The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-01-10
HOTEL CAN, BUT
depot" CANNOT
transportation" Wants to
Know Why Real Estate Can
Legally $50 Up"
SAYS LAW PROHIBITS
RAILROADS TO Do SO
President Taft's Recommends
tlons to Congress Said to
Be Unjust.

I'oitor Ihe Tribune-Presdent Taft's
recommendations to congress concerning
'"e interstate commerce commission arc
matter or universal Comment In Salt
Lake railroad circles. One thing I notice
'he president recommends is that the
railroads cannot Issue any stocks or
oonds without the consent of the COM
M t,ilisSloh. Also that no securities shall
setusi oe issued n unless at practically par for
services. which is practically the same
|h1ng as money in this case
- Tnis would be all wen enough II the
reil5oads were allowed TO pay any rate
OF dividend, say 100 per cent each wear,
or even 5000 per cent, as some banks do
ou1 II Is pretty well understood that
per cent Al least that is the gist of
tue ciaifns made everywhere just now.
Says Real Estate Is ''Watered.
Al FIRST glance this might seem lust
enough TO. one who looked no farther
out let US look at Salt Lake real estate
suppose a man puts ,Sl,OOO.o0O Into Salt
LAKE LAKE real estate and IL rents net for
sGGO'VUO year. This Is 6 per cent on
But every one in Salt Lake wants
real estate TO "go up Now the value
Of Salt Lake real estate depends enc en- en-
aireiy adtIyy, on what Il will rent for. The
dctual iand Is the same today as It
was When the Indians were here and
II would rent for nothing hence was
nn,tlh worth nothing To-day piece of ground
is worth $1,000. 600, We'll and good.
Now let the popula ton Of the United
states Increase and with it the popua-
!r men. and offer 100000 a year rent
Tor that piece of Salt Lake real estate
suppose the law. or public opinion. for
per cent dividend on his real estate. at
valuation of $1,000. 900? What is his
course? This:
Treat All Property Alike.
The owner OF the Salt Lake real estate
must must either issue 100000 more stock,
cause no money Is to be paid in. and
declare 6 per cent dividends on a valua-
zion of 81 500 600 or i the law says tha,
lie lie cannot get over $4,000 year rent
10 pay him 100000. then the law Is prac-
ucally robb!ng him Of $500 600
This Is practically what President Taft
would have the law do TO the railroads
today. II a man puts his money into
salt Lake real estate. he may have IT
go up or, or be w %wateredh 1,eis as much as
Salt Lake railroad II cannot go up"
Now here is another thing. Salt Lake
water" that is. pay higher rent or
dividends on the same valuation unless
the Salt Lake railroad goes up in value
cent more cash capital to either. Rent
is the dividend on real estate. and divi-
iends are the rent on railroads, Two
names for exactly the same thing.
What's in a Name?
When a man takes A piece of ground
and some wood. iron and stone and
makes building he can make II pay
what g. Will but when ne takes the
same ground. the same iron. the same
stone and makes railroad he cannot
make IT pay over or per cent The
result must be that men will not put
thelr money into railroads,
or make the case closer, exactly alike
in everything except the name Take
block of Salt Lake real estate worth
$500, 900 and put. up 5000, 600 building
total value 81 .000. 600. Incorporate IT.
Call IL a depot and the law forbids rent
ing It for over 100000 a year. Call it d
hotel and IL can he rented Tor $500. 900
/ year ten times much
AS depot to rent for $500. 900 year
President Taft recommends TO congress
.hat 100000 more in actual cash must
ne spent on IT, but as a hotel not one
ent more Is required 70 be invested.
rs a hotel the company can issue sl0.-
lOn 900 In stock, 50 600 900 OF IT water -
md pay per cent net dividends on an
Investment OF only sl,Oo0.000. but as q
!epot the company cannot. Why?
TRANSPORTATION.