The Holly chieftain., 1924-04-03
EXPOSES THREE
FINANCIAL FAKES
Politicians MisIead Public Re-
garding Corporations, Credit,
and Railroads, Says F.
NJ: Shepherd.
FALLkClES MET WITH FACTS
Declares People win Make Short
shrift of Those VINO Deceive
Them When Aroused to Truth
of Own interests.

Three Great misrepresentations. by
which certain politicians have ad-
yanced their own interests at the ex-
pense OF public welfare. were recently
declared by Il. N. Shepherd. Executive
Manager. American Bankers Assocfa-
: ton, in an address at Kansas City,
Missouri. to be the oft-repeated state.
ments that "Wali Street" owns the
corporations, that the Federal Reserve
Banks Disseminated against agricul.
ture and debated the farmers. and that
there are seven billion dollars of wa
ter" in railroad capitalization and
rates should be reduced accordingly.
What Facts Tell
In regard to the alleged ownership
of the corporations by "Wau Street"
Mr. Shepherd showed that the securi.
ties of American corporations are very
widely held by the people The Union
Pacific, be pointed out has over 10000
stockholders and the Pennsylvania
Railroad l4IOOO stockholders, $1,000
Of whom are women, with an average
ownership Of II shares each. The
American Telephone and Telegraph
Company has 100000 stockholders,
10000 of whom are employees, and
the United. States Steel Corporation
has $4,000 stockholders, According
TO recent report of the Interstate
Commerce Commission, he said, Glass
| railroads have total Of 777.122
stockholders, there being, therefore,
practically as many owners of shares
as there are employees.
"The real capitalists of America"
continued Mr.. Shepherd, ARE these
and the boudholiers whose funds are
invested in securities through their
thirty million savings accounts, and
through their ownership OF over n
million life and industrial Insurance
policies. Once arouse these people to
the fact that 1t is their interests which
. are being attacked through these mis-
representations and they will make
short shrifl Of those who deceive them
Truth About the Federal Reserve
"As to the Federal Reserve System.
instead Of its discriminating against
the farmer. exactly the opposite is
true. During the period of greatest
decline in the value Of agricultural
products. about which there has been
SO much loose talk, rediseounts witit
Federal Reserve banks in non,asTicul.
tural districts actually decreased by
28 per cent, but in agricultural dis.
tricts redIscount3 were actually in.
creased by SO per cent The Federal
Reserve Banks OF the big cities Of Bos-
ton. New York, Philadelphia and
Cleveland poured into other Federal
Reserve Banks in agricultural dis.
tricts literaUF hundreds OF millions of
dollars
"As to the alleged seven billions OF
water in the railroads, a physical
valuation of the railroad properties
has been under way for the past ten
years, as a result Of the La Toilette
Act, conducted by a body Of unpreju
diced n-political experts by whom
the valuation has been placed at SIS.
100000, 600. Although it has been OF.
fcially stated. aud reiterated that, in
arriving at this figure, no con2idera
tion whatever was given to capitaliza,
ton, politicallymindcd men are still
deceivlng the public, and particularly
the farmers, about the water in the
railroads, Railroad stock today is
not watered. Amy possible fair scheme
of valuation today proves that our
railroads are worth from one to TWO
billion dollars more than their CAPT.
talization.
No Railroad Income Guarantee
Further, dcmngogues are telling
people that the railroad income is
guaranteed. The Esch-Cummns Act
does not guarantee any return to rail.
road stockholders, as the dcmagosuss
constantly assert. By It's terms the
Act simply provides d yard stick for
rate making, which Us THAT a fair rail.
road rate Is one which would show
a return Of 5A per cent upon the &c,
-tual value OF the property used in
transportation in given territory
This provision bears no relation
whatever 10 railroad capitalization
and. moreover, no relation to iHdiyIu-
ual railroads, some os which might
show earnings under such rationale
ing provision in excess Of six per cent,
and some much less. No consiaora-
ton whatever lis given in the Act or
in the administration Of the Interstate
Commerce Commission to railroad
Capitalization or any return upon It,"
MlODLEMAN's PROFITS.