Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1907-06-30

eihciency in accomp lishing the prac-3
tical results for which 1t Is being
urged The expense it would entail
on the government would be unwise,
as all the elements constituting the
principle OF fair and equitable rates
can be had through other sources Of
Information at the governments s.
command--which will be reliable
while the valuation theory will not.
s1The limitation of future security
issues in the most radical Of all
platforms meets my views. / believe
that the capitalization of the rail-
roads should be directly under fed
eral law, which would provide fed
.eral authority TO construct and OPP
crate a railroad, thepurpose Of which
is to engage in interstate traffic
either over its own rails or through;
connecting lines. Such legislation
should be made with the fact clearly
in mind that in some sections of this
country there are large areas that
heed railroads, and that they cannot
get the railroads unless the builders
are allowed to make profit, or to
see the chance Of profits, on the build
ing. The law should, however, make
it impossible, to gain these profits
more than once; and the require
ments; Of railroads for new capital for
improvement, equipment and devel-
opment of the property, and the
country served, should be placed I'M
der the supervision of the interstate
commerce commission, with author
ity only to authorize such increase
of capital as the property needs fully
to take care of its requirements.
There should be no mystery in
the railroad business. think that
our accounts should be subject to in.
spection by the government, as open
~ and as freely as the accounts of a
national bank are now subject to the
inspection of the examiners; but all
information pertaining to the rail-
roads business should be protected
against improper use. Such pub
Lefty will be found the ultimate safe
guard Of the laws looking toward
fair rates and equitable dealings, and
will, at the same time, afford to the.
investor another proper test of value;
for the securities he buys crowns.
MA Il do not believe that railroad
pools should be legalized, but do
believe that traffic associations be-
tween railroads should be. allowed.
Suppose, for instance that two rail-.
roads can reach all the lumber trafics
Of the states of Texas and Washing
ton. They might form a pool with
certain connecting lines northward
and eastward, whereby those connect
ing lines should receive all this lum-
Der for transportation beyond the
northern and eastern termini Of the
two lines. A pool is a closed associa-
ton. A traffic association, on the
other hand, is open, and all the con-
Meeting lines are allowed to partici-
pate. The federal government, by
endorsing a pool, would give an adj
vantage to few Of the stronger
lines to the detriment Of others not
parties to the pool. By 1egalizing the
traffic association, however, the gov
eminent would be legislating for the
whole, rather than for the part. This
its the true function Of government.
y II do not believe that railroads
should enter into politics, and I look
confidently for the time when rail-
roads will not be forced to go to a
state or federal capital to save them
selves from dangerous legislation.
That time will come when the peo-
pie and the railroads bring to the
settlement OF their differences the
same common sense that they bring
to the settlement of their private dis
agreements.
The one and one,half million en-
p1oyees of the railroads and the
stockholders are closely associated
and their interests are identical.
You cannot iniure one without affect
ing the other. There is total stock
issue on railroads Of about Sc, $780,
OO0, 900, of which amount about 81
$50, OOO, 900 is dividend-paying stock,
and $500 ,OOO, 900 is non-diyidend.
paying stock; The stockhol ders re
Iceive annually about $24O,000,000
| as dividends, which is 5.78 per cent
on the total diyidend-paying stock
and but 80 per cent on the total
lstock issue Of the railroads; while
the employees receive annually, II
monthly installments. $840,000,000
which is equal to dividend Of III
per cent on the total railroad stock