per cent less than the railroads did, and I believe that now, for railroad purposes that that margin continues and is perhaps somewhat cnlarged even under these war conditions. Of course that would have to be found out by actual trial.

I also introduced chart Y showing the variation of railroad stocks in comparison with industrials over a period of 25 years ending with 1914. I did not name the industrial stocks used in this comparison and I now desire to put the names in the record. There were the American Cotton Oil Co., the American Sugar Refining Co., the American Telegraph & Cable, the Consolidated Gas Co., of New York, the La Clede Gas Co. of St. Louis, the Pacific Mail & Steamship Co., and the Western Union Telegraph Co.

These are all highest class industrial companies, and combined with them in the other line were the mining companies, and here are their names:

The American Coal Co., the Consolidated Coal Co., the Homestate Mining Co., the Ontario Mining Co., and the Quicksilver Mining Co. And this chart shows railroad stocks doing very much better than these best industrials. I again introduce the chart in connection with this statement.

Also the very best and most reliable mining stocks in the United States.

(The chart referred to by the witness is here printed in full on page 2192.)

In the Fifteen Per Cent Case the carriers were asked to file statements of all their bond issues during the past 10 years and of the actual yield in interest rate upon each issue as they were actually sold. The table shows their answers in so far as they did answer as to all issues of $400,000 or more and as to the years 1907, 1914, 1915, 1916, and 1917. Twenty-eight of them answered.

The arithmetical average of the interest rates is as follows:

1907..

1914.

1915.

1916.

1917.

Arithmetical average.

5.3 per cent. 5.0 per cent.

4. 8 per cent. 4. 6 per cent.

4.7 per cent.

This is the arithmetical average. I just took the number of issues and the per cent in each issue, and divided it by the number. That is not a true average, because you ought to take the amounts allowed, but that is a big job and I have only figured that later on some of the years.

I have also figured the actual average for 1907 and 1916. I took these years because 1907 is the first year in which the answers are given and 1916 is the last complete year. The following is the result:

1907.

1916.

Actual average. 5. 17 per cent.

4. 86 per cent.

This is almost as favorable as the arithmetical average and the interest rate actually declined 0.31 of 1 per cent in 9 years to these 28 roads, ending with 1916.

117900-19-VOL 3-53

From these tables it is significant that the interest rate is less in 1916 and 1917 than in 1914, and a very significant fact is that the Pennsylvania on April 10, 1917, sold $20,000,000 worth of short-time 3 per cent notes at par and on the previous day sold $60,000,000 long-term 4 general mortgage bonds at 4.8 per cent. These facts make a myth and a delusion out of the claim of a breakdown in railway credit.

(The table referred to is herewith printed in full, as follows:)

NEW ISSUES OVER $400,000 1907, 1914, 1915, 1916, 1917.

Issue sold as given under column of year-Figures for par and yield.

Atchison, Topeka & Santa Fe. Rocky Mt. Div. 1st mtge. 4's..

1915. $3, 000, 000@4.0 977, 000@4. O 1916. 5, 545, 000@4.8 1907. 790,000@4. 2 4, 500, 000@4.9 5, 000, 000@6. 7 1914.

2, 000, 000@4. 4 1907.

760, 000@5.0 500, 000@ 5. 0 1914. 4,077, 000@5.0 1916.

1, 000, 000@4.8 450,000@5.0 1907.

771, 000@4.9 1, 000, 000@4.5 1914.

649,000@5. 3 28, 000, 000 a 6. 2 1, 700, 000@4.9 1915. 725,000@5.5 1916.

3, 160, 000@4.5 40, 100, 000@5.7

1917.

2, 500, 000@4.5 3, 780, 000@4.6 6, 000, 000@4. 4 1915.

1, 000, 000@4.4

1914.

1, 500, 000@5. 2

1, 700, 000@4.9

1915. 2, 000, 000@5.1 400,000@4.7 1914.

18, 054, 000@5. 2 1916.

5, 000, 000@4. 4

2, 972, 000@ 4.5

5% 20 yr. conv. g. bonds, '35..................... 14, 451, 000@5. 2