Salt Lake Herald-Republican | 1920-05-09 | Page 20 | Bankers Would Cut Demands of Roads

BANKERS WOULD CUT DEMANDS OF ROADS Washington 1 May a S. S S. Bankers Bankers called d dI before the Senate Interstate commerce committee today did not nut h. h with I the testimony of ot railroad executives s yesterday that the government should loan additional to tn the roads I for new rolling stock The They said sald however however how how- ever cyer that no great par part of oC the which the railroad presidents estimated to bo be necessary necessary- r for new equipment could be raised from Crom the public Jerome G G. G Hanauer of Kuhn L Loch ocl Co New Nev York chairman of the committee com com- of Investment bankers banken suggested suggested sug sug- that Con Congress extend the period period pe pe- of or the loan Joan already I provided for tor the tho roads from rom 1 five to fifteen that be hc used years ears somo some mono money I in tine tilt betterment of oC terminals and that the roads ho bo so 80 managed as to II expedite the the movement of oC cars r and reduce to tu a a. minimum requirements for n new w equipment I Chairman Cummins asked the opinion of oC the witness on a a. plan of giving n R I t o guarantee for Cor the payment of oC Interest and principal on sums slims borrowed her bor I rowed by the railroads for foi new equip ment The securities issues v then I sell entirely on the credit of ot the government gov gov- government gOI l I Mr lr Hanauer replied and anal j carrying a much higher rate of Interest Inter Inter- I PIt est would badly affect the value of I Liberty Libert bonds and nil other outstanding aL obligations ons of or the United States Slates r y yIn I In addition this thin would make It lm- lm I possible for or railroads to borrow money I ICor I for Cor other needs o J I their th l OW own I I cre credit iC Mr Mi Hu nn told the conn tt c t that ha t an any any extended purchases purchases' C of oC equipment I of railroads at the presort present hl ll h prices financed I by 13 the issue of securities IH at the nie present nt high rates would naturally Impose a serious burden on the roads anI and therefore on the communities tics they i 1 serve I I i