The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1924-05-02
Politicians MisIead Public Re-
garding Corporations, Credit,
and Railroads, Says F.
N. Shepherd.
PALACES MET WITH FACTS
Declares People VIII Make Short
shrIft Of Those Who Deceive
Them When Aroused to Truth
Of Own Interests.

rs Inree great misrepresentation, /
which certain politicians have q
vanced their own interests at the e
pense Of public welfare, were recent
> declared by F. N. Shepherd, Executiv
Manager, American Bankers Assocf,
o ton, In an address at Kansas Cit,
e Missouri, to be the o~ft-repeated stat,
! ments that Wall Street" owns tn
corporations, that the Federal Reserv
Banks disseminated against agricu,
ture and Debated the farmers, and tina
there are seven billion dollars of IVA
ter" In railroad capitalization an,
rates should be reduced accordingly
What Facts Tell
In regard to the alleged ownershig
OF the corporations by wal Street.
Mr.. Shepherd showed that the securi
ties of American corporations are very
widely held by the people. The Union
Pacific, he pointed out. has over 80, 900
stockholders and the Pennsylvania
Railroad $4,000 stockholders, $1,000
of whom are women. with an average
ownership OF Al shares each. The
American Telephone and Telegraph
Company has zoe, 900 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. Class
| railroads have a total OF 777.132
stockholders. there being, therefore.
practically as many owners of shares
as there are employees.
The real capitalists OF America"
Mr.. Shepherd. ARE these
and the bondholders whose funds are
invested In securities through their |
Lnirty million savings accounts. and
Lnrough their ownership of over II |
million life and Industrial insurance |
policies. Once arouse these people to
ne TACT that it is their interests which |
re being attacked through these mis-
representations and they will make
mort shrift of those who deceive them.
Truth About the Federal Reserve
AS to the Federal Reserve System
instead OF its discriminating against
farmer. exactly the opposite is
rue. During the period OF greatest
eciine In the value Of agricultural
roducts, about which there has been
0 much loose talk, ~rediscounts with
'ederal Reserve banks in non-agricuI.
aral districts actually decreased by
per cent. but in agricultural dis
rediscounts were actually in
reased by IS per cent. The Federal
Banks OF the big cities OF Bos.
IN. New York. Philadelphia and
poured into other Federal
eserve Banks in agricultural dis.
lcts literally hundreds of millions of
:
A to the alleged seven billions OF
'ater In the railroads. a physical
'luation OF the railroad properties
IS beer under way for the past ten
'ars, as a result OF the La Toilette
r. conducted by a body Of unpreju-
non-political experts by whom
valuation has been placed at $1s,-
Although 1t has been Of
SAily stated. and reiterated, that. in
living at this figure, no c~onsidera-
n Whatever was given to c%apitalza.
a. poiItfcally-minded men are stiiI
'epilng the public, and particularly
mer about the water IN the
iroads. Railroad stock today is
watered. Any possible fair scheme
valuation today proves that our
are worth from one TO two
Lon dollars more than their CAM.
cation.
No Railroad Income Guarantee
demagogues are telling
pie that the railroad income i,
ranteed. The Eseh-cummlns Act
; not guarantee any return to rail.
stockholders, a. the demaooaues .
SANITY assert By Its terms the
simply provides q yard stick for !.
making, which is that a fair rail-
rate is n which WOULD show
turn OF 5% per cent upon the &C.
value Of the property used in
in . given territory. '
MS providoa bears no relation
ever to railroad capitalization a
moreover, no relation to ind,vid.
railroads. some Of which might 0
earnings under such Z rate-mak.
n excess Of six per cent.
much less. No considers.
IL given in the Act Or A
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