The Cairo bulletin., 1907-03-04
OENOUNCES HIS PROBE
Concluded from First Page,

vent a repetition Of such financial
manipulation in raircad stocks and
bonds as has been revealed in the in
terstate commerce commissions in.
YES igation of T.. II. Hartman man.
agement Of the Chicago and Alton
railroad Governor Deneen will have
introduced in the legislature this
week a bill giving the railroad and
warehouse commission supervision
and control Of the capitalization of
railroads in Illinois.
Governor Deneen and Attorney Gen
eral Stead aye taking up the questions
involved in the testimony given be.
fore the commission in New York with
a view of ascertaining if any action Is
required in connection with the issue
Of S32000.000 bonds, which is declared
void by Commi sioner Harlan's inter
probation Of tha Illinois consttc ton.
II Is no. probale that any action
viii be taken in this case, the securi.
ties by this time being in possession
OF Innocent purchasers. This develop
/ ment only emphasized a condition
which has besn we'll known To the
state authorities and il is becauee Of
1 The financial operations in connection
with the Chicago and Alton that the
state administration wishes TO obtain
/ a law which will grant authority 10
control the capitalization of railroads
and keep IT within bounds
Attorney W, II Boys Of Streator,
chairman of the railroad and ware.
hous commission, has drawn this bin
and il will be ready for Introduction
probably in the senate by Senator
Gardner next week
Atoms Enormous Burden.
Railroad reports on file in the rail
road department show the necessity
fer such | gislation as illustrated by,
the case Of the Chicago and Alton
Reports of this company show that
its capitalization is 1929 24S per mile
as compared with $72.45l for the Hi
nois Central. s35,920 for the Chicago
and Northwestern $4t.196 for the
iNbNN l9tRllAls anu HD-sbtt ibl tllt VII
cago, Milwaukee and St Paul.
The only thing that resembles the
Chicago and Alton capitalization. as
reported to the railroad board, is that
on the Cincinnati, Hamilton and Day
ton which is $21L299 per mile
The Chicago and Alton capital stock
Is reported at $42 1880 and its bond.
ed Indebtedness is divided into three
classifications, $G7350 600 in mort. !
gage bonds. $5.000000 in miscsIlanc-
Gus, and $3.01G 9lS in equipment trust
bonds total IF bonds and stock Of !
Silt 546,21S or sl29,24S per mile
Governor Deneen's Warning.
In his biennial message Governor /
Deneen said,
Some measure should be enacted |
by the legislature in reference to the |
practice of increasing capital stock |
and bonded and other Indebtedness pi I
railroads without regard to the actual |
value of the read | believe thar the
legislation along these lines would
tend TO prevent the watering of stock
81 fdllf0ad companies ana also aDOl-
ISL tn incideDtal evils 10 investors
ana the general public which grow out
If such practices.
In spite of the Illustrations which
hcw the need for such legislation the |
ill is likely to have a hard time of It
considerable legislation af
citing railroads is pending no rail
Dad measure is having an easy path
ut out for it and this municipalities :
ion bin 81 no apt to find any fewer
Obstacles in its way.
II will provide that no issue Of stock
# bonds shall be allowed until prop
r. showing has been made to the rail.
Dad commission of the nee ssity for
UGH an issue. and that il does not ,
Xceed a reasonable cost of the inn A.,
rOyement o be made +