The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-05-31
the ,originel wronsdoers or benencia
OF the wrong.
Must Take Middle Ground

| in"re must he no such rigid laws as
! VIII prevent the development OF Tho coun-
~; a ana such development can only be
! nad II investors are offered an ample re-
| ward Tor the risk they take We would
oe the hrst 10 oppose any unres soma BILE
sS,ca or PENS placed upon the issu
ance on stocks and bonds. for such would
SIMPLY hamper the growth OF the United
! states ior railroad must ultimately
-raI 1Isno on iis credit But this does not
| pIeNent our demanding that there be
LOGGED In the Government power 10 exer-
cIse Jealous care against the imitation
| OF securities, and all the evils that come
! IN IT'S tram. The man who builds a
! great railway and those Who invest in
| II render a great public service: for ade-
! quate transportation facilities are a Vital
neSesslty 10 tho country. We favor full
ana ample return TO such men: but we do
nov favor policy of exploiting the many
| Tor the benefit Of the few We favor
the railway man who operates his rail-
| way upon straightforward and open
business basis. from the standpoint Of
Petmanent n,dnsI, investment. and who. has an
| interest In IT'S future. we are against only
| the man who cares nothing for the prop
| erty after his speculative deal has been
| closed. We favor the railway manager
who keeps in close touch with the people
| along his ilne, rather than In close touch
| WIN the speculative market; VINO oper-
ales nus lne WIN view TO the advan-
! tage he can legitimately get out OF his
railway as n permanent investment by
giving a fair return 70 the stockholders
| and TO the public good service with rea-
| ROAD with a view 10 the temporary spec
ulatiEs advantage which will follow cap
ita1zlng an uncertain future and unload =
ing The securities on the public We
wish 10 make II 10 the interest OF the
\ investor 10 put his money into the honest
development OF the railroads, and there
fore we "ish 10 discriminate against the
man who. while cnrichinc him self LAYS
upon the future owners and patrons OF
The road and above all upon the honest
men whose duty 1t may become TO oper-
ate q road. burden OF additional debt
without adding correspondingly to it's
actual worth. Much is said about the
inahiHty or railway presidents TO agree
among themselves as 10 what policy
should be advocated and whs, plans fol
lowed I'm The effort 10 work out the prob
lens which now present themselves In
so far as The law Is concerned, all ask
OF them is Willingness TO comply with
its spirit. and a readiness 70 move along
the lines Indicated by those who are
charged with administering H. Our policy
Is built upon experience. and our primary
purpose is TO insure the future against
The mistakes and delnquencles Of the
past.
Little Overcapitalizatiop.
There has been much Wild talk as TO
the extent Of the overcapitalization OF
our railroads. The census reports on the
commercial value of the railroads of the
country, together with the reports made
To the Interstate Commerce commission
! by the railroads on their cost OF con-
struction tend 10 show that as a whole
the railroAd property OF the country is
worth as much the securities repre-
sentIng IT, and that in the consensus of
opinion Of investors the total value OF
stock and bonds is greater than their
total face value, Notwithstanding the
water that has been injected in par
ticular places. The huge value OF ter
mlnals, the immense expenditures in re-
cent years In double tracking. improving
grades. roJdbcds and structures have
brought the total investments to a point
whore the opinion that the real value Ia
greater than the face value Is probably
| true, No general statement such as this
can be accepted as having more than a
general value: there are many exceptions
but the evidence seems ample that the
great mass of our railroad securities rests
upon safe and solid foundat tions. IL they
fail in any degree to command complete
public confidence. II is because Isolated
instances Of unconscionable stock water
ing and kindred offenses arouse suspicion.
which naturally extends 10 all other cor
porate securities 80 long similar prac-
tices are possible and the tendency TO
resort to them is unrestraincd by law.
While there have been many Instances OF
gross and naGrant stock imitation. and
while. of course, thee remain cases of
overcaptalzation, yet wnen the statis-
tics OF the weaker roads. the overcapl-
talized roads. are combined with those
Of the stronger roads and considered in
the aggregate, I'm my judgment they VIII
not be found 10 impair the wholesome
financial standing and position OF the
railroads as a whole and while those
railway owners and managers who have
enriched themselves by loading their
properties with securities representing ut
tie or no real value deserve our strong
est condemnation. on the other hand our
hearty commendation is due those own
ers and anagcrs-reprcsentins, be-
lleve. the large majoritY-who have wear
| after year worked faithfully, patiently
and honestly in building up cur great
system OF railways, which have knitted
| together in close commercial and social
| ,,sil al \
| the country and stand second only 10 the
! great business OF agriculture Itself in
| contribution TO national growth ana de-
| Vclopment
Work of the Commission.
Ample provision should be made by
| mcrce Commission, by the employment
| OF n sufficient force OF experts 10 nh-
/ dertake the physical valuation OF eacl
] and any road in the country; whenever
/ and so soon in the opinion or the
! commission such a valuation OF any ROAD
would be OF value 10 the COMMISSION IN
| {ts work There are undoubtedly some
| roads ms TO which II would be an ad-
| vantage from the standpoint OF the com
mission, TO have such a physical Nalua-
/ ton as soon as possible.
! There is an essential difference between
/ private and quasi public property "hlch
| lustifes setting somewhere Imlt oe-
! yond which the accommodating value in
| uuasi- public properties, due to the ne
| cessity of a growing community. shall
not he capitalized.
One of the most important features OF
/ tho Hepburn act is it's having given the
/ commission absolute control over the aC-
/ counts OF railways The commission mas
? lust issued AN order 10 the effect that
4 on hlv / next all the railways OF the
, country subject 10 the jurisdiction of the
. commission must standardize their &C
/ counting methods. and the commission
! is now organizing a bureau OF special
/ examiners whose duty 1T VIII he. among
| other things TO sec that the books of the
| carriers arc kept in conformity with the
I rules laid down by tho commission. Thus
/ the means are alreack at hand and the
l machinery already created which. Thcn
. perfected. will put the public in position
/ 10 know the facts. so that III" small IN
/ Vestov Gun exercise an intelligent jude
menl when entrusling his money TO the
/ promoters Of great railway enterprises.
we hope as one Of the chief means for
I betterulent OF conditions Ia secure as
! complete publicity in th" affairs Of rail-
roads as now obtains with regard 20 ma
. tioual banks.
There need be no fear on the part NJ
Z Investors that this movement for national
. enreryisIon and control over railways VII
/ he for their detrimcnt.
Government Should Aid.
.T, Tgr g E..