The sun., 1907-11-30
IL FrNaNrFAa sIrNlEloN.



small MnRasneamrrf.
TO rHR EDtroR or Tns sun SD; Not
being a nnanoieF I cannot say whether the
AdmlnlatratiOns per cents will serve their
Intended purpose or not. am sure they we're
well meant. but hope they viii be replaced
before they come due. since they come due
At the season when money 10 always scarce.
But even W they are replaced before they
agGravate the normal tight money OF next fat
they are stire 70 be condemned because they
tall short Of reaching. let alone cuFtng. the
real evil. or hindrance TO resumption Of busi-
ness. which confr0nts ns. thAt n the inability
Of the ruilroads TO resume their usual-eNpen-
ditures for new equipment. traokage and the
like
The investor has given convincing demon
stratiOn Of his loss OF appetite for railroad
securities. What or who hae brought about
this state of affairs, or what the division OF
responsibility therefor In. Il would be bootiess
&C this time to attempt to ascertain: the fact
which interests every one is that the railroads
cannot get. at fair rate. even small part OF
the money needed 20 carry on necessary nm
provements. and that resumption Of their
expenditure n In fact. n not In theory,
necessary condition precedent 20 the revival
Of business on q sound foundation.
Personally Think that the Hartman revela-
tlons In the Union Pacific and the Alton rail-
roads. plus the financing OF the R0ck Island
Railroad couple Of yeara sgo. aggravated by
Harrimans absolute reflsal 90 eliminate him.
self from the view and Olfactories Of investors.
IL largely responaible for existing conditions
I do not ToSe sight Of the fact that the talk
OF "watered stock and Of the "necessity 81
squeezing water out" is responsible in part.
Neither do I lose sight OF the fact that the
formation OF corporations composed Of direc-
tors Of parent concerns. having as their object
the milking OF the parent concerns. through
commissions and otherwise. is also responsible
In some degree That the public has become
educated to the difference between the cor
poratton in which there are no intermediate
milking dlrectors and the other kind is shown
support given TO United States Steel, with an
ssSs sSS o. ~ 1Snts With fG am ss
of points. But. i repeat. Il s prsntisss to
the sTisting state Of affairs; 4 is "a condition
and not a theoy which confrOnts US.
time the railroads. can get the nsoesssTy
money At fair rates in the regular way. from
ESsstO We S are Gs sG;s e %.'Hs .ss % ysy long
4 tors had regaiped their former CONFIDENCE
| lappetitel, and this IN turn would mean wait
cleared UP and adju4ted to new conditions and
I new legislation. I know no one who would
sSis Would rsaniTe U s. but q even ven he most opti %
mtstic must admit that Il would be measured
by years. not by month"; 4. it.
he admitted that the old order Of things has
pasSsd away. The day o. Snlimited stock
aud rate wars. u o. the past. Equally, the
leaving Of the statutes in their present shape
tSs % form % az rniircsa dirsctoTsSiD. rev. cgn mill milk
his ward. In unthinkable. II anything were
necessary to ram that cOncluslon home, Mr.;
| this city. furnished Il when he asked so iaunt-
ily the other day IN reply TO q auest!9n hav-
! you going TO do about itP"
The abuse q The public. O. Investors i apd
q sse x % aSs E vhs US SeE TSs
| dealing OF which have spoken 10 q oencrste
| demonstrstion OF the lack Of real LnteilIgencs
mitted Il. In view OF this. their plea against
outside reKulation, based on the assertion that
| on their particular business, y TO laugh;
| They have demonstrated that they are really
and essentially lgnorant
OF real intelligence is. In the last solution. the
understanding and acceptance OF the square
roads are suffering from to-day is simply the
reflex action OF their own lgn0raDce and
swindiins, browbeAtlnE Aad imposing on or
simply playing petty larceny tricks on the
public makes very little ir any difference.
sake Ok the best interests OF the whole people.
lent It's credit 70 the railroads and GOT the
SaS. asaiS not aOH nccsssary IN the same way y soS
under the same conditions, loan OF $780,
1 NnUWtTUl0CNE
| the trunk lines with entire safety and imns-
diate benent 70 the public ae large. under
such a contract as would insure the repay
ment Of the entire Investment With interest.
| public toward the railroads would incline the
| corporations TO accept O0yernment reguia-
tiOn in the things most justly complained OF.
| TO wit. rebatinR, stock watering. favoritism
in car service grating directors and the like.
Besides this the bonds issued would AFFORD
| a basis for more circulation, and this added
circulation would 90 far TO stop the present
very popular ory for ian elastic currency"
| This cry for elasticity Is In some Of its every
| wonder whether the average person who
| howls for an elastic currency really knows
| what he means. My best guess on the sub.
only one way. that IL TO mean expsnsion.
| have seen very few people who wanted the.
other end Of elasticity. the contraction OF
business on your own capital only. To q man
up tree it seems that II legislation were
enacted making it obligatory. on the Secre-
receipts from customs and taxes. instead OF
! locking them up ae matter OF law and letting
| them out Rs matter OF favor, decided step
finance. AstO maintaining gold reserve. let
US be honest for once and pay 81 our green.
backs. They were and are IN effect forced
loan. Let the national banks be Obliged to
keep their rs per cent. reserve in gold Let
| us get down TO hard pan. Incidentally this
I would enable US to go out Of the varehousinR
business as regards precious metals
! The foregoing suggestions are not the result
| OF omniscienco or OF expert knowledge, but
\ are made simply as the result OF an end savor
Of whether the truth Is paiassbie or the rev erse,
4 and to out out the national disposition to think
| We can play tricks with the laws OF finance
SSSmpicsted by teTDeraHMsnts al, Worship Of
BUrSHIo. November Is.