New-York tribune., 1900-04-22
TROUBLE FOR WITERED STOCKS

A few days ago the voters of Columbus Ohio.
without regard TO party. Joined in electng the
Rev. Washington GLADDEN. member of their
City Council. This is comparatively an unim-
portant office in small city. but DR.. GladdenS
platform is one worthy of some attention. 1t is
interesting Il declara ton OF his views
and revelation of the attitude of people in one
city II is more interesting. however, because it
puts and puts clearly point that is being
thought of more and more in every city and
town one of the burning questions" mt Co
lumhus the regulation Of street railroad
fares on this subject Or. GLADDEN. said:
! believe that a straight three-cent fare-per-
haps with transfer rate of five cents-would
enable the company to pay good interest on
what the road and its equipment have actually
cost. They could not probably with that rate
pay interest on the fictitious capital which they
have issued: but It is not Just that the users of
the road should be taxed to pay interest this
kind of capital The company ought to have
fair remuneration upon its actual investment,
no more. We want to Confiscate no mans earn
ings savings: want every man. capitalist
laborer. to have all his rights; but want
no man To be given legal power by the city to
tax the rest of to pay interest watered
stock A three-cent fare will afford a good re-
muneration upon the actual cost of the plant
and equipment, and the city government, acting
in the interest of the people, should secure for
them the reduction in the cost of transportation.
In New York City this question is presented
in another form. The railroad companies
raising the cry of contiscation because they are
threatened with taxation of the properties they
enjoy at something like their true value. They
say just what the companies threatened with
tlrec-cent fare say: We cannot do it and pay
the usual dividends stock And they
complain with even less justice. There may be
some doubt about the prOpriety of reducing
fares below the customary rate merely on the
ground that n company can afford it, Perhaps
there are no moral or legal obstacles in Column
bus to such action. That. of course, depends
the circumstances in each particular case In
some Instances ii might be confscatiou. for it is
just is much c0ntiscation arbitrarily TO halve an
honestly earned 20 per cent profit as completely
take "A > per cent profit. But a company has
no right to demand exemption from taxes till
its dividends are paid. Certainly it has no
reason TO expect public sympathy when it walls
that its property is excessively assessed be-
cause it cannot pay dividends on valuation
greatly larger than the assessment. Capital
stock is supposed TO represent value. If it does,
honest management of a road in great city
like this should result in good dividends after
The taxes on the actual worth of the property
and privileges are paid, just as DIR. GLADDEN.
says honest management should do with
three-cen fare in Columbus If, on the other
hand the capital is water and fraudulent it
has no claim to consideration. At any rate
pleas of inability to pay taxes because of the
dividends due on watered stock are puerile. AS
we'll might individual ask exemption from
taxes on the ground that he needed all his in
come to pay gambling debts.
One Of the points where the franchise tax
shoe most pinches is on watered stocks. The
assessors take them at the companies own rep
resentati0n and the result is weeping and wall
ing, which will not be wasted If it leads TO
pentance.