The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-11-12
OR BUNCoMBE.

~
According to Raymond, the politica
correspondent of the Chicago Tribune
President-elect Taft has a well-definec
railroad policy and is going to put {
stop to the evils of watered stocks anC
the unloading of railroad securitie.
upon an unsuspecting public without
there being any real value behind
them" Says RAYMOND r 80
Every railroad in the United States to
day. almost without exception. is Dur
dened by enormous fixed charges which
are entirely out of proportion to the ac-
tual cost OF the line itself. In nine cases
out OF ten the issue of stocks and bonds
is In the hands OF the men who happen
TO be in control of the road and is moi
who are the holders of the stocks and
bonds. EXOrbitant rates for freight and
passengers have been m aintained in many
cases. not because the money went into
the pockets OF the railroad financiers
themselves, but because these excessive
rates We're absolutely necessary to pay
dividends and interest upon stocks and
bonds held in every case by the innocent
public. 49, -
The new policy which is 70 be put
into operation under the Taft admins
tration involves the scrutiny of the Sc
curity offered in the case of each new
issue, the services of the interstate
commerce commission being called into
requisition. II the members OF the
commission are not satisfied with the
actual value of the property not dol
lar of new stocks or bonds Will be a.
lowed to issue Another feature of the
~, Sc ,.-oS~,-o,,, ooro,ro1d Il, Tho v,,p
posedly inspired article. follows:
There is another feature of the plan
which is almost more wide reaching. It
would be unfair and disastrous to inter
fere with existing securities or to insist
that rates shall be independent of the
fixed charges upon those securities. IL
is fair. however. to put a stop to the
making of rates based upon the neces-
si;y of paying interest upon fraudulent
securities This is exactly what Mr.. Taft
proposes TO do. In the policy which he
will outline sooner or later ii will be made
clear that while there will be no dis
turbance of present rates or of present
securities II will be proposed for the fu-
ture that no rates shall be imposed upon
the public merely to pay charges upon
wauered stocks.
At the present time the people get the
worst OF it, both coming and going. In
the first place they are bambooZled into
paving for stocks and bonds which are
not represented by any tangible value
and the proceeds of which go into the
pockets OF the financier. and are not used
to build up the property. Then the pub
lie is compelled TO pay excessive rates
10 meet the charges on these securities
Under the new plan the interstate COM
merce commission will be given the right
to say just when and where and how
every railroad security shall be put upon
the market. so that In the future interest
charges will be legitimate an item of
expense as the cost of operation. 1t will
then be an easy matter. comparatively
speaking, TO determine what is a rea-
sonable rate which will enable the rail-
road to pay its operating expenses and
at the same time to return a fair profit
10 the holders of its stocks and bonds.
All of which is very interesting. the
more so as nothing was said about it
during the recent strenuous campaign
by President Roosevelt. Judge Taft or
the great array of calamity howlers
who predicted wreck and ruin in the
ease of Democratic success. 1t is some
months before the new administration
comes into power. Until that time it
s probably just as well not to make
any rash predictions or believe all we
read or hear.