Monte Vista journal and Monte Vista graphic-reporter., 1923-11-02

haasted. through gross overcapitalisi
Aew bonds. they are now purchasinl
by the issuance OF car trust certifica
Such car trust certificates grew
- secure funds by other methods Il
fixed obligations.
Under the handicap Of = large
secure funds for the purchase OF eQ
1ortgages. No investor was willing
- notes. whose tangible security del
vas junior to all existing funded DE-
This condition necessitated the creat
eould be separated from the other fu
The plan under which the car
trust certificates, commonly known
- the Philadelphia plan. are issued.
has besome quite we'll standardized.
The railroad enters into . contract
for equipment with the manufactur
er and makes an initial payment on
the stipulated equipment without
receiving other evidence than . re-
esipt for such payment.
When the equipment 10 ready for
delivery. = formal agreement 10
drawn between the manufacturer
asd an individual. an association.
corporation. or q trust company.
Thea one Of the latter leases the
equipment to . railroad.
The lease IL then assigned by the
laAivtdual, association, corporation,
o. trust company. through . trustee.
aaA interest bearing certificates q
"'hsaeficiai interest In the associa
1Soa" are issued and sold to the
Dabiic. The proceeds are used to
Day the manufacturer. The title TO
tie equipment remains with the
trustee for the benefit Of the share
holders until all obligations Of the
iseue have been paid.
This method can be compared
With q newiy-wed couple buying
furniture on the instailment plan.
There 10 this difference. however
The newly wed couple. as rule. has
youth. earning capacity and Its fu-
sure as assets. whereas the railroad
or railroads buying equipment on
the insiallment plan have impaired
credit and n bad past OF gross over
capitalization and exploitation.
UAllsOasls arc Artists
A. withholding fsrss
Il Ii difficult. without much ef-
fort. to get the facts before the
Dublic. the ss.3 per cent OF our popu-
lation. the producers and consumers
Who are being mulcted by the ex-
e@ssive rates under the Esch-Cum-
nins Act
The railroad stock owners. seven
senths OF one per cent OF our popu-
iation. control directly or indirectly
. large part OF the press and other
publications. which are prohibited
from publishing articles. written by
men understanding the railroad
business. In which full facts are
given.
To confuse and camouflage the Is
sue. articles by professional writer's
and others with no understanding
or knowledge Of the railroad bust
meas. are given full and complete
publicity.
An article OF this character. en-
titled 'Thc Future Of the Railroads"
appeared this summer IN the Satur-
day Evening Post. written by Isaac
y. Marcosson. Mr.. Marcossoa 10 an
excellent professional writer. Writ
Tag 10 his profession. He writes and
has written ON many subjects. An
articis BY the late Robert Louis
Osevsason. great writer that he was.
% The railroad situation. would bs
Of rot more practical vaiss than
sscA articles - above Described.
caa . nan nsssss the rsilroad
busissss. great sub3set hat Il =.
osl scatter bic tine anA thought
q seliew another Droesssseaf Con-
0oa ssoss says -. TIE writer q
ehts go Deeteivsly ~ -. basel
upss thlsty yssss Of sspssssses n
- ro1jSool b0o1oeee
Danhs nansea1D oeeaass
Ws1p - 1nla1s1 nsssks
~ nao ssaDsaslbi,isy - uDen
nn13oool - 1jsestess. sefIsees sA1