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

the roads more important by far
than the physical valuation; and the
physical valuation Of the road in one
region may have an entirely different
relation to the real value of the road
than in another region where the
conditions are utterly different. There
fore the physical valuation can never
be more tina one of many elements to
be considered; but it is one element
and at times may be a very important
element, when taken in connection
with the earning power, franchises, or
iginal cost, character Of management,
location, and business possibilities, in
reaching an estimate on the property
and rights Of a corporation as a going
concern.
The effect Of such valuation and
supervision of securities can not be
retroactive. Existing securities should
be tested by the laws in existence at
the time of their issue. This nation
you'd no more injure securities which
have become an important part of the
national wealth than it would consider
a proposition to ~repudiate the public
debt. But the public interest requires
guaranty against improper multiplica-
ton Of securities in the future. Rea-
sonable regulations for their issuance
should be provided, SO as to secure as
far as may be that the proceeds there
Of shall be devoted to legitimate bust
ness purposes.
Harm No honest Person.
In providing against overcapitaliza-
ton we shall harm no human being who
is honest; and we shall benefit many,
for overcapitaliZation often means an
imitation thai invites business panic;
1T always conceals the true relation of
the profit earned to the capital in
vested, creating a burden of interest
payments which may rebound to the
loss alike of the wage Garner and the
general public, which is concerned in
the rates paid by shippers; it damages
the small investor, ~discourages thrift.
and puts a premium or gambling and
business trickery.
There is an essential difference be-
tween private and quasi-public prop
erty and which justifies setting
somewhere a limit beyond which the
accommodating value in quasi-public
properties, due to the necessity of a
growing community, shall not be cap
italized.
the Hepburn act is it's having given the
commission absolute control over the ac-
counts of railways. The commission has
Just issued an order 70 the effect that on
try subject to the jurisdiction of the COM
mission must standardize their accounting
methods, and the commission is now or
ganizing a bureau of special examiners.
whose duty 1t VIII be, among other things,
TO sec that the books OF the carriers are
Kept IN conformity WIN the rules laid
down by the commission. Thus the means
are already at hand and the machinery
ALREADY created which, when perfected,
will put the public in position to know
the facts, so that the small investor can
exercise an intelligent Judgment when en-
trusting his money to the promoters Of
great railway enterprises. We hope as
one of the chief Means for betterment of
conditions to secure as complete pub
Lefty in the affairs of railroads as now
obtains with regard to national banks.
No Detriment to Investors.
There need be no fear on the part of
investors that this movement for nationa!
supervision and control over railways Will
be for their detriment. If they doubt this,
let them study the history of the railway
control movement in such a state as Iowa.
1t would be hard to find anywhere a more
prosperous or more intelligent community;
a community of thriving farmers and
thriving townspeople. owe did its share
in the work of building railroads when
the business was one nat demanded men
of the utmost daring and resourcefulness,
men like that gallant soldier and real cap
tain OF Industry. Grenvilie NJ. Dodge; men
who ran risks n performed feats for
which 1t was difficult to make the re-
ward too high; men who staked every
thing on the chances of a business which
today happily involves no such hazards.
Iowa was at length forced to undertake
the work OF regulating the railways with
IN her borders. There was great outcry
against it,. 1t was proclaimed that such
effort would ruin roads already built. and