The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-05-23
SUFFICIENT RATES
INDUCE new Money
GEORGE Il. REID ADDRESSES
UNIVERSITY STUDENTS ON FIN
ANGLING OF RAILROADS

Railroad rates as a whole must
be sufficient and should be only suffi-
cient to induce new capital to enter
the enterprise when it is needed >"
Gorge T. Reid of Seattle, vice-presi-
dnt and general counsel of the wes-
tern division of the Northern Pacific.
said in his address to University of
Idaho students, Wednesday morning
on How Railroads are Financed
The address was one of the most able
and interesting of the entire college
year.
The company that cannot finance
itself when new capital is needed is
doomed to failure" the speaker con-
tinued :" 1t is a lamentable fact that
no railroad in the United States can
raise any substantial sum of money.
The public has been regulating the
rates to such an extent that the in
vesting public has become scared.
Any concern that cannot raise new
money, without mortgaging what it
already has, is doomed. The concern
must be able to get new partners
Critical Railroad Problem
We are at critical period in re-
ference to transportation and the
cannot prosper without trans
portation. Without adequate trans
Dortation the country cannot continue
% prosper.
g The fate of reformers that has
always stood in the way of all social
site schemes is that no person. since
The dawn of civilization, has ever
,een able to suggest law that will
compel person to invest one single
lollar. That's where all socialistic
chemers stub their toes. There is
10 power to make people raise more
Wheat or cut more timber
Predicts Inflated Currency
6 Business stagnates from the time
he despotic hand is laid upon it.
he one and only way for a country
D prosper is to give to every man
ne right to take what he earns You
ill see at least one or two attempts
} initiate the currency even as I have
cen two attempts to increase the
alue of something beyond its real
alue
"The difficulty of socialistic
themes is that the facts of human
ature are disregarded. Splendid
eories may be advanced but no ac-
,unt is taken of human nature. The
'cialistic scheme may be a bully one
+ angels but not for human beings.
uman nature does not change at all
that the soap-box agitator can
,ver hope to educate the people
cause human nature has been and
ways will be the same. Human ma
re runs true to form generation
-er generation.
Safe Investments Govern
&c One of the first laws of human
ture is the desire to reproduce and
mans prime purpose in life is to
re for those dependent upon him.
e money that you have you are
ing to invest where it is safe and
ere it will produce for your de-
ldents after your death.
An irreparable injury is being
ne the railroads or any concern
en- the investing public is made to
] that railroad investment is not
e. You cannot make the indivi-
II invest his money where he feels
will not be safe. Induce the pub
by fair treatment, by the hope of
urn, to put money in transporta-
~
Appearance of Wisdom
Gr. Reid defined the glib users of
words Z" watered stock" as those
no use it because it is presumed
give them an appearance of wis
A." He told of the building of
Northern Pacific until today the
1pany has $150,00O,000 more than
bonds and stocks all together.
n speaking of railroad finance Mr..
d explained that small sums of
ley must be raised from large
IS of people and that the money
IT be raised in two ways-the sale
capital stock and the sale of mort
ed bonds-because of the two
ses of investors The Northern
ific has 37.700 stockholders, Mr..
] said, and there are approximately
900 people who own one or more
res of railroad stock, approximate
me million people who hold rail-
| bonds and that there are 1861
railroad employees.
Explains Stocks and Bonds
r. Reid explained the difference
yeen bond holders and stockhol-
and the reasons why investors
stocks or bonds, and why rail-
financing must be brought about
he two methods.
lie speaker was introduced by
H. c. Dale, head of the univer-
department of economies. Robt.
rook, of Sweet, a senior in the
oil of education. announced the
ibution of 1000 stickers for en-
)es in advertising the University
laho Pageant here June g.
ard Hatfield Dfphtheria Patient
Howard Hatfia1d son of nr