The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-04-23

sres+ during any one year of their entire history
further analysis of these tables indicates tnat the
bod of some of the underlying companies particularly
- of the Roise Valley and the Boise Railroad) were
obablv sold at too great discount Usually the dis
count on bonds varies directly with the rate OF interest
that they bear but particularly according 10 the
hazard of the enterprise The hazards encountered by the
average Public Utility company are numerous ana al
e the promoters of such projects are torced 10 sell
their securities (bonds and stock at very SUBSTANTIAL
discount 1t be remembered that these ProoteIs
must make bid for the money with "hlcn 10 10 thelr
building the same as the manufacturer, banker and mer-
tt If there is stringency in the money market, or
If the particular project which is proposed TO fnance
seems rather hazardous, then the promoter Is orceo 10
sell his securities big discount tor 1t is an economic
law that whoever offers the highest rate OF interest and
best security, is the one WHO ee'S TIC '' ~ 'i
banker.
II the case of the Idaho Traction company fortunately
at this time the subject of bond discount can be waived
because the majority of bonds outstanding against this
operty are being wiped out by foreclosure proceedings
the Federal Court In publishing its results OF operation
tho onanv has waived the question of bond discount and
outstanding bonds and ask that only the actual cash in
vested the property be considered and that 1t be al
lowed to earn fair return that sum- In its Table NO.
which appears this issue, gives the cost of the rail-
wav properties The checking of these figures by the
Public Utilities Commissions expert accountant should not
be much of task and in that way the value of the
nertv can be ascertained though the Commission
was denied an engineering department by the Governor If
these figures are found be correct and it found that
the property has been economically operated, then
feel that the Traction Companys application for increased
rates should be granted for realize that this company
cannot get additional money improve extend its line
on the rate of return that it has earned during the past
eight years. which averaged 48 cent without de-
duction for depreciation Nobody wants to invest his
money at that in enterprise hazardous the
average Public Utility Company
We believe that irrigation, the local electric
lines have done toward developing the Boise Valley
than any other factor. With the power
of this yet for the greater part undeve
oped and with the large sections of state
pleading for better transportation facilities, behooves
to encourage the electric railway industry much
we possibly We should announce to the financial
world builders and organizers everywhere that the
citizens of Idaho willing that fair should be
earned by all money that has been egmatey and honest
ly invested the development of the great of
this Let the commission delay considering the
merits of the companys application, let be influenced
by politics in it's decision. 1t should afe-guard the in
terests of invested capital well the interest of the
citizens of Idaho-in other words it should fair play
all around.