Weekly Arizona journal-miner. [volume] (Prescott, Ariz.) 1903-1908, 1907-06-05
btained by pledging his own personal

and open business
basis. from the standpoint of pcrman.
INT investment. and who has an inter
rsl in iis future; we are against only |
the man who cares nothing for the |
property after MS speculative deal IN |
lis securities has been closed. We favor |
nc railway manager who keeps IN clos"
touch with the people along his line |
rather than in close touch with the
speculative market who operates his
inc with view 10 the advantage he |
IAN legitima,cly get out Of his railway
ns permanent Investment Icy giving u
fair return 10 the stockholders and TO
the public good service with reasonable
rates; who does moi operate his road
with view 10 the temporary spccula-
tive advantage which will follow cnpi'
lalizing an uncertain future and IN
LOADING the securities on the public.
W. wish 10 make IL 10 the interest OF
The investor to put his money into the
homes, development Of the railroads,
aud therefore we wish 10 discriminate
against the man who, while cnriching
himself, lays upon the future owners
and patrons Of the road and above all
upon the honest men whose duty u
may become 10 operate the road. -
burden Of additional debt without add
ing corrcspondinsly to its actual worth.
There has been much wild talk ~ To
the extent Of the ovcrcapitalization OF
our railroads. Tine census reports on
Of the country. together with the re
ports made To III. Interstate Commerce
commission 10y the railroads on their
cost of construction, tend to show that
that as whole the railroad property
Of the country il worth as much IA the
securities representing IL, and that in
| tho conscnsus Of opinion VI investors
the total value Of stock and bonds II
greater than their total face value,
not withdrawing the "watcp' that
has been injected in particular places.
The huge value Of terminals, the i'm.
mcnsc expenditure in recent years in
doublctracking, improving grades,
roadbeds, and structures. have brought
the total investments to n point where
the opinion that the real value is great
er than the face value is probably true.
| No general statement such rs this can
be accepted rs having more than n gen
eral value; there are many exceptions
While there have been many in
stances Of gross and fragrant stock in
Aation, and while, Of course, there re
main eases Of over capitalization, yc'
when the statistics Of the weaker roads
the ovcrcapitalizcd roads, are com
bincd with those OF tho stronger roads
and considered in tho aggregate, In m,
judgment they will not be found TO i'm
pair the wholesome financial standing
and position Of the railroads rs 1
whole; and while those railway owner
and managers who have enriched them
selves by loading their properties will
securities representing little or no rca
value deserve our strongest condemns
ton, on the other hand our hearty com
mcndation is due those owners an,
managers representing. | believe, thu
large majority who have year afte
year worked faithfully, patiently AM
honestly in building up our great sys
TEN Of railways, which have knittc'
together In close commercial snd 90
siai intercourse widely removed section
Of tho country. and stand second OIL!
to- the great business Of sgTicuitur
itself in contribution 10 astions
growth ssd development.
Il, Ample provision should be made b!
Congress TO enable the Interstate Con
nesce commission, by the smpioyuen
Of = suAicieat force Of experts. 10 u
!dertske tho ptysicsi valuation Of esc
and any road In The eouatry. Sheu
lever snA 20 soon ~ 10 the opinion o
the commission such . vsluatioa o
any road would be Of vslue to che con
, misios IL its work.
II Al the outset let IL be understood
|, that physical valuation 10 no pansces
, IL IL no suficient measurement OF
rate; but IL will be ultimately needle
, ~ an essential instrument In sdmini'
| ltrstivc supervision.
. How important physical vaiustio
will prove az one OF the factors to a
= sist in fixing equitable rates l am no
able 20 Judge, but that IL viii be Of
certain Importance can be safely Al
!, sumed because Of the opinions Of IN
! Interstate Commerce commission and q
the courts, and because Of the reeen
: action Of the Northern Pacific railroa