The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-12-01
E. L. Copeland Compares Pri-
vate and Government Capital.
Santa Fe Treasurer Criticises
Uncle Sans Methods.
URGES 4 FEDERAL COMMISSION
To Control Railroad Securities
and Money Expenditures.
Other Items of General Interest
in the Traffic World.

E. L. Copeland. secretary and treas
| urer of the Atchison, Topeka & Santa
F'e railway, made an address before the
| Saturday Night club at their annual
| banquet. November %. on the subject,
The Credit and Income Of Industries
and Railroads Affected by Existing
Emergency" Mr.. Copeland's address
| dealt with the problems of the rail-
| road, of the legislation against the
roads, the conflicting regulating laws
in the different states and other things
of interest to those interested in rail-
way matters.
Mr. Copeland, in speaking of the COM
parative differences between the rail-
roads and the federal government, said:
The recent act Of congress to tax
the people was for the express purpose
of increasing the income of the nation
and to protect it's credit. Why did not
the wise heads at Washington issue
bonds and thereby place the burden
upon pOsterity and relieve the present
situation? For the very reason that
an emergency existed-bond market re-
stricted-rates of interest high-the
country in an abnormal financial cOndi-
ton. A bond issue would have affect
ed the credit of the outstanding bonds.
Nov. if this condition is serious for
the government, with so many avenues
Of redress, how about the corporations
financed by private methods? If the
government must establish unusual
methods to protect its credit in time Of
distress, should not the regulating COM
missions adopt emergency methods to
assist the struggling corporations to
maintain their credit? The income of
the railroads has been reduced, caused
by increased cost of material labor and
regulation expenses, and the natural
consequence is the injury of their credit
by the decrease in value Of outstanding
securities
In regard to the gross and net in
comes. the speaker said:
1.-The gross income Of an industry
does not determine the ratio of profit
in the years business. but the net in
come shows the gain. The comparison
made with the previous years business
develops interesting Information of vital
Importance. 1t Is an index to the
growth Of the community, the general
prosperity of the people. the increase
or decrease of crop productions, and
the information needed to decide
whether a constructive policy should be
adopted for the coming year or whether
expansion should be prevented and a
conservative policy adopted
Near the conclusion of his talk Mr..
Copeland made the following sugges-
ton:
|. I'm the readjustrnent Of our econom-
fc condition, L would suggest federal
commission to control the issuance of
railroad securities and the proper ex-
penditure of the money and under the
regulation of the government. an in
come would be permitted to the rail-
road company to pay a proper rate Of
interest and dividend. Then. these
authorized securities should be handled
by the reserve banks of the country and
the people could place their earnings
in such securities, thereby establishing
a credit because the income would be
assured