The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-07-31

is not a railroad in America. erean, !,
one or two instances, which has 80.
been overcapitalized by mlsmansss'
ment or by the fraudulent practices !,
those connected with it. and placss
with the public at 40 per cent over
its value. From that, you see. a rosd
must earn interest on this 40 per cart
before the shareholders begin 10 90,
anything.
The case is simply this. You hays
got seventyfive millions capital ,or
a concern which ought to have bssr
capitalized at fifty millions. You Nave
the almost impossible task of esrpins
a dividend on the larger capital. Il
the existing railroad mileage Of ths
United States represented a fair. han.
est output from the constitution Of ma
railroad there would be no more "a.
cure or more desirable investment IN
the world. But as 1t represents. in nv
opinion. as evidenced by the CAPITAL.
cation OF bonds and stocks. an OUTLAY
OF 40 per cent greater than it sbouli
have been. the struggle to pay ialr
reasonable dividends will always b
one to exercise the ability and lnse.
nuity of the management in order 10
furnish them year after year, whlla
there will be constant perplexitles in
solving the problem satisfactorily.
If you look about you you will nutics
that the majority OF railroad people
who account for all the large fortunes
of the United states have been init.
mately connected with the operation
OF this excess OF capitalization. placing
the profits to their credit. In one way
or another they have generally become
attached to TRANSFORMATION interest
That being the case. It requires q
great dash of discrimination Oh the
part of buyers in making investments
in American railroad securities to find
out the character of the management
of a railway. This must be taken mo
account, as correct judgment as .
the intentions OF the gentlemen com.
posing a board and as to the character
of he board as a whole is just as in.
portant as the matter of investment
itself. We must know II the dree.
tors propose to put ten millions into
their pockets. Some railroads have
conservative, others speculative
boards.
~
Mr.. Keene evidently takes small ska
n the republican argument that ID.
administration is responsible
or the good price which wheat IA
at different times recenul,
and it Is apparent that he believes fspae,
ican legislation has had nothing 10 q
with the prosperity which has been is,
10 greater or less degree during the pa
.hree wears. but which he does not thll
substantial. Ills ideas on prosperity az
embraced in the following:
The great proposition l hold Ws
that agriculture is the base Of TIE
prosperity Of the country--that saa
such collateral things as beeL psA
and lard. You may attempt to eSaae
the proposition. but il Of no VS.
bad crops give bad stock marms'
good crops give good stock narAes
Without them you have no prosperu.
I'VE havo been increasing our eApols
of manufacturers goods in 2 wy
which is very natterlng. but TINS ~
crease has been made at the e1psl.
of the American, who has paid 'e.'
high for it. because the tarih = exec
sive. Our manufacturing business
on stills. Americans paying @r
cent more for manufactured sv.s,
than they should. l do not favor Ia
trade. but a fair and moderals ''i
Summing up with regard TO the Da''"
situation Mr.. Keene said: .,
81 do not look upon the business :"
alton in the United States as ptosps
Gus. NV particular reason is lna.
have had period of four years u
traordinary excitement, when d,
on the ebb That kind of business
not live when the excitement ~ Is
You have that overcapltalizaiiSn :,
look at in the eve, Trade IS ns ",
going on. but that is not GONG NV
you II you have overcapitalisa"0D
Observation-Disclosures"
lst week. The Tuecumseh mill WIZ III