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Show BROTHERHOODS; EXPOSE PROFITEERING I I' PROPOSED 1L ' LOAN 0PPGSD Bankers Pour Cold Water or Plan to Get Money From Government ROADS NEED COIN, THEY ALL ADMIT High Prices and Interest Rates Make Equipment Pur-chase Pur-chase Big Problem WASHINGTON, May 7. Bankers called before the senate Interstate com-, jH merco committee did not agree with IH the testimony of railroad executives tH yesterday that the government should jH loan $500,000,000 additional to the roads for new rolling stock. The? said, bfiwever, that no great part of tho ?1GO(OUO,000 which the railroad presi-dents presi-dents estimated to be necessary for nefr equipment could be raised from the public. Extension Suggested. Jerome G. Ilanaucr, of Kuhn, Loeb i& Co., New York, chairman of tho IH committee of investment bankers, sug-gested sug-gested that congress extend the period of $100,000,000 loan already provided for the roads from five to fifteen years: that some money be used in tho betterment of terminals and that the roads be so. managed as to expedite ;tJ.tabvemejitof4'cars andTedu6et6 a ufhimum requirements for new" equipment" Chairman Cummins asked the opin-ion opin-ion of the witness on a plan of giving i a government guarantee for tho pay-inent pay-inent of interest and principle on sums borrowed by the railroads for new equipment. Many Difficulties. "The securities issued would then soil entirely on the credit of the gov-eminent," gov-eminent," Mr. Hanauor replied, "and carrying a much higher rate of Interest jH would badly affect the value of Liberty bonds and- all other outstanding obli- fl gations of the United States. ... In addition, this would make it impossible for railroads to borrow money for their other needs on their own credit" Mr. Hanauer told the committee that "any extended purchases of equipment by railroads at the present high prices, financed by the issue of securities at the present high rates, would natural- ly impose a serious burden on tho 'roads, and therefore on the conimuni-j conimuni-j ties they serve." |