The Denison review. [volume] (Denison, Iowa) 1867-current, 1907-06-05

money instead spending it in improvements and in
legitimate corporate purposes; and any acting in
such fashion should be held criminal accountability
1t should be declared contrary public policy hence
forth to allow railroads to devote their capital to
thing but the transportation business certainly to
the hazards of speculation.
No Stock Jobbing.
For the very reason that we desire to favor the
honest railroad manager, should seek discourage
the activities of the whose only with rail-
roads IS to manipulate their stocks The business of
railroad organization and management should be kept
entirely distinct from investment brokerage business
especially of the speculative type and the credit and
property of the corporation should be devoted to the
tension and betermen of its railroads. and de-
velopment of the country naturally tributary to the
lines.
Railroads should not be prohibited from acquiring
connecting lines. by acquiring stocks bonds other
securities of such lines but it is already we'll settled
contrary to public policy to allow railroads to ac-
euire control parallel competing lines
portation. Subject to first giving to the government
the power of supervision and control which have
advocated above the law should be amended SO that
railroads may be permitted and encouraged to make
traffic agreements when these in the interest of the
general public we'll as of the railroad corporations
making them These agreements should of course be
made public in the mnutest DETAIL and should be sub
ect to securing the previous of the interstate
commerce commission.
mere Progressive Legislation.
The movement to regulate railways by law has come
to stay. The people of this country have made up
their minds-and wisely made up their minds to
exercise closer control all kinds of public
vice corporations including railways. Every honestly
managed railway will gain and not lose by the policy.
The men anxious to manipulate stocks than to
make the of their roads efficient and honest
are the only ones who have to oppose it.
The rights Of innocent investors should not be jeop-
arded by legislation or executive action sanction
legislation which would fall heavily them. instead
of the original wrongdoers beneciaries of the
wrong.
There must be such rigid laws will prevent the
development Of the country and such development
only be had if investors offered ample reward for
the risk they take.
Roads Worth $13 600, 900, 900.
There has been much wild talk as to the extent of
the overcapitaizaton of railroads. The census
reports the commercial value of the railroads Of
the country together with the reports made the in
terstate commission by the railroads their
cost of construction. tend to show that whole the
railroad property of the country is worth much
the securities representing it, and that in the consen
Of opinion of investors the total of stock and bonds
is greater than their total face value notwithstanding
the water" that has been injected in particular
places The huge value of terminals the immense ex-
pendures in recent in double tracking improv-
ing grades roadbeds and structures have brought the
total investments to point where the opinion that
the real value is greater than the face value is pro-
| badly true. SIT
= No general statement such as this can be accepted
as having more than general value; there are many
exceptions: but the evidence ample that the
great of railroad securities upon safe
solid foundations if they fail in any degree to
mand complete public confidence it is because isolated
instances of unconsconabe stockwatering and kindred
ofenses suspicion which naturally extends to
all other corporate securities long similar practices
possible and the tendency them is un-
restrained by law
While there have been many instances of gross and
fragrant stock initiation. and while. of course there
remain of overcapitazaton. yet when the
statistics of the weaker roads, the overcaptazed roads,
combined with those Of the stronger roads, and
sidered in the aggregate. in my judgment they will
be found to impair the wholesome financial standing
and position Of the railroads whole: and while
those railway and managers who have enriched
themselves by loading their properties with securities
representing little real value strongest
condemnation. the other hand hearty commend
alton is due the and manage representing
believe the large maoritywho have year after year
worked Faithfully patiently and honestly in building
up great system of railways which have knitted
together in close commercial and social intercourse
| widely removed sections of the county and stand
second only to the great business of agriculture itself
in contribution to national growth and development
Physical Valuation.
Ample provision should be made by congress to en-
i able the interstate commission, by the
ploymen of sufficient force of experts. to undertake
the physical valuation of each and any road in the
country whenever and in the opinion of the
i commission such valuation of any road would be of
i value to the commission in its work.
At the outset let it be understood that physical val
uaon is no panacea it is no sufficient measurement
i of rate but it will be ultimately needed
sental instrument in administrative supervision. It
i will be of use to the commission in connection with
fbod