The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1907-01-29
LEGISLATION

and Otner securities II ILLS u
The reaso assigned by many is the
tendency to drastic legislation against
corporations. especially railroads. by
congress and the legislatures of many
Of the states. It is argued that invest
ors fear that the value of these s3curi-
ties will be lessened through decreased
earning capacity on the part Of tho CO..
porations as the result of the laws al
ready enacted and Of more stringent
ones which are threatened.
The railways and other corporations
are certainly getting their full share
Of regulation of their affairs by laZjs-
iative enactment, and i the present
popular anfmosity hat is being SYSTEM
~atically stirred UP by some Of our }eC-
pie against corporations goes much
injury being done to important classes
of business all over the country. The
HDiR pOGdI1OIlS SIlOuAO Lt dAuC4 WI
troll to some extent by congress and the
legislatures. We do not suppose
any one will deny this. They should
be checked in any attempt to override
the rights of the people or to subject
them to trouble and inconvenience
which could be avoided without injury
TO the corporations; but in ali such
control there should be q spirit Of fair
ness and justice. There ear be legis-
lation in the interest Of the people
without injustice to the corporations
The property Of the latter should not
be deprecated in value through legis
lation in order to put money III tn
pockets Of the people. It is argued
that this very thing has been done and
that the signs Of the times point 10
still more of such legislation.
Admitting that the trend OF leg.&ll-t
ton has been to depreclate railway
SIOthS anu Julius dIAO lAut >
are afraid that the end has net yet
been reached IN this line, is not there
another for the fall in price, OF
this class of securities, one produced
10y the corporations themselves--cile
heavy increase of capital stock and The
immense addition to their bonded
debts? According to The Railroad Ca
zette the new issue Of stocks and bonds
by the railroads during the past year
amounted to over two and a half billion
The Baltimore Sun makes the
following editorial comment On The
Railroad Gazette's statement:
The Railroad Gazette presents a
striking statement of the new railroad
capital authorized during the past
year, together with the large new is
Of stock OF convertible bonds pre-
authorized, but not new issues
Of other securities previously author
lied. The output of new capital is re-
markablc for ;lc small proportion of
mortgage bonds. The preference Of
tends tOWard stock, or bonds
convertible into stock, with the idea
it is desirable to have a security |
which viii: give an opportunity to share
n the probable increase in value of the
properly which it covers The
Wabash and the Southern railway are |
exceptions, each having provided for
q n issue of $500, 10000 Of 4 per cent.
bonds. to be issued from time to time
as needed for new acquisitions, or in
to retire maturing underlying
tNJ0GC TL10 Nfo to-. -~,-
securities in The GaZette's list aggre-
gates $2.697.402.205. Where is this
.wo and one-half billions Of capital to
from" In view Of the high in
crest rates now prevailing, a serious
problem Is presented to financiers.
Among the most remarkable bills
or control Of railroads ever Introduce
ID in a legislature is the one NOW
'ending in our legislature. Surely the
intended it as a joke. 1t
'rovides that railroads and other pub-
&c service corporations shall be allowed
o declare only six per cent dividends
.nnually on the actual value Of the
property Of the corporation necessary
U colluuCI us business, this V~aluItiGII
o be assessed by the corporation com
The corporation shall be per
to hold in reserve a fund equa
0 ten per cent. On the value OF it
property, all additional earnings tt
Q paid into the state treasury for The
Sc OF h state. Also the corporation
commission is empowered to fix the
of the officers of such corpora
ons. The bill was referred to the COM
littee on public service corporations
f curse, it will be reported u~nfavcr.
bly, if reported at all: but the fact
lat a member of the legislature .n-
'oduced such a bill shows to what ex-
eme has gone the feeling Of hostility