Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-05-30

curing stocks, bonds, or other securl-
ties of such lines; but 1T is already Wen
settled as contrary to public policy 10
allow railroads to acquire control over
parallel and competing lines OF trans
! portation Subject to first giving 70
the government the power of supervls-
ion and control which IShave advocated
above. the law should be amended SO
that railroads may be permitted ana
encouraged to make traffic agreements
when these are in the interest of the
general public as well as of the rail-
road corporations making them. These
agreements should of course be maze
public in the minutest detail, anu
should be subject to securing the pre-
vious assent of the Interstate coni-
merce commission.
The movement to regulate railways
by law has come to stay. The ipeopie
of this country have made up theit
minds-aM wisely made up ! tnelr
minds - to exercise closer coItroi
over all kinds OF public service corpor-
! ations, including railways. every MOI,
estly managed railway will gain ana
not lose by the policy, The men mole
anxious to- manipulate stocks tnah 10
make the management of their roaas
efficient and honest are the only ones
who have cause to oppose It.
There has been much wild talk as
to the extent Of the overcapitalizatioh
of our railroads. The census reports
on the commercial value of the rali-
roads Of the country together with the
| reports made to the interstate COM
merce commission by the railroads-on
| their cost Of construction,-tend to snow
that as a whole the railroad properly
of the country is worth as much as the
securities representing 1t, and tnat IN
the consensus of opinion OF investors
the total value on stock and bonds ~
greater than their total face value, not-
withstanding the water that mas
been injected in particular places. Inc
huge value OF terminate, the Immense
expenditures in recent years In doupie
tracking, Improving grades. roadbedsi
and structures, have brought the totaI
to a point where the opin-
ion that the Zeal value is greater tnan
the face value is probably true. NO
general statement such as this can pc
accepted as having more than q gem
eral value; there as many exceptions !,
but the evidence seems ample tina .he
great mass of our railroad secuil.'es
rest upon safe and solid foundations; att. n
Iif they fail in any degree TO conHlah'u nm .'
complete public confidence II IS pc
cause isolated instances OF uncorscioil-
able estock- watering and kindred
fenses arouse suspicion, Whach nasui
ally extends to all other corporate se-S
curities SO long as similar practices
are possible and the tendency 10 re-
sort to them is unfestrairled by Jaw Jaw.
While there hove been many instances
Of gross and fragrant, STOCK lhild tioii'
and while, of course there remain
cases Of capitalization, yet WhMeh zen
/ the statistics of the weaker roads 'ne
oyercapitalized roads, are complned
with those Of the. stronger ROADS, ana
considered in the aggregate, in my
judgment they will not be found TO I'M
nair the Wholesome financial standlng
and position of the railroads as
whole: and while those railway own
5ers and managers who have enrlcneo
themselves BY loading their properties
with securities representing ntlle oI
no real value deserve our strongest
condemnation, on the other hand. OUT
hearty commendation is due tnosg
owners and managers--represen =
believe. the large majority-Who nave
wear after year worked faithfully, pa
tiently. and honestly in building up our
great system Of railways, when nave
knitted together in close commercial
and social intercourse widely removed
sactions of the country and stand sec
ond only to the great business OF agrl-
cutture itself in contribution to ma
+;or.1 prowth and development
private and Quasi-Pubiic Properly.
There is an essential d Inference pc
tween private and quasi-pupllc prop
erty which Justifies setting someWilere
. limit beyond which the accumulall1ls
value in quasi public properties, due
to the necessity of a growing comfnua11-
ity shall not be capitalized.
One Of the most important features
Of the Hepburn act is its having given given
the commission absolute control over
the accounts of railways. me com
mission has Just issued an order to tae
effect that on July next all the ran
ways Of the country subject 10 tne
Jurisdiction of the commission nusl
standardize their accounting methods, !
and the commission is now organizing
bureau Of special examiners, Whose
duty 1t will be, among other things, to
see Hhat the books of the carriers are
kept in conformity with the rules lald
down by the commission. Thus the
means are already at hand and the
machinery already created which Wnen
perfected will put the public in posi-
tion to know the facts, so that the
small investor can exercise an 1ntell1-
gent Judgment when entrustlng ms
money to the. promoters Of great rail- |
way enterprises We hope as one or
the chief means for betterment of con-
ditions to secure as complete publlclty
in the affairs of railroads as now OBJ
tains with regard to national banks.
Points to Iowa.
There need be no fear on the part OF
Investors that this movement for ma
tional 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. It would |
be- hard to find anywhere more pros
porous or more Intelligent community; !
a community of thriving farmers and
thriving townspeople. Iowa did it's
share in the work of building rail- |
roads when the business was one that |
demanded men of the utmost daring ;
and resourcefulness; men like that |
gallant soldier and real captain of in
dustry, Grenville NJ. Dodge; men who |
ran risks and performed feats for |