The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1910-02-09


Surplus from operations Of all the
railroads in the United States for 1907
exceeded the net income for 1897 by
$60.065,7s5
Stock paying dividends increased
from $1,603,549.978 In 1897 to $685.
756,2O3 in 1907, an increase Of $685.
206,225.
The rate of dividend on stock In
creased from 5.43 per cent. in 1897 to
6.23 per cent. in 1907. an increase Of
~ per cent.
The total amount of capital stock Of
the railroads of the United States out.
standing in 1907 was $7,356. 1861 ,691
The amount necessary to pay six per
cent. annual dividend on said capital
stock is 441,411, FOL .46. For 1907 their
actual net income, after paying oper-
ating expenses, interest on bonds and
other fixed charges, was $449,461, 1888,
or $8,049, 486.54 more than necessary
to pay six per cent. dividends on all
Of the said capital stock, including
overcapitalization.
After paying an average of 6.23 per
cent dividend, amounting to $308,0S8,-
627 on the capital stock paying divi.
dends in 1907, there still remained a
surplus of $141,323,264 which was
available for additional dividends or
possible increased expenses.
1t is evident that the present scale
of freight rates is producing more
than sufficient to provide reasonable
returns upon legitimate railway stocks
and to attract attention to railway Sc
curities as desirable investments
The figures support the contention
of the Progressive Republican sena.
tors that no further increases In rates
should be permitted unless the rail-
roads prove they are entitled to them,
and that stock and bond issue should
be made absolutely subject to the ap-
proval of the Interstate Commerce
commission, so that no additional cap
italization shall be permitted upon
surplus earnings or unearned in
creases in value Of the physical prop
critics of the railroads.
Proqressives' Stand Justified.
Progressive senators point to the
weaknesses of the postal savings bank
bill as submitted with the administra.
TONS 20. H." the Wickersham rail-
road rate bill which does not provide
the machinery to determine reasona-
BILE rates, the Ballinger conservation
bills which have been determined al
ready not to be sufficiently strong to
safeguard the public interest, as just
iflcation for their refusal to pledge
their support to these measures In ad-
vance of their introduction and be-
for opportunity had been given them
to analyze the provisions Of the bills.
It is the first time in the history of
our government that all the important
administration measures were drawn
by the cabinet officers. They have
signally and without exception failed
in the work assigned them. Congress
will not accept these cabinet framed
measures without subjecting them to
close scrutiny and analysis. The Pro-
gressives took this ground from the
first and they have been justified by
the results of investigation Of few
of the bills submitted.
overtures for Peace.
Such is their fear for their own po-
litical hides that the organization men
in the House are now in a condition
where they desire to sue for peace and
have actually made overtures to the
Independent Republicans.
These peace plans of the organiza.
ton only contemplate the elimination
of the personality of Cannon. The
men making them believe that if they
can assure the elimination of Mr.. Can
non, the Independents will cease to
continue the warfare.
| It is understood that the overtures
were made to Representative Gardner
of Massachusetts and that counter
proposition was made on behalf of the
Independent Republicans. This coun'
ter proposition, it is claimed, con
tanned these conditions:
Cannon must declare he must not
be candidate for reelection to the
speakership.
The house must pass resolution
declaring the speaker ineligible tc
membership on the committee or
rules.
The house must amend the rules
so as to provide that hereafter al
committees shall be chosen by the
house and the appointing powers
shall be taken away absolutely from
the speaker.
Means Surrender on Rules.
II the organization accedes to tn
conditions laid down by the 1ndepend
ents, 1t will mean a complete surren
der so far as the contest for tn
amendment of the rules Is concerned
The corollary to this amendment vii
be the appointment by the house Of
non partisan commission for the II
vestigat!on of scheme OF parliamer
tary reform which will completely RI
lieve the house of representative
from system domination.
It is known that the Organization
} members of the house have bee