Weekly Arizona journal-miner. [volume] (Prescott, Ariz.) 1903-1908, 1907-06-05

the road il more important by FAR
,nan the physical valuation; ana th'
physical valuation of the roai IN ono
region may have an entirely diicf'u'
relation to the real value 81 ID" ROAD
than ~ another region where 'hc con
d,tions are utterly different. Therefore
the physical valuation can mover b'
more than one of many elements To- h'
considered: but 81 IS one element. ana
At times may be- very important 'I'
mrnt, when taken "a connection WIN
the earning power, franchises, ougin"
cost. character of management iorati"n
aud business possibilities 10 reaching
an estimate on tnc property aud rishr
of corporation ~ q going concern
The effect Of such valuation and sup
crvision of securities can not bee rctro.
active. Existing sccuritirs should be
| tested by the laws III cNistrnc" AT inc
time Of their issue. IN providing
agains, ovcrcaptaliza'ion W. shall
| harm no human being who is honest (;
and We .hall benefit many, for ovcfcnP.
iinlizntion often means an imitation
that invites business panic. 1t always
conceals the true relation Of the proht
earned 10 the capital invested. creating
u burden of interest payments which
may rebound 10 the loss alike of tnc
wage Garner and the general public,
which il concerned IN the rates paid by
shippers; il damages the small investor,
discouragcs thrift, and puts premium
on gambling and business trickcry.
One of the most importan, features
Of the Hepburn act - It's having given
the commission absolute control over
the accounts of railways. tn" commits
sion has lust issued an order To the cf
feet that On July | next all the rail
ways of the country subject TO tao
jurisdiction of the commission must
-tandardizc their accounting methods
and the commission is now organizing
u bureau Of special examiners, who's
, duty IL will lac, among other things
10 see that the books Of the carriers arr
: kept in conformity with the rules lai'
down by the commission. Thus Tia
means are already Mt hand and th
, machinery already created w0ich, whcl
perfected, will put the public IN posi-
ton To know the facts, NJ that tn
small investor can exercise an intclli
= gent judgment when entrustIng hi
money to the promoters OF great rail
way enterprises. We hope as one o
. the chief means for bettcrmcn' of con
+ litions TO secure as complete publici,.
= in the affairs Of railroads as now oil
: tains with regard to national banks.
No state, Of course, can do for tn
), railways what the national government
has already done for the banks, an
y that government snould do somcthin
y analogous for the railways. Nations
J. bank stocks are bought and sold largcl
y ON the certificate Of character whic
the government, as result Of its cl
y aminations and supervision, gives I
them. To give another illustration
from lowa's experience, when the nj
u tional banking law was amended ,
j. allow small banks 10 take out nation.
J. charters, great numbers of the stat
u banks Of that state we're reorgapize
into national institutions. The invcs
u ing public was ready to back vita NJ
limited confidence the institutions q
y which the federal government had 81
q the seal Of its confidence and a,
J. provsi. The railways have not bee
. given this certificate Of character. u
, der the seal Of the national government
Q and therefore many people who inve
u freely in the shares Of banks are =
81 (Continued on Pace oeven.)