The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1907-05-31

regulate these abuses in the
future. Wherever ill-doers 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 jeoparded by leg
islation or executive action: We sane
ton no legislation which would fall
heavily upon them, instead OF on the
original whongdoers 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 II investors are Of
fered an ample reward, for the FISK
they take. We should be the first to
oppose any unreasonable restrictions
being placed upon the issuance OF
stocks and bonds. for such would SIM
ply hamper the growth of the United
States, for a railroad must ultimately
stand on its credit. But this does not
prevent our demanding that there oe
lodged in the government power 10
exercise a Jealous care against the
imitation of securities and all the evils
that come in its train. The man who
builds a great railway and those who
invest in 1t render a great pubic
service, for adequate transportation
facilities are vital necessity to the
country. We favor full and ample
return to such men. but We do not ia
yor a policy of exploiting the many
for the benefit of the few. We favor
the railway man who operates his
railway upon straightforward and
open business basis, from the stand
point OF permanent investment, and
who has an interest in its future; we
are against only the man who cares
nothing for the property after his
speculative deal in its securities has
been closed. We favor the railway
manager who keeps in close touch
with the people along his line. rath-
err than in close touch with the spec
ulative market; who operates his line
with view to the advantage ne can
legitimately get out OF his railway
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 OPP
crate his road with view to the tenn
porary speculative advantage which
will follow capitalizating an uncer-
tain future and unloading the secur-
tiles on the public. We wish to make
it to the interest of the investor to
put his money into the honest devel-
opment of the railroads, and there
fore we wish to discriminate against
the man who, while enriching himself,
lays upon the future owners and pa
irons of the road and above all upon
the honest men whose duty 1t may
become to operate the road, burden
of additional debt without adding cor
respondingly to its actual worth. Much
is said about the inability of railway
as to what policy should be advocated
and what plans followed in the effort
to work out the problems which now
present themselves. In so far as
the law is concerned. all ask of
them is willingness to comply fully
with its spirit and readiness to move
along the lines indicated by those
who are charged with administering
it. Our policy is built upon exper-
fence, and our primary effort is to
insure the future against the mistakes
and deliquincies of the past.
There has been much wild talk as
to the extent of the overcapitalization
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
commerce commission by the rail-
roads on their cost of construction,
tend to show that as whole the
NS h. L.,
worth as much as the securities rep
resenting it, and that in the consen-
sus OF opinion of investors the total
value of stock and bonds is greater
than their total face value, notwith-
standing the water" that has been
injected III particular places. The
huge value of terminals, the immense
expenditures in recent years in dou-
BILE tracking, improved grades, road
beds and structures have brought the
total investments to point where
the opinion that the real value is
true. No general statement such as
this can be accepted as having more
than general value; there are many
exceptions. but the evidence seems
ample that the great mass of our
railroad securities rest upon safe and
solid foundations; If they fail in any
degree to command public confidence
it is because isolated instances of
uncOnscionable stock-watering and
kindred offenses arouse suspicion,
which naturally extends to all other
corporate securities SO long as SIM
liar practices are possible and the
tendency to resort to them is unre-
strained by law. While there have
been many instances of gross and flag
rant stock initiation, and while. of
course. there remain cases of over
capitalization, yet when the statistics
OF the weaker roads, the overcapital-
lied roads, are combined with those
of the stronger roads, and considered
in the aggregate, in my judgment they
will not be found to impair the whole
some financial standing and position
of the railroads as whole; and while
those railway owners and managers
who have enriched themselves by load
ing their properties with securities
representing little or no real value,
deserve our strongest condemnation;
on the other hand, our hearty con-
demnation is due those owners and
managers-representin I believe. the
large majority-who have year after
year worked faithfully, patiently and
honestly in building up our great sys-
tenn of railways. which have knitted
together in close commercial and So
cial intercourse widely removed sec
lions of the country and stand second
only to the great business of agricul-
ture itself in contribution to national
growth and deVp1Cnmant