West Virginia Democrat. [volume] (Charles Town, W. Va.) 1885-1890, 1888-04-06
REPORT ON STATE DEVELOP
MENT.
BY the Tax Commission.
Continued from last ISSUE


Continued from last issue.)
PUBLICITY WILL ATTRACT CAPITAL.
During the last two or three years
the writer has had exceptional OPP
portunities for ascertaining the
views of English and German CAPT
talists touching investment in Amer
lean railway securities and every one
without exception with whom he has
copversed, expressed the opinion
that what may be called) ''honest
capital" will not risk this character
of investment unless there is some
legislation which will guarantee
such full and complete exposure Of
every detail concerning the manage
ment of railroad company as may
be necessary to enable a distant hold
er of it's securities to understand how
much money has been collected and
exactly how such money has been
expended; in other words, it is the
unanimous judgment of those with
whom he has conversed, that If West
Virginia will inaugurate system
that will compel the managers of a
railroad to conductits business open
ly and publish honest reports about
it's business, then company organ
lied under such legislation will read
lily obtain, at reasonable rates of in
terest, all the capital that is re-
quired.
THE RESOURCES OF OUR STATE-A BA-
SIS OF CREDIT.
1t must be remembered that u
railroad is not built on the person
al credit of individuals. A railroad
is undertaken because and only be-
cause the territory which feeds tits
able to furnish enough business to
pay operating expenses and interest
on the capital required to construct
/ it. The resources of our State are
sufficient to guarantee large returns
to those who build the railroads
which are needed and the question is,
whether we will have intelligence
enough to utilize and reap the har-
vest now presented by the peculiar
advantages of our situation. EXper-
fence has shown that in order to pro-
cure capital for new roads two things
are necessary. (First.) The re-
sources along the proposed highway
must be sufficient to furnish business
enough to pay expenses and also in
terest on the cost of the improve
ment. (Second.) There must be
some guarantee that the earnings OF
the corporation will be honestly di-
vided, viz: there must be some guar
antee that the general stockholders
will not be swindled by secret in
side management. Thoughtless per-
sons seem to act on an idea that rail
road securities are valuable because
the company owns the iron rails and
train of cars; this is delusion;
such securities are valuable only be-
cause the territory furnishes traffic;
the securities of a railroad located in
desert would be vaIueless. This
is a State of vast natural wealth,
which has recently become known to
the world; there are many persons
seeking to appropriate this wealth
for mere trifie.
During twenty years past our de-
velopment has been left entirely to
the haphazard of individual enter
prise. The result Is the adoption
of methods which tend to non-resi
dents ownership and to the ABSORB
ton of vast quantities of property
in few hands. The coal, timber
and iron within our limits offer
basis Of credit, which basis of
credit, if intelligently utilized, will
procure on reasonable terms all the
capital that is required. Our
observation and inquiry warrant, as
we think, the assertion that proper
exertion has never been made to
utilize this basis of credit. We
constantly witness strangers, noto-
riously without personal credit, &C
quire our lands for mere trifie, and
then, on the security of these very
lands, readily obtain capital to de-
velop them. 1t is reasonable to
suppose that if this matter be sufli'
GENTLY studied suggestions will be
made as to how our own people may
realize the wealth now being reaped
by these strangers. The problem
seems difficult, but an attempt
ought to be made to solve it. We
are confident that this problem is
not beyond the reach of solution.
1t is, psrhaps, somewhat unexplor-
ed field of inquiry, but we have all
observed that when investigation
and reflection are given TO subject
we soon acquire new views, new
ideas and new suggestions which
did not occur TO US at first and that
seemingly insurmountable obstacles
yield to persistent study. Here is
work of vast Importance to our
State, and surely it is the part of
wisdom to attempt it performance.
If either Maryland, Pennsylvania or
Ohio were in our predlcament this