The Dolores star., 1924-05-30
EXPOSES THREE
FINANCIAL FAkEs|
Politicians Mislead Public 4.
garding Corporations, Credit
and Railroads, Says f,
N. Shepherd.
FALLAcIEs MET WITH FAcnI
Declares People VIII Make aA..
shrift Of Those Who peeeIv,
Them When Aroused to Truth
Of Own interests.

OF OWn interests.
Three great ton, \, 4
which certain politicians have !,
vanced their own interests at thu I. |,
pense OF public welfare. were recen,,
declared by F. N. Shepherd. E1ecut,,,
Manager. American Bankers Assoc,.
ton, in an address at Kansas C1,,
Missouri. to be the oft-repeated stat.
ments that wall Street" owns N, I
corporations, that the Federal Reser,,
Banks Disseminated against agriculf
ture and debated the farmers, and thu
there are seven billion dollars OF ~.
ter" In railroad capitalization nm, 1
rates should be reduced accordinsb
What Facts Tell
In regard to the alleged ownershhs
OF the corporations by wall Stree,
Mr.. Shepherd showed that the secunv
ties of American corporations are ve,e
widely held by the people. The Union 4
Pacific. he pointed out. has over 5o0xt
stockholders and the Pennsylvsns
Railroad 147.00O stockholders, s7haa
OF whom are women, with an aver,n,
ownership OF A shares each. Tn,
American Telephone and Telesr,a
Company has 100000 stockholm
10000 Of whom are employ ees. aa
the United States Steel Corporsta.. ..
has 174.O stockholders. Acoordht,.
to recent report Of the lntsrsaa
Commerce Commission. he said, Chs
| railroads have total OF 7T7,1rs
stockholders. there being. therstor
practically as many owners Of gharst,
as there are employees.
THE real capitalists OF Amera's h
continued Mr.. Shepherd. ARE A~
and the bondholders whose funds N !
invested in securities through thsr
thirty million savings accounts, ut
through their ownership OF over III
million life and Industrial Insurance.
policies. Once arouse these people a1
the fact that it is their interests vhk.
are being attacked through these nj. !
representations and they will maid
short shrift of those who deceive thel;l
Truth About the Federal Reserys
"As to the Federal Reserve Systes
instead OF It's discriminating agaiaa5
the farmer. exactly the opposite y
true. During the period OF greaisIs =
decline In the value Of asricultny
products. about which there has bed Z
80 much loose talk, rediscounts vnx
Federal Reserve banks In non-agric1'
tural districts actually decreased hs
2S per cent. but in agricultural dtH
tricts rediscounts were actually "
creased by sc per cent. The Feden.
Reserve Banks Of the big cities Of Bsssl
ton. New York. Philadelphia aa
Cleveland poured into other Fedsn
Reserve Banks III agricultural w
tricts literally hundreds of millions
dollars.
As to the alleged seven billions
water in the railroads. q physo'l
has been under way for the past n
years. as result Of the La Follstf
Act, conducted by body of unprstf'
diced. non political experts by wha7
the valuation has been placed at &u5l
s00.0o0,000. Although 1t has been ~
fcially stated. and reiterated. thai,
arriving at this figure, no considerI
tion whatever was given to capitann
tion, politically-minded men are ~
deceiving the public, and particulaiS
the farmers, about the water In "
railroads. Railroad stock today n
not watered. Any possible fair schss1
of valuation today proves that -
railroads are worth from one to W
billion dollars more than their capS
talization.
No Railroad Income Guarantss
Further, demagogues are tall1
people that the railroad income
guaranteed. The Eseh-cumnins
does not guarantee any return to NJ
road stockholders, ~ the dema9oss
constantly assert. By its terms ~
ACT SIMPLY provides YARD sucA ~
rate making, which 10 that fair n
road rate is one which would -
q return Of 5A per cent upon ~
tual value Of the property ussa
transportation In q given territofy
This provision bears no rslsn
whatever to railroad capitalism a.
and, moreover, NO relation to inan
ual railroads, some of which ny
show earnings under such . raten
Ing provision In excess Of SIX psf
ana some much less. Nc consN
tion whatever 10 given in the Aa r.
In the administration Of the lntsr@
Commerce Commission to rau
capitalization or any return upea