The Leon reporter., 1901-12-12

wisest man. The natural reply is that
furry in particular stock on sin
gle day, affecting the prices of few
shares, is not to be taken as either
establishing or breaking down a rule;
that if the average quotations. for a
year were secured, that days record
would have no perceptible effect on the
result. Moreover, it is to be said that
the public could well provide penal.
ties for this sort of stock gambling.
But complete answer to the ques-
ton has been given in the publication
of the details Of the Hill.Harriman
settlement. 1t appears that in that
settlement the amount Of securities of
the two big systems involved is great.
ly increased. Hill and Hartman took
the "market quotation" Of their Sc
curities as representing real values and
issued new lot of securities on this
basis. Great Northern being valued
at $l7S per share, they isssed the new
stock on this basis; that is, l.7S shares
Of the new for every share of the old.
Northern Pacific being quoted at about
$ll5 per share, they issued 1.l5 shares
of the new for each shares of the old
series. That means pretty good con-
firmation of the theory of capitaliz-
ing market values, doesn't it? 1t is
an Endorsement of the exact PROPOSE
ton from the greatest railroad finan-
ciers in the world.
But that was not all. In fixing up
their settlement, the Hartman inter-
ests explained that on Blue Thursday
they had been forced to buy large
amounts of Northern Pacific at much
more than it was worth, few shares
up as high as $1,000. OF course they
didn't make their settlements on this
basis; but still they did settle for
good deal at more than it was worth.
They demanded that they be reimburs-
ed for these debts of the gambling ta-
ble-that was what it amounted to-
and what was the result? Fifteen mil
lions Of new stock was given them
to make good their losses in that cor.
ner.
There is proposal whose audacity
is startling, Warning interests went af
ter each other with their razors. They
ruined the people who were caught
s'short" on stocks which that day were
doomed. Hundreds of little fortunes
and good many not SO little, were
wrecked that day., Was any provis-
ion made for these unfortunates who
were ground between the upper and
the neither millstones? None whatever.
\ But the two giants Of speculation,
having fought their battle to draw
land ruined all who CHANGED to stand
in their way,s now come together, -di-
vide the swag-and issue $l5,000,000 of
additional stock to the side that gam.
bled most heavily! 1t may be said
that it is no concern of the public for
how much these gentlemen choose to
capitalize their companies. But ia it
a concern of the public. The people
who ride on cars and who ship goods
on railroads will be saddlsd for all time
with the burden of fixed charges on
that additional $l5, 100000. To slave
the wounds incurred in days war.
fare of these Molochs of finance; pos
terity is charged with this burden.
| And yet must we listen respectfully
to these over-nice advocates of the ele
gancies who would tell US that we mus
not tax these companies on the basil
that they themselves establish? Is II
not evident enough to every thinking
man that the arguments advanced
against this fair and equitable system
are only advanced in bad faith and fol
the purpose of beclouding the minds o.
people who have not the time or dis
position to study it in detail?