find out what they are.
Let us arrange for their handling In q
swift and orderly method Let US make
definite commitment that once the