The Lamar register. [volume] (Lamar, Colo.) 1889-1952, 1910-07-13

The railroads Of the United States
are awaiting with grave concern
the impending investigation the
government will make into their
capitalization
Not that they expect a finding
that they are overcapitalized. but
they anticipate developments which
will show indefensible methods of
financing. of Issues Of millions Of
stock and liabilities against which
NO property was acquired. and as
tonishing acts on the part of man
ayers designed to extend their
power and to give profit to them
selves and to those Immediately sur
rounding them. A state of things
70 evil will be disclosed. 1t is claim
ed that congress will be forced to
pass without delay a measure pro-
viding for effective control of fu-
ture issues OF securities. So far
~ the legislation is concerned. It
will be welcomed by the established
roads. What they object to. how
ever, are the revelations certain
10 be made in connection with poll
ciss they pursued m order to ac-
Quire control of many of the lines
they have nodded intotheir systems.
II the Investigation be as thor
ough as the situation calls for 1t
will appear that the display of
high finance" In connection with
the Chicago & Alton railroad was
By no means an isolated case. The
aame methods were observed with
respect To- many other railroads. 1t
will be claimed. however. that
these methods are now obsolete and
have been 80 for ten years. low
Ing 70 . high degree Of conscien-
tousnsas among financiers."
It y doubtful II this be true.
There exists today the same desire
that snimated the late e. H. Harri-
nan to dominate the United States
through railroad systems: to ex-
Asnd control wherever possible
In short, to gather In . few hands
he tremendous power Of determin-
ing the destinies OF the American
people.
Il takes millions to swing con-
troll Of railroad property nowadays.
Hartman obtained them by issuing
stocks and other liabilities upon
the unss he controlled. Not a dol
lar Asrived from this action was
sDsnt for improvements upon the
lines which assumed the new In
deotsdnsss. But the people served
By thoss lines were compelled to
pay heavier charges In order to en-
abls the properties to meet the in
tersst on their indebtedness and
disburse dividends.
Thus the proposed investigation
viii demonstrate the necessity of
the control of future additions to
three great advantages to the peo-
railroad capitalization to insure
pie. They are:
Prevention Of the passage Of rail-
road properties into q few hands
through baleful methods of high
finance.
Prevention of suppression of com.
petition through the acquisition of
control Of the competing lines by
a single system.
Prevention of higher rates
which lines INDUCING in indefens-
ible financing would have to i'm
pose In order to meet the obligar
lions the watering of stock creates.
The Investigation will be made
by commission which will be ap-
pointed By the president under the
provisions Of the Mann law enact
ed during the closing days of the
last session. The president - un-
derstood to have fixed tentatively
upon five men who will be desig-
mated to conduct the inquiry and
IS formulating Instructions under
which they will act. The import
tnce of their lAbors will be realiz-
cd when Il u known that they will
slbject 70 scrutiny . total capital
i=ation Of almost S7o.oo0.000.ooO.
Of which nearly s13.0oo.o00.000 are
distributed among the people.