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Show THE RAILROAD OFFICIALS SBY TREASURY ACTION HAS BUT LITTLE EFFECT CHICAGO, March 27. Secretary Cortelyou's action in rescinding his order or-der against ' the acceptance by the Treasury of railroad bonds as security from banks did not have a marked effect ef-fect on the value of the stocks, according accord-ing to opinions expressed by railroad men and bankers yesterday. The stocks, according to their statements. are sound as earning securities, and are so recognized both at home and abroad, despite any attitude of the treasury. "From my standpoint as an operating operat-ing official, I do not see that the attitude atti-tude of the Treasury will make any fundamental difference," said Daniel Willard, vice-president of the Burlington Burling-ton road. "I do not think that Cortelyou's action ac-tion has had any marked bearing upon the ability of railroads to secure loans, as reported. 'The railroads have not been negotiating for large loans, because be-cause they have not wished to. Under the conditions existing at present the outlook is uncertain, and policies of economy have been generally adopted. Such general action tending to curtail earnings is being contemplated against the railroads that naturally no great undertakings are being entered into." President Samuel Felton of the Chicago Chi-cago & Alton also asserted that railroads rail-roads are not considering the placing of large loans, owing to the unsettled conditions. 'Railroads are not in the market for large loans," he said. "The increase in-crease in wages, the regulating laws, and like matters, have caused a policy of economy." Bankers were inclined to think that Cortelyou's action would have more effect than railroad men would admit. "It is a wise move," said David R. Forgan of the National City bank. "First-class bonds ought to be good enough for the Government, as they are gcod enough for everybody else. I do not know, however, that it makes a material difference. The lack of confidence con-fidence that seems to have sprung up was not warranted. Stocks were too high, but there was no occasion for the bottom dropping out of them." |