Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1908-04-29
BUILD RAILWAYS
WITHOUT CASH
Only Small Amount Paid in on
Capital Stock

y, AN4Ah toiu the hpCctoi county kfau0
jury which investigated the Metro
politan Street Railway company that
not dollar had been paid originally
for 95 per cent OF the stock OF the
railroads OF this country prior TO
1855. All but per cent. he de-
clared. was water. He made this
statement to show the grand jury
how the other railroads compared
with the Metropolitan. which. he said,
had S3h per cent Of It's So, O00. eco
capital stock paid in.
Mr.. Ryan had read his formal
statement about the organisation OF
the Metropolitan from it's inception
and he concluded It with this re-
mark:
That Is In answer to the state
ment that has been made for the
last ave years that the Metropolitan
Street Railway stock is all water"
MIR. Ryan" said Mr.. Jerome. you
have been connected with large
number OF corporate ventures. both
in street railways aud steam rail-
wayB?"
Yes, sir" said Mr.. Ryan.
In response to another question
from Mr., Jerome. Mr.. Ryan said that
az banker he was familiar with the
organization OF many OF the railroads
Of the country. Mr.. Jerome wanted
to know about the percentage OF
water in railroad stock.
''Ninety-five per cent OF the rail.
road stock OF this country never cost
dollar" said Mr., Ryan. who made
some Of the Jurors sit up.
You mean that % per cent OF the
stock OF the railroads OF this country
IL waterg" asked Mr.. Jerome.
"Ninety-five per cent OF the roads
within the last--these great specula-
tive years that we have had--pnt up
stock when II was easy TO raise
money on stocks and bonds. But up
TO 1885, 80 per cent OF all steam rail-
roads and all street railroads and all
industrial corporations OF this coun-
try never put In one dollar on their
stock except little organization ex-
penses that were required for a few
shares Of stock at the beginning"
so your experience is." said Mr..
Jerome. that ss3.is paid in for
every 800 In stock Ii exceptional. +"
Yes. sir" said Mr.. Ryan.
1T being much more cash paid In
than Is customary In other corpora
lions" said Mr.. Jerome.
up to 1873" replied Mr.. Ryan,
there was not a dollar paid In on
st. Paul. Northwestern. Omaha or
any OF these railroads.
III you took the stock OF these
roads rs they stand today" asked Mr..
Jerome. including the roads that
have been reorganlEed and supposed
to have been put on a sound basis
taking them as a whole. both IN
steam raiiroading and surface rail-
roading--would $50 IN cash for every
share OF 500 par--wouid that be a
large percentage OF eash7"
"A large percentage of them--S0
per cent OF them" answered Mr..
Ryan, haven't had anything Not
only that: In the organization that
took place from 1900 up TO 1907.
they assessed stock and gave bonds.
we understand, then" said a
juror. that the roads only cost about
8 per cent Of the capital issue; they
were built with bonds"
They were built with bonds. re-
piled Mr.. Ryan. The Union Pacific
is built with bonds. Il got a land
grant. worth tzSO. 600 ,O0O. from the
government besides"
And Atchison the samef" asked .
juror.
Il was speaking OF the Union Pa.
eise: AtchisOn the same" said Mr
Ryan.