The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-05-02
FEDERAL INCORPORATION.
"Civitas" Explains TO Investors Their
Interest in His Plan.

Ifefh ''e ~
vestors.
My plan hoes not contemplate the
exchange Of share for share. In fact
n and a half shares Of the guaran-
teed stock may be issued for one share
Of old stock worth $3.50. Or one share
Of new may he issued for i've shares Of
old worth $50 each. The Federal rail-
road board would determine all that.
Nor are the present stockholders
obliged to come into the Federal rail-
road incorporation at all. ON the con-
trary. they may stay out IL they wish.
Then If the Federal corporation de-
sires their stock II must he condemned.
But that Is not confscation. ON the
contrary. the award would he the full
value of the stock. For oyer twenty
years New York has had such a statute
where a corporation sells its property
tStOck Corp. Law. sec. ID. Or an
other thing may happen under the
proposed act Of Congress. The Federal
corporation may condemn the railroad
itself. n in that event the Federal
corporation would pay the fun value
OF the railroad itself, and then the
present stockholders would get their
u pIOpoi oIldt PdIt uIoh
button of the award. In any case Mr..
Wild's stock would be protected. Per-
sonally ! think he would find 1t to
his advantage 10 turn in his stool
voluntarily to the Federal corpora
tior. because the new stock. with a
United states guaranty OF dividends.
would be worth more in the market
than his present stock.
And now to investors generally,
bondholders md stockholders. You
have So .000. 900. 900 at stake. Your
investment Is In bad shape. AZ pres
ent We have a furry Of railroad pros
perity, but that viii not survive the
war. Your $4,000. O0O. 900 is IN jeop-
ardy because the West believes much
O. IL Is water" And the West has the
votes in Congress and out Of Congress,
II has been urging on regulation for
the past ten years.
But at last re~g i,ation has GER
leaped itself Railroad construction
has stopped and the whole country is
suffering The railroads have got To
have 81 1000. 600. 900 "A year FOR several
years to provide Tor the growth of
traffic. Three things are possible:
- ~ i''eis'"t '''"l''e''e o''"
mission might a!!ow h'gher railroad
sa'es 10 reestaoish ra'iroad cTedit'
That will not happen.
- 'oFefhmeh' o"he'ShiP' mat e"
still far off.
d feueia! ihc"t pofatl'h' lhat -
likely u fedfra' Incorporation VIII
not IN l'sell raise lHe Si'~ooo'"o"'o"o a
year IN iact' federaI Incorporation
VIII mercy eHhn.e 'he r"IlroauS w
snake OH state re2u'a'i"h' ME- lhom'
'he ta1th'e" 'oOhs'' representing over
so per cent Oh 'he 'ailr"aa mileie" "'
'he co'ih'r! 'ssh'"'"n' o' Nhuch'' 'cS-
t'"ed before a ,ohsreSsi"ha! coihiiiI''ee
on February 20 1910. nat the ran
''""S ""i"Se 'ld' 'h'le S"h'' w 4"
system ~ compulsory federaI moor
p"'a''"h o' an '"'i'''S els'seu III IN
,e'"'a'e commerce ,pp' III li''' h''
oe"a'" VI ''''NS u APPEAR "''r'hl
ifl'h eH's feu.raI Incorporation Wiz
NOT ia "s'' increase r"',r"ad 'a'e>'
ana without suth increase 'he r'.'roads
cannon ger *i'ooV'ooo'Voo a year IL l.
evident mat some radica! move IL G
essary' with me pupIic ADMITTED INTO
'he coparthershlp a~c'"rdins'y o
pose a FORM OF feuera, Incorporation
similar 10 mat o' 'ne feue'a' ehaF'eT
10 t"e ,h'oh racine r"''rodu many
years ago. except mat Wou'd nave l''e
Government name All Oh the directors
ihs'eau OF I'VE out Oh Hi'eeh as was
GONE III mat char'er
iufther ropos max 'he '"Nerh-
rheht sna'' name 'hese directors 'y
means oi " reuer"' r".'t""u ""iru
! iurtheT propose ior your dement, tHa'
'He 'oN'i"iht" S'a'' e"''a"'e" " per
cent u'N'u'h"S on 'He ne" STOCK "t Inc
reoeral curP"r"ti"hS' No" 1" re'eI|.
a'So an h'dl,''u'' . per cent II earned
ana deo'ared' the government 10 take
the surplus u 'hat were u"he inc
~ %" 'ooo ooo a year 'onin easily he
iaiseh ana your Sl''~oo"'"""'""o invest
ment would he sa'", rs 10 a federal
railr"a" n"aru naming the directorate
you would ne g'ihs up ho'h'hg' lou
az present nave l'e rish' 10 wore hu
you doht vote n"u sehd IN your
proxies Ana what Klno or directo'
rate nav" you Ro'I rave you ever
iooNe" 'ne'h over 10 you KNOW" 'he'
characteristi's' II" 'ney wy 10 40 inc
'alr 'hlhs W. on 'ne contrary are
they Always trying 70 peat SOMEBODY
ei'her tne P""''c OF so'ne nhe'hper o'
the pupllc'
ihese questions are Nl'al nechuSf
.ley Sn"" why 'he r"'lr"aos are ha''d