Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-20
National Incorporation.


thought he would prefer having national
charter for his railroad
Senator Newlands continued to question
the witness on the value of the stock of
his roads and on various systems of cap
italization.
Are you getting ready to have the gov
eminent buy all these railroads." Senator
Cullom asked of Senator Newlands
mo, l am not" replied Mr. Newlands
I am questioning him in relation to ma
tional Incorporation.
Mr.. Morawetz said that in eight years the
Atchison system has spent s33. 100000 of its
surplus on its improvements, against which
1t had not and never would issue stock
Mr.. Newlands asked whether in the
event of a national act of incorpora ton
Congress could prescribe the tax, the roads
would pay to the government and then
make an equitable distribution of such tax
among the several states.
Mr.. Morawetz said he thought such a.
plan offered grave difficulties, but he was
not prepared to say whether it would be
free from constitutional objections.
Speaking Of plan for the regulation of
the amount of stock a railroad company
might issue under a national act of incor-
poration, Mr.. Morawetz said:
Il don't see that that is matter of
much consequence, except as innocent peo-
pie may be fooled in buying such securi-
ties at too high price; but that 1 think,
Congress has not much to do with
In Texas. he said, the attitude of .he
people of that State toward corporations
and the fact that no bonds can be Issued
unless they are approved on their back by
the state authorities makes it impossible
to sell such securities. 1t was not only
that the state regulated the amount of
stock issued that affected such values but
the further fact that the state commission
sees that no road is permitted to earn more
than about per cent on its capital. The
result of the limitation of capital and in
terest that may be secured, he said al
fnr he riSl hot co
investing their money meet.
Then If a man has money to invest at
per cent he is more inclined to lend 1t in
a safe way rather than to invest in rail-
roads in TeXas?" Senator Foraker asked.
Exactly" replied the witness.
Welfare of Employees.
Mr.. Morawetz said that no class of en-
ployes of the country are better paid or less
in need of special protection by the gov
eminent than are railroad employees.
Mr.. Newlands questioned the witness as
to the desirability of a system of accident
insurance. the money needed for that pur-
pose to be paid from the gross earnings of
the railroads. Mr.. Morawetz did not ap-
prove of such a proceeding. He did not
favor such paternalism.
Senator Dolliver called the attention of
the witness to a statement in the annual
sion, to the effect that last year the rail-
roads of the country earned $155, 900
more than they earned in 1900.
Mr.. Morawetz said he did not agree with
those figures and he was sure he could
pl oduce data that would prove to a dem
onstration that they were not correct
II am sure l can show" he declared.
that the roads last year earned less mon
ey for the business they handled than they
earned previously.
Senator Newlands asked the witness
whether he did not think there was a. pre-
vailng idea among railroads that coyfipeti-
ton was a bad thing so far as railroading
is concerned
"a good many look at it that way" he
responded.
well, / do" declared Mr.. Newlands. 81
look upon railroads as natural monopolies."
Mr.. Newlands Contradicted.
Mr.. Nev;lands made statement in reply
TO what the witness said as to the impos-
sibility of Congress undertaking to limit the
earning power of railroads. that that is done
in New England.
President futile of the Bosom and Maine