The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1907-06-06

y, ssssiAuiy hOt 10 the nazaruS OF spec
For the very reason that we desire
20 favor the honest railroad manager,
we should seek to discourage the ac-
uvities OF the man whose only con-
Germ with railroads Is to manipulate
their stocks. The business of railroad
organization and management should
De kept entirely distinct from invest
ment or brokerage business, especially
or the speculative type, and the credit
ana property Of the corporation should
De devoted to the extension and bet
terment OF its railroads, and to the
development Of the country naturally
tributary to the lines.
Contrary to Public Policy.
These principles are fundamental
railroads should not be prohibited
from acquiring connecting lines, by
acquiring stocks. bonds or other Sc
curities OF such lines; but 1t Is already
Wen settled as contrary to public pol
Icy TO allow railroads to acquire Con-
trol over parallel and competing lines
OF transportation. Subject to first Civ
ing to the government the power Of
supervision and control which I have
advocated above, the law should be
amended so that railroads may be per-
mltted and encouraged to make traffic
agreements when these are in the in
OF the railroad corporations making
them. These agreements should OF
course be made public in the minutest
detail, and should be subject to secur-
ing the previous assent of the Inter-
state Commerce commission.
The movement to regulate railways
by law has come to stay. The people
or this country have made up their
minds-and wisely made up their
mlnds--to exercise closer control
over all kinds of public-servico cor
porations, including railways. ...
We ask for such laws as in their
essence now obtain In the staid old
commonwealth OF Massachusetts,; such
laws as now obtain in England. The
purpose of those of us who so reso-
lutely believe In the new policy, In its
thoroughly carrying out and in its pro-
gresslve development, Is in no sense
punitive or vindictive.
Can Trust Supreme Court.
The oupreme court could be trusted
in any event to see that there should
be nothing done under the guise Of reg
ulating roads to destroy property with
out just compensation or without due
process of law
AS matter of course we shall pun-
ish any criminal whom we can convict
under the law; but we have no inten-
and the guilty few by an ill-judged and
sweeping scheme of vengeance. Our
aim is primarily to prevent these abuses
in the future. Wherever evil doers cali
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 jeopardized by legislation
or executive action; we sanction no leg
islation which would fall heavily on
them, instead of on the original wrong
doers or beneficiaries 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 un-
reasonable restrictions being placed
upon the issuance of stocks and bonds,
for such would simply hamper the
growth OF the United States for a
railroad must ultimately stand on it's
credit.
AGAINST Security Imitation.
There should be lodged in the govern
ment power to exercise a jealous care
against the imitation of securities and
all evils that come in it's train.
We favor the railway manager who
keeps in close touch with the people
along his line rather than in close touch
with the speculative market; who oper-
ates his line with view to the adVan-
tage he can legitimately get out of his
railway as permanent Investment by
giving a fair return to the stookhold-
ers and to. the public good service with
reasonable rates; Who does not operate
his road with view to the temporary
speculative advantage which will follow
capitaliZing an uncertain future and
unloading the securities on the public.
There has been much wild talk as to
the extent of the decentralization of
our railroads. The census reports on
the commercial value of the railroads
of the country, together with the re-
ports made to the Interstate Commerce
u!sslon by the railroads on their
cost Ot construction, tend to show that
as O whole the railroad property of the
country Is worth as much as the Sc
curities representing 1t, and that in the
consensus OF opinion of investors the
tote' value of stocks and bonds is
greater than their total face value, not
withstanding the water" that has been
injected in particular places. The huge
value of terminals, the immense expen-
ditures in recent years in double track
ing, improving grades, roadbeds, and
structures, have brought the total in
vestments to point where the opinion
that the real value Is greater than the
face value is probably true. No general
statement such as this can be accepted
as having more than a general value;
there are many exceptions; but the evil
dence seems ample that the great mass
OF our railroad securities rest upon
safe and solid foundations; If they fail
in any degree to command complete
public confidence, it is because isolated
instances Of unconscionable stock wa
tering and kindred offenses arouse sus-
picion, which naturally extends to all
other corporate securities so long as
similar practices are possible and the
tendency to resort to them Is unre-
strained by law.
For Physical Valuation.
Ample provision should be made by
congress to enable the Interstate Conn
merce commission, by the employment
of sufficient force of experts, to un-
dertake the physical valuation of each
end any road In the country, whenever
and so soon as in the opinion of the
commission such a valuation Of any
road would be of value to the COM
mission in its work. There are un-
doubtedly some roads as to which II
would be an advantage, from the stand
point of the business of the commits
sion, to have such physical valuation
as soon as possible.
How important physical valuation
,,roIra ono Of tho 70 cforS 10 o.zIz4