Los Angeles herald., 1907-10-20
HARRIMAN's INTERVIEW

IN the course Of an interview:
Money Is like liquid. The moment
you place an obstruction in front Of It,
1t causes q diminution in the flow.
This obstruction has been placed in
front of the liquid stream Of money,
and 1t has already caused serious
check in it's flow. This obstruction is
the apprehension which has run like
prairie fire through the land and has
permeated the minds of the people.
This apprehension has been caused
partly if not entirely by the agitation
against corporations in general and
railroads in particular. And It will last
until the people awaken to the fact
that we must have saner comprehen-
sion upon these important subjects
The attacks on capital that have been
going on throughout the country for
SO long are enough to make a man
SICK" etc.
There are none SO blind as those who
will not see, and the truth of that
aphorism has again been proved by Mr..
Harriman's apparent utter failure to
appreciate the real trouble with such
corporate interests as those with which
he has for some time been so promi-
nently connected. Let us see just what
the history of Mr. Hartman and his
companies during the past few years
proves.
The national congress enacted the
amended interstate commerce law in
the earlier portion of 1895. and it took
effect on August 20 of that year. Sub
sequent to that date the stocks and
securities of Mr.. Harrimans company
reached their highest quoted value upon
the markets of the world.
1t is true that the legislatures OF
some of the states convening in the lat
ter part of the last and the first part
of this year passed laws regulating
railroads But of this legislation that
which might have had any direct tend
ency to reduce the value of railroad
securities was what is known as the
2-cent fare regulations passed by a
number of states, and by the terms of
which the passenger fares of railroads
were limited to cents per mile. Some
Of Mr.. Harriman's companies were
affected by legislation of this character
enacted by the legislatures of Nebraska
and one or two other states.
That the effect has not been detri-
mental is shown by the fact that never
in the history of Mr. Harrimans COM
panies have they reported such gross
and net earnings as they have reported
in the last twelve months, and the last
report of his companies for the fiscal
year ending June 80 of this year shows
the greatest earnings, both net and
gross, in their history. Notwithstand-
ing this fact the stock of Mr.. Harri-
mans Union Pacific railroad which is
regarded as his pet and favorite and
the center of all his great railroad
interests, sold during the last week on
the markets of New York at 112h
The same stock about the first of this
year sold in New York at 1SO.
This reduction in price was not
caused by the operation of the inter-
state commerce law passed by the
national congress, for the reason that
this very st6ck reached it's highest point
months after this law went into effect.
Nor could it have been caused by the
effect of state legislation referred to,
because in the face of this legislation
it is shown that it's earnings have
increased.
1t is remarkable fact, worthy of
explanation, that his Union Pacific
stock-a 10 per cent dividend stock,
which some time ago it was said would
shortly be raised to II per cent stock
has fallen off on the Wall street mar
ket about 35 per cent since the begin
ming of the year, and has lately sold
up to within the past year have appar-
emily governed the market value of
railroad stocks it should now be selling
for at least 200. Let us see if this can
be accounted for by some other
matters.
On November Is the interstate COM
merce commission, of its own motion,
instituted proceedings sin the matter
of consultations and combinations of
carriers, relations between such car
riers, and community of interests, etc."
and in the course of these proceedings
took testimony showing the peculiar
methods which had characterized Mr..
Harrinian's dealings with the railroad
properties under his control. One of
Mr.. Harriman's properties under inves-
tigation was the Alton, and the details
of this investigation as reported by the
interstate commerce commission would
be most illuminating reading for the
average citizen were they not too long
to pe produced here. The result. how
ever, is summed UP by the commission
in it's reports under the heading "Inde-
fensible Financing" as follows
FROM this brief synopsis of the
exploitation of the Chicago & Alton 1t
is evident that its history is rich in
| Illustrations of various methods of inde-
fensible financing. First came the
profit to the stockholders arising out
of the sale to themselves of $S2.000000
of bonds at 65, which sold for several
| .....a.oo l;,.-. 700 30 for oO1L m QA Gaooud