The Denison review. [volume] (Denison, Iowa) 1867-current, 1907-06-05
ROOSEVELT SPEAKS.
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the original cost of the building of
the road as to know what it wou Id
now cost to reproduce it; from another
standpoint the human equation-tha
is. the management of the roads
more important by far than the ply
steal valuation; and the physical val
uation 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. Therefore the
physical valuation can never be more
than one of many elements to be con-
sidered: but it is one element, and at
times may be a very important ell
ement. when taken in connection with
the earning power. franchises. or
iginal cost and business possibilities,
IN reaching an estimate on the pro-
perty and the rights of corporation
as going concern.
Earn ON Securities.
The effect of such valuation and
supervision of securities cannot be
retroactive existing securities should
be tested by the laws in existence at
the time Of their issue. This nation
would no more injure securities which
have become an important part of the
national wealth than it would con-
slider proposition to repudiate the
public debt.
One of the most important features
of the Hepburn act is its having
given the commission absolute control
over the accounts of railways 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 in
telligent judgment when entrustlng
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
publicity in the affairs of railroads as
now obtains with regard to national
banks.
Alludes to Iowa.
There need be no fear on the part
Of investors that this movement for
national supervision and control over
railways will be for their detriment.
If they doubt this. let them study the
history of the railway control move
ment in such state as Iowa. 1t
would be hard to find anywhere a
more prosperous or more intelligent
community: community of thriving
farmers and thriving towns people.
Iowa did its share in the work of
building railroads when the business
was one that demanded men of the
utmost daring and resourcefulness ::
men like that gallant soldier and real
captain of industry. Grenville M.
& Dodge men who ran risks and per-
formed feats for which it was difficult
to make the reward too high; men
who staked everything on the chances
of business which today happily
involves no such hazards. Iowa was
at length forced to'undertake the work
of regulating the railways within her
borders. There was great cutlery
against it. 1t was proclaimed that
such effort would ruin roads already
built, and prevent building more. But
Iowa proceeded with the task. and it
resulted. not in ruin and stagnation.
but in increased safety and profit to
the honest investor. Instead of put
ting roads into the hands Of receivers.
it was followed By prosperity that
rescued many of them from receiver
ships.
No state. of course, can do for the
railways what the national govern
ment has already done for the banks.
and that government should do some
thing analogous for the railways.
National bank stocks are brought and
sold largely on the certificate of
character which the government. as
a result of its examinations and SUI
pervision. gives to them. 10 give
another illustration from 1owa's ex-
perience. when the national banking
law was amended to allow small banks
to take out national charters, great
numbers of the state banks of that
state were reorganized into national
institutions. The investing public
was ready to back with unlimited con-
fdence the institutions on which the
federal government hand set the seal
of its confidence and approval. The
railways have not been given this
certificate of character. uader the
seal of the national government. and
therefore many people who invest
freely in the shares Of banks are re-
luctant to buy railroad securities.
Give them the same guarantees as to
railroad securities which we now give
them as to national bank shares, and