Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-07-13

powrrs is general ur mfrcQuent. the III
vcsling public nr'sls projection aS. much
~ the shipping public. But In cach case
the danger Is not, as the railway advo-
Gates insist. ftpm unrestricted cunpcti-
iioa, hui from the huilauon NJ stocks.
the policy Of combination aud the cniire
nhsrnce of restraint upon reckless and
dishonest management"
And further ON he says.
1T has been denied by Mcssrs. Fink,
Atkinson aud DeyercuN that nver.capi-
talizHiinn affects commerce. They in-
sisi that competition hNcs rates, aud pre-
vents wntcrel stocks from earning diyi-
dcnds. But they destroy their own ar
gument. 10y asking for legal support for
the policy of combinations. On the ground
that the railroads, under competitions
cannot earn fair return upOn their
stock and bonds. IL is the advocates nf
the railways then who Introduce this
question; for u the capitalization Is not
honest aud real, their reasoning IL value
less, WNtcfOh stocks arr used 10 prove
that the rates which will pay profit on
thep, as II they were Invested money,
are reasonable rates, II Is suggested
that rates arr too low. aud that railways
have done too much for the public. ANA
now need aid from the law 10 obtain
fair profits. Lot Us examine the facts.
The earnmgs Of the railways on their ap-
parent capitalization last year were
1.A2 per cent. and for iSS2, Ak stated hy
MI, Finl to the scuutc committee on
labor aud education two years ago, 1
per cent.
But this apparent capitalization, as we
have seen, Is nhout twlce the real in
Nesiment; 81 that the earnings arc about
twice as large cturu upon the real
capitnl as appears from the statement.
Let Us be more liberal to the railways
Than Mt Poor, and assume that the
Al lao. II.a "a
SiWpWN.uOO- On that sum the net
earnings Of S2bS,NO0uO amount to 81
per cent If the cost were represented
half by stock aud hall by bonds. the
uhquestioncd security of the latter would
make I per cent IN ample rate OF interest
requiring ASOOOo,OOl of the net earn.
lngs. This would have left SlSS.tsUn,-
hp Tor dividends, or ~ per cent upon the
stock. In this view. the conditions of
railway business do not aepm TO be 40
devoid OF rocolupcnso aa Mcssrs Fink,
ncNerruN and blanchard would have us
believe, Mr. II. V. Poor, In reviewing
the railway earnings for tSSi, affirmed
That III the fictitious capital could be
eliminated from their accounts. their sue
cess ~ Investments would have no par
hllol,' This remark applies with double
force 10 the railway business of 1854.
In year Of great business failures aud
general depression, when business men
~ ~ Pti'.l""F ~ 'Wn''I y my VIZ
ahi' 70 prrerFr their onpllhl unlinpnlr-
durts wer, AZ inn i,ot cnrn ,vas h',rrn, ma
fnr mi In thn Nnst nnd XIV, nnri,t
nrlee AZ vhnnt In lenrona v,o,id hnrilv
nnv ~. DECENTRALIZATION, oI,o,',',. 9ra,n
.snsaH ,,h.,, n,nnnfnr toria" s,nod tii,
md 1rtisans ,onfronted stnryniion, In
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Ana II ~ MN haJ h..r nIncnI ~, ~
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sh,reholiers a 4 V nnr c,mt uraHt on ,bni.
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The Hon. O. q. Croker on the l1th