The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-05-31

A
2 ful observance of its wise provisions
We seek nothing revolutionary. W.
ask for such laws as in their essenct
now obtain in the staid old Common
} wealth of Massachusetts; such laws a!
now obtain in England. The purpose OF
those of US who so resolutely believe il
the new policy, in its thorough carry
| ing out and in its progressive develop
} ment, is in no sense punitive or vim
: dictive. We would be the first to pro-
{ test against any form of confiscatioI
of property, and whether we protested
or not, L may add that the supreme
. court could be trusted in any event tC
see that there should be nothing done
under the guise of regulating roads to
destroy property without just compen-
sation or without due process of law.
Punishment for Criminals.
AS a matter of course we shall pun
ish any criminal whom we can con-
Wet under the law; but we have no
intention of confounding the innocent
many and the guilty few by any ill
judged and sweeping scheme of
| vengeance. Our aim is primarily to
| prevent these abuses in the future.
Wherever evil doors can be, they shall
be, brought to Justice; and no criminal,
high or low, whom We can reach will
receive immunity. But the rights of
innocent investors should not be jeop-
/ arded by legislation or executive &C
| ton; We sanction no legislation which
| would fall heavily on them, instead of
| on the original wrongdoers or benefi-
| Charles of the wrong.
There must be no such rigid laws as
| will prevent the development of the
| country, and such development can
only be had if investors are offered an
ample reward for the risk they take.
We would be the first to oppose any
unreasonable restrictions being placed
upon the issuance of stocks and bonds,
| for such would simply hamper the
growth of the United States; for
| railroad. must ultimately stand on its
i or l,
demanding that there be lodged in the
government power to exercise a jeal-
Gus care against the imitation of securi-
ties, and all the evils that come in it's
train. The man who builds a great
railway and those who invest in it
render a great public service; for ade-
quate transportation ia cilities are a vi
tai necessity to the country. We favor
full and ample return to such men;
but we do not favor a policy of ex-
plotting the many for the benefit of
the few. We favor the railway man
who operates his railway upon a
straightforward and open business ba-
sis, from the standpoint of permanent
investment, and who has an interest
in its future; we are against only the
man who cares nothing for the proper
ty after his speculative deal in it's Sc
curitfes has been closed. We favor the
railway manager who keeps in close
touch with the people along his line
rather than in close touch with the
speculative VINO operates MS
line with a view to the advantage he |
can legitimately get out of his rail- |
way as a permanent investment by CIV |
ing a fair return to the stockholders
and to the public good service with |
reasonable rates; who does not operate |
his road with q view to the temporary
speculative advantage which will fol- |
low capitaliZing an uncertain future |
and unloading the securities on the |
public We wish to make 1t to the in !
terest of the investor to put his money
into the honest development of the !
railroads. and therefore we wish to dis |
criminate against the man who, while
enriching himself, lays upon the future
owners and patrons of the road and
above all upon the honest men whose
duty it may become to operate the
road, burden of additional debt with /
out adding cOrreSpOn dinghy to its ac-
tual worth. Much is said about the
inability of railway presidents to agree
among themselves as to what policy
should be advocated and what plans
in the effort to work out the
problems which now present them
selves. In so far as the law is concern
ed, all ask of them is a Willingness to |
move along the lines indicated by those
who are charged with administering |
it. Our policy is built upon experience
and our primary purpose is to insure
the future against the mistakes and
delinQuencies of the past.
Much Wild Talk.
There has been much wild talk as
to the extent of the apitalization
of our railroads. The census reports
on the commercial value of the rail-
roads of the country, together with the
reports made to the Interstate Com
merce com omission by the railroads on
their cost of construction, tend to show
that as a whole the railroad property
Of the country is worth as much as the
securities representing it, and that in
the consensus of opinion of investors
II, fol xN,,I-
greater than their total face value not
nding the water that has
been injected in particular places. The
huge value of terminals the immense |
expenditures in recent years in double
tracking, improving grades, rOadbedS, |
and structures. have brought the total
Investments to point where the opin-
on that the real value is greater than
he face value is pro bably true. No
general statement such as this can be
accepted as having more than a gen. !
eral value; there are many exec options;
out the evidence seems ample that the
great mass of our railroad securities :
rest upon safe and solid foundations; '
f they fail in any degree to command J
complete public confidence, it is be-
,ause isolated instances of unconscion-
lble stock-watering and kindred Of l
'enses arouse suspicion. which natural :
V extends to all other corporate Sc
,urities so long as similar practices are
possible and the tendency to resort to 1
mem is unreSIralned by law. Wh1le !
here have been many instances of
gross and fragrant stock imitation, and
While. of course. there remain cases of
,verca pitaliza ton, yet when the statis- l
les of the weaker roads. the overcapi- I
allied roads, are combined with those ;
IF the stronger roads, and considered l
n the aggregate. in my judgment they I
will not be found to impair the whole I
ome financial standing and position of /
he railroads as whole; and while q
hose railway owners and manag gers
Who have enriched themselves by load ;