Daily capital journal. (Salem, Oregon) 1903-1919, 1915-08-26
RAILROAD SECURITIES AND INVESTORS

RAILROAD SECURITIES AND INVESTORS
The railroads are continually complaining about the
attitude Of the public They say that legislation has beer
unfrendy for several years and that it has, combined
with the hostility of the people, destroyed the market fol
their securities The latter statement may be true, but
who is really to blame for 1.-THE people or the railroads
themselves? The public has been the buyer of railroad
securities in the past and they have found that much of
these were worthless waered stocks and bonds back OF
which there was little or no security because the proceeds
of the sale had been squandered stolen by the railway
manpulators The Chicago Alton, the Hartford &
New Haven and many other companies disclosed mass
of financial juggling and corruption when investigated
by the courts that astonshed and appalled, those who had
invested in these socaled securities.
Nearly all the unfriendy" legislation complained Of
has been enacted solely to protect the investing public
against robbery and until they assured of that they
are not likely to buy many stocks and bonds placed on
the market by railroad companies. This matter is dis
cussed in very intelligent manner by the MedfOrd Mail
Tribune, in the following editorial:
'lhe report Of the interstate commerce commission
upon the Rock Island system depicts how the INSCRIPTIONS
spectators Of Wall street have amassed millions at the
expense of the investing public through the deliberate
wreckage of profitable railroad.
How can railroads expect to command the friendship
of the public when such methods countenanced?
Moreover how they expect increases in rates when
nearly all of them are suffering from similar exploitation
in the past and doing business upon inflated capitaza
ton? Why should the public be forced to pay interest
for the financial crimes of spectators?
"The report shows that when the clique in control of
the Rock Island desired to get rid of operating official
and seal his mouth they made him present of $4,000
100000 in exchange for his resignation.
"Under the head of unexplained vouchers, the pot-
cal activity of the railroad set FORTH the wastage of the
stockholders money in political corruption One voucher
for $5000 is charged to general expenses" under oper
ating expenses" Says the report:
This Voucher refer. miscellaneous file shown by the index to have
produced and dpcnt effort the
unhNatng Without this file impossible state the
Tor Whrh the expended but the generalization 'COnbuons
a Campaign Committee thc light
cate IN question is clearly suggestive
Among unexplained vouchers was one for $6S231 "to
reimburse W. H Moore for losses sustained by him in sup
porting the market while bonds were being sold" This
certified FOR the benefit of the company" no other
information being forthcoming. Another to s. NJ FELTON,
for $4,000 is explained paid to f. H. Hartman and
associates to the dscontnuance of line of road
being constructed between Peoria and Clinton" Another
voucher for $406605 IL explained as for advertising in
editorial and news columns Of the Denver Post Another
was for $4,000 in favor of Robert Mather for lobbying
at the Illinois legislature.
Small wonder of the officials testified that they
burned their books regularly to conceal transactions to
enable them to forget The net result of this management
rs thus set forth by the commissions
u 1909 The main line the Chicago Railway
company extended from Chicago to Denver with branch ls So Paul
aUl the Of
branch hh' Hue To volume Of tonnage Il then thriving
road o,euce that the earnings Of
tc NuN company me steadily Increased aud that 0 they
the largest Ia existence