The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1907-04-05

InimicaI to Interests Of the Pco-
Dic-No Comprehensive nor PraCti-
cable scheme Uls Bocn Suggested
for BasiuS Rate, on capitalization
Greensboro. y. c., April 3-At the
annual banquet Of the merchants and
manufacturers club Of Greensboro to-
night. W. w. Finley, president OF tho
Southern Railway Company respond
ed TO the toast North Carolina and
it's Relations TO the Railroad Prob
lem"
After discussing the interest Of
North Carolina in improved railway
transportation and pointing ou the
need of additional railway construction
in the state, Mr.. Finley spoke OF the
identity OF the interests Of the pub
lie and the railways and showed what
would be- the effects upon both OF some
of the proposed Legislation. lie said:
The interests Of a railway and OF
the people dependent upon H. for trans
portation are 81 completely Identical
that l have no hesitation IN saying
that every proposition that Is inimical
10 the railroads Will be found, 90 care
ful examination, to be equally inimical
in its ultimate effects, To the interests
Of the people. Of the territories served
by their lines"
Mr. Finley said that, while tho cap
italization OF each railroad must be
considered OF it's merits, no was oop.-
vinced that there wa5 serious popular
error in suDposinG that there Is any
considerable over capitalization OF
railroads in the United States. lie
pointed out that some of the exgp-
ments as to over capitalization were
based on estimates OF average cost of
construction that might be ample for
lightly built and lightly equipped
roads in level or nearly leyd ooun-
try with few bridges and tunnels and
without expensive city terminiAaAs
Continuing. he said:
When the entira facilities OF the
carriers are considered, including
rights Of way through cities. towns,
cost Of railroad construction that the
and elsewhere, terminals, yards. road
bed. tracks. tunnels, structures and
equipment, think 1t will be admitted
by all persons acquainted With tAe
property of these carriers couiu lot,
generally speaking. be reproduced az q
cost equal 10 their capitalization. But
leaving aside tho question as 10 wheth-
| eS the railroads Of this country aro
over capitalized I wish 70 say 70 ysg
J that the ldsa that rates are controli-
ed by capitalization Is entirely with
out justification. CapitaliZau ton nay
ectharf hisaloiofnftE7 E7 7E E7Tse9e
affect the intrinsic value Of com-
pany's securities, and thus effect tho
investing public Il cannot control =
carriers rate and, hence, cannot afec4
the shipping public"
He supported this statement By quo
tauonS from president Hadley. OF
Yale. and from Chairman Knapp. OF
the interstate commercs commlssisn.
Mr.. Finley gave example OF the COM
petition OF producing localities. OF
marketA of carriers. and Of commo-
dities 70 show that railway charges
are the outgrowth OF economic laws.
and commercial conditions.
No rate" he said. "can ever. with
proper consideration for the business
for the country or Of the carriers, b.
made Independently Of these laws-not
by legislation arbitrarily fixing the
rate and not by capitalization Of
the carrier likewise Arbitrarily fixing
the rates that are the hesultant Of
the management Of q railway Is power
less 30 Ak It's rates. II must accep'
the rates that abe the resultant o,
economic and commercial forces which
are as absolutely beyond the oontro
OF It's managers a. are the tides Of th'
ocean
"In ali the discussion about sup
posed relation between railway capital