Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-11-29
REBELS GO hDNG VISITOR At SCHOOLS PLANS FOR PARADE
Of
L9ao a.
Precautions mn Ebay Textiles AueA and National Guard
Outbreak Sees AmaanM Presidents lCmmmIm Will
BY TO E
Is ghF Rwubw of Rrhhngrea Will Rwh
the by Sup Tran gr
". P. Hall of Massachusetts
Would Do Away With Them.
SAVING TO RAILROADS
Bay State Expert Testifes Before
Presidential Commission.
ASSISTED BY TWO ASSOCIATES
Describes Methods of Regulating
Transportation-Fixed Selling
Price of Stock.

1t would be good business and economy
for railroad companies to abolish al
grade crossings now protected by flag
men or gates, in the opinion of W. r
Hall. chairman of the Massachusetts
railway commission.
He was a witness before the commits.
sion appointed by the President to in
vestigate legislative control of the issue
of stocks and bonds by railroad corpora
lions.
The carrying charges or interest on the
investment involved in the abolition OF
the grade crossings would, on the whole
he declared, be less than the cost of pro-
tecting the crossings by gatemen or flag
men.
Mr.. Hall was assisted in presenting his
testimony by James F. Jackson, former
chairman Of the Massachusetts, commits.
sion. and Clinton White, present mem
Der.
Regulation Of Stock Issues.
They upheld, i'm general, the provision
OF the present Massachusetts, law regu.
lating the. amount OF securities to be Is
sued by railroad companies in the Bay
state. All agreed that q commission e
|
bonds issued was necessary. and that the
commission must be allowed some discre.
ton.
Chairman Hadley asked If the commits.
sion should be required to determine the
questions involved in new issues by one
Of three possible methods-physical val.
uation, capitalization as a going concern
and earnings as the basis.
Mr.. Hall contended that the commission
should be allowed some discretion as to
which method it would use
In Massachusetts, he said, the law al
lows the commission to employ experts
He thought this would be a good rule to
be followed in national legislation.
The witnesses were opposed to fixing by
statute a definite and specific dividend
upon the new securities to be issued. To
do so. they argued. might prove q check
to the development OF railroad properties.
Mr.. jackson expressed the opinion that
the commission, in allowing the issue of
stocks, should fix definitely the selling
price.
Basis Of Physical Valuation.
The value of a physical valuation of
the properties Of the railroad systems in
this country was discussed at yesterday
afternoons hearing before the commits
sion by Judson G. Clements Of the inter-
state commerce commission.
In answer to questions from members
of the commission. Mr. Clements declared
that it was unsatisfactory to name rates
without knowing the facts as to the cost
Of the railroad properties, and more espe-
cially as to their value. The physical
valuation. he added, will prove useful as
q guide for determining the amount OF
stocks and bonds which q railroad cor
poration is to be allowed to issue.
Mr.. Clements would not, he told the
commission. favor q restriction Of the
railroad management as to it's policy In
expanding the proceeds of a proposed sa lie
of stocks or bonds: would not for in
stance. prohibit the issue of bonds to
electrify q system until 1t is shown that
the venture will prove profitable. But
he favors he said. q restriction that will
prevent an issue Of bonds or stocks In
excess Of the amount actually needed to
carry out the proposed venture, but will
allow an issue sufiicient to carry out the
legitimate purpose in view.
Mr.. Clements declared that the law
regulating the issue Of stocks and bonds
by railroad corporations should be as spe.
cific as possible. He conceded that there
probably would be need for some tribunal
to determine whether or not g. certain
issue would be or was in violation of the
statutes. and that the tribunal must have
some discretion.
AS little as possible, however, he de-
clared. should be left to the determine
ton Of the supervisory body.