Evening star., 1939-05-17

directed existing government
agencies to do much of prelim-
mary work. In ttoo installments,
sl,100.000 has been made auau-
able for study.
BY JOHN C. HENRY.
For the nearly two decades since
the Government returned their
operation to private hands, Ameri-
can railroads have sustained them
selves largely from their own rev.
enues with only nominal support
from the capital market, it was de-
veloped before the Monopoly Com
mittee today.
Presenting voluminous charts and
statistics dealing with funds avail
able and those expended for capital
purposes by the class roads from
1871 to 1887, inclusive, John w. Bar
rlger, chief examiner of the Rail-
road Division of the reconstruction
FINANCE Corp, painted for the COM
mlttee picture of one of the Ma
tlons Key industries forced to feed
on ltself while millions of dollars of
American capital stand idle.
This may or may not be a healthy
condition. Mr.. Barriger told the
committee. In conversation with
reporters later, he declared it to
be his own belief that the industry
would have been in much better
condition if it had had access to
greater supplies of new capital.
S1o,313,000,000 Available.
In developing this financial pic
ture Mr.. Barriger told the commit
tee the Glass l roads had available
Tor capital purposes during the pc
ROD mentioned a total of slO.313.-
0OO,O 900 from all sources.
or this sum, he said. S.. .405, 900 900
or 7l.8 per cent, came from its own
revenue; sl,937 100000, or 1879 per
cent, came from sale of stock and OF
certificates of funded debt, and
s969OOO, 900, or "a per cent. came
through reduction of working
capital.
on the expenditure side, s9.86O,-
10000, or 1922 per cent. was de-
voted to maintenance of roads and
equipment; s7l3000. 1000. or 6.75 per
cent, to increasing working capital
and s3,7o0,O00 to other investments
AS one comparison for the s7.4O5
100000 Of internal revenue which
the carriers have ploughed back
INTO their own properties, Mr.. Bar
rlger said the estimated total value
OF the roads in question is about
$4,000, 900 900.
Two other key industries-chem.
lcals and steel-were to be scru-
tinized by the committee today as
1t continues its search for means
OF mobilizing the Nations idle men
money and machines. The grour
was challenged yesterday by Presi-
dent Roosevelt to find an answer tc
the riddle of economic stagnatior
which grips country replete with
resources.
Slated for appearance later TODAY
are Edgar M. Queeny, president OF
the Monsanto Chemical Co.. one OF
the largest and most progressive in
oustrlal units in the country. and
Edward Stettinius, chairman of the
board of United States Steel Corp
Letter "Shot in Arm"
With the committee currently con-
cerned with the broad problem OF
savings and investment, generally
considered the most important phase
OF its whole inquiry, it received a
shot in the arm" yesterday after
noon in the form of the letter from
the President.
Remarking at the fact that the
yearly savings of the American
people are not finding their way
back into productive enterprise in
sufficient volume to keep our econ
omy in high speed, Mr.. Roosevelt
asked the committee, not only to
make full analysis of the problem
but to produce suggestions by which
cure may be attempted.
I'VE have an immense amount of
wealth which needs to be created in
this country" Mr.. Roosevelt wrote
Much of it can be created through
private enterprise. Some of it can
properly be created through quasi
public agencies.
Get Wealth Moving.
The problem is to use our added
savings and increased credit to get
this wealth moving, that is, to get
it now in productive enterprise; and
at the same time, to make savings
available for use in all categories of
private enterprise. as we'll as for
the great and recognized enterprises
which can command capital, but
have less actual need of capital than
many smaller but equally deserving
enterprises.
There is also the problem of
determing how credit can best be
made available for instrumentalities
of local government and for those
quasi-public enterprises which must
do the work which cannot be done
by private enterprise > ="