The herald and news. [volume] (Newberry S.C.) 1903-1937, 1907-07-19
EQUALIZATION OF RAILROADS
The Railroads of the United States
Are Not Over Capitalized as Com
pared with Those of Other
Countries.

Washington, D. G., July lS.-The
most important question likely to en-
age the attention Of the Goth Con-
cess is that Of railway capitalization.
president Roosevelt, Attorney Gen.
eral Bonaparte, and the Interstate
Commeree Commission are studying
the question with a view of arriving
at definite plan to be presented to
the national law-making body when
it convenes the first Monday in De-
cember. President Roosevelt and
Chairman Knapp, of the Interstate
Commerce Commission, have declared
that there is no foundation for the
claim that our railways are over cap
italized. and there is little doubt that
sane and just plan for the control
of capitalization in the future will be
formulated by those having the mat
ter in charge. The plan presented will
undoubtedly be based upon lines guar
anteeing justice to both the railroads
and to those who use them and invest
in their securities.
In view Of the fact that much mis-
information on the subject of railway
capitalization has been diffused
through the medium of yellow jour
mails it has been deemed advisable to
consult those who have given the
quest:sn much thought in order that
the l.,lic may be advised Of unim-
peac lie information relating to this
grea 1estion. With that object in
view Prof. r. T. Newcomb, one Of
our greatest ana most learned econo-
mists and statisticians, has been ask
ed to communicate through the press
Of the country his views on the sub
ject.
Professor Newcomb, in speaking Of
the matter, gave it as his opinion that
there are few subjects relating to the
industrial life Of the American peo-
pie upon which so much misinforma-
tion is current or concerning which
there is such widespread misunder-
standing as that Of the capitalization
Of American railways. This is unfor-
tunate for not only is the direct own
ership Of railway shares and bonds al
ready greatly diffused but they would
constitute, if u1wise legislation could
Ne avoided, the most staple and salts
actory investment generally opened
those whose moderate incomes, as
Irmers, artisans, or clerks, permit on
'ly small accumulations. With the as
lsurance again-t unjust interference
which would result from full public
comprehension, the existence Of such
ready means of investing small saw
hgs would once become the greatest
incentive to economy and frugality.
It is unfortunate, also, because such
misunderstanding is constant threat
against the security afforded by the
billions of dollars Of railway bonds
and the smaller quantity Of railway
shares that are held in the treasures
Of savings banks. life insurance COM
panies, fire insurance companies, and
bonding guaranteeing companies, and
on which depend their ability to full
fill their obligations to millions Of
American citizens. Further than this,
it is unfortunate because it is one of
the causes whica is depicting the
none ymarket Of capital seeking In
vestment in railway enterprises, in
creasing the difficulty Of obtaining
funds for new construction and for
renewals and Improvements and bring
ing about a rise in interest rates that
must prove burden to the industry
Of the nation. misunderstanding has
not occurred because the subject is
necessarily obscure or attended with
difficulty, for it is neither. The In
terstate Commerce Commission has
published eighteen successive annual
volumes Of railway statistics, the Gen.
sus Office has devoted volumes and
folio pamphlets to the same subject
and there are many private publca-
tions that are reliable and valuable.
=, Whoever will study the subject with
intelligence and without prejudice
will, from the materials thus avail
able, be able to reach an accurate con-
clusion.
The latest statistical report issued
by the Interstate Commerce Commits
sion covers the fiscal year which end
ed with June 80, 1905. At the end of
that year the railways Of the United
u States had an aooreoate 1enpth of