The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1907-06-06
Contrary to Public Policy.

terest of the general public as well as
OF the railroad corporations making
them. These agreements should Of
course be made public in the minutest
detail, n should be subject to secur-
ing the previous assent of the Inter
state Commerce commission.
The movement to regulate railways
by law has come to stay. The people
Of this country have made up their
minds-and wisely made up their
minds-to exercise a closer control
over all kinds Of public-service cor
porations. including railways.
We ask for such laws as in their
essence now obtain in the staid old
commonwealth OF Massachusetts; such
laws as now obtain in England. The
purpose Of those of US who so reso-
lutely believe in the new policy, in it's
thoroughly carrying out and in It's pro-
gressive development, is in nc sense
punitive or vindictive.
Can Trust Supreme Court.
The supreme court could be trusted
In any event to see that there should
be nothing done under the guise of reg
ulating roads to destroy property with
out just compensation or without due
process OF law.
AS a matter of course, we shall pun
ish any criminal whom we can convict
under the law; but we have no inten-
ton of confounding the innocent many
and the guilty few by an %ill-judged and
sweeping scheme Of vengeance. Our
aim is primarily to prevent these abuses
in the future. Wherever evil doors can
be, they shall be, brought to justice;
and no criminal, high or low, whom we
can reach will receive immunity.
But the tights of innocent investors
should not be jeopardized by legislation
or executive action; we sanction no Leg
i%slation which woul fall heavily on
them, instead of OF the original wrong
doors or beneficiaries of the wrong.
There must be no such rigid laws as
will prevent the development OF the
country, and such development can
only be had if investors are offered an
ample reward for the risk they take.
We would be the first to oppose any I'M
reasonable restrictions being placed
upon the issuance of stocks and bonds,
for such would simply hamper the
growth OF the United States: for a
r%ailroad must ultimately stand on it's
credit.
AGAINST Security Initiation.
There should be lodged in the govern
ment power to exercise a jealous care
against the imitation of securities and
all evils that come in it's train.
we favor the railway manager who
keeps IN close touch with the people
along his line rather than in close touch
With the speculative market; who oper-
ates his line with a view to the advan-
tage he AN l~egitimately get out of his
faiiWay as a permanent investment by
giving a fair return to the stockhold-
ers and to the public good service with
reasonable rates; who does not operate
ms road with a view to the temporary
speculative advantage which will follow
capltallz1ng an uncertain future and
unloading the securities on the public.
There has been much wild talk as to
the extent of the decentralization of
our railroads.. The census reports on
the commercial value Of the railroads
OF the country, together with the re-
ports made to the Interstate Commerce
cor7Eission by the railroads on their
cost ~ construction, tend to show that
as Q whole the railroad property of the
country is worth as much as the Sc
curities representing it, and that in the
consensus of opinion of investors the
totsF value of stocks and bonds is
greater than their total face value. not
w~ithstanding the water that has been
injected in particular places. The huge
valne of terminals, the immense expen-
dltureS in recent years in doubla track
ing, improving grades, roadbeds. and
structures, have brought the total in
vestments to a point where the opinion
that the real value is greater than the
face value is probably true. No general
statement such as this can be accepted
as having more than a general value:
there are many EXCEPTIONS; but the evil
dence seems a1nple that the great mass
OF our railroad securities rest uDon
to1LS 'tIid Sotlu lO~uiluaU1O1S, II thew fail
in any degree to complete
public confidence. it is because isoiated
instances of unconsciorable stock wa
tering n kindred ofTenses arouse sl1s-
picioli. which naturally extends to all
other corporate securities SO lony as
similar practices are possible and the
tendency TO resort to them is unra-
strained by law.
Fer Physical Valuation.
Ample provision should be n,ada nv
congress to enable the Interstate Com
merce commission, by the e~mployment
OF a sufficient force of experts. to un-
dertake the physical valuation Of each
end any road i'll the country. whenever
and so soon as in the opinion of the
commission such a valuation of any
road would be of value to the COM
mission in it's work. There are UNI
doubtedly some roads as to which If
would be an advantage, from the stand
point of the bEciness of the commits
sion. to have such a physical valuation
as soon as possible.
How important physical valuation
will prove as one of the factors to assist
in fixing equitable rates l am not able
to Judge: but that it will be OF GER
tain Importance can be safely assumed
because OF the opinions of the Inter-
state commission, and OF
the courts, and because of the recent
action of the Northern Pacific railroad
in advancing such a physical yalpa-
ton as decisive on it's side in a rate
controversy. Such a valuation would
necessarily help to protect the rail-
roads against the making of inadequate
and unjust rates, and would therefore
be as imnortant from the standpoint
OF the protection OF tbs railroads as
from the standpoint of the protection
of the public; and OF course it is naces-
sary to tho enduring prosperity and
development of the country that the
railroads shall yield reasonable profits
to investors.
Original Cost.
It is from one standpoint quite as
important to know the original cost Of
the building of the road as to know
what it would 10 cost to reproduce
it; from another standpoint the human
| enuatinn-thaI is the cement of