"'This company has been for some time, and is now desirous of building about four hundred miles of extensions of its railroad in sections of the Northwest that are not at present adequately served by transportation facilities; but, because of its inability to dispose of its securities, at a price that, as a business proposition, would warrant their sale, has been unable to make these much needed extensions. "'Until within the past few years this company was able to dispose of its four per cent bonds at approximately par, and in common with other first class securities, these were considered by the purchasers to be a good investment; but in the last few years we have found it practically impossible to dispose of these bonds at a price that would meet the demands of an economical and proper administration of its financial affairs. "'In 1915 in order to secure funds required for needed improvements and betterments, we were compelled to issue bonds drawing five per cent, and for improvements on our Chicago division we were unable to find purchasers for its bonds, and were compelled to issue notes due in three years, bearing interest at five per cent for that purpose.' "Another letter which has been received is from the president of one of the greatest railroad systems, not only of the eastern part of the United States, but of the world, a system which has been managed with notable conservatism and ability, and which has regularly paid substantial dividends. The president of this railroad says: "'Replying to your letter regarding cases where railroads had found it impracticable to do any new construction work because of their inability to get the public to invest in their securities, much depends upon how this question is put. Railroads cannot issue bonds and stock and throw them on the market to discover whether the public will take them or not. I know of no instance where any company with sound credit and good earnings had any difficulty in selling its securities to the public, provided the rate was satisfactory, compared with others, but there have been very many cases where the railroads have discovered, through consultation with investors and bankers, that there was no market for railroad securities, except on terms too onerous for the railroads to accept, and, further, because many railroads, including our own, suffered such a reduction in earnings that they were not warranted in offering securities to the public or proceeding with large items of construction work or large orders for equipment.