Show k THE THE CAPITALIZATION OF RAILROADS i At At the Econ Economic mic club dinners Stuyvesant sant Fish FishI d declared that no railroad in this country i is overcapitalized Over over- Overcapitalized v rI r- r I I capitalized capit today and that railroads are not overcapitalized over overcapitalized over over- i c capitalized d but undercapitalized In his Indiana Indianapolis speech the President says say I As As a whole the railroad property of the country is IS I worth as mu much h as the securities representing it bt but t f- f there are ex exceptions due to gross and nd flagrant j t f Jon Noting the above the V World says that within that within afew a afew al few days E E U. Harriman has def defended tUe te issue of of new securities by the Union Pacific and aud Southern p Pacific since he got control of it on the plea that the roads had be been n largely reorganized rebuilt rebuilt re xe- built and re-equipped re under his management Her He r refrained from saying that an equivalent r 1 sum of mo money y had been expended in improvements and extensions I- I There are two ways to look oo at that not only what has been expended t to improve the roads but the effect of the expenditure on business When Mr 1111 Harriman t took ok hold of the Union and Southern Pacific Pato Pa- Pa to roads they ivere were little more than a streak of i rusty lusty iron and right of way saddled with an appalling appall appall- s r ing irig m mortgage gage When Mr Ur Carnegie in the old days j 7 put in machinery in his constructive ironworks which t doubled the capacity of the tho works without increasing as- as in ing the cost c cost st his works we were e not enhanced in value ft i just the amount the machinery cost ost but the value h was estimated at the earning capacity l' l What Mr l Harriman has d done ne' ne with the Union and andr r i Southern Pacific roads has more more than trebled their r. r earning capacity and it seems to t us S the stockholders l in hi the road ought to rate their securities not by their heir original cost but by their dividend ity The World says Dir Mr HarrIman is IS a speculator spec- spec t r on railroad securities If that is true l f he ought t to be stopped but when the V World orld orld's t says s 's says ys that the roads he bought bought- last year or r year year before have fallen 20 or or 30 per pel percent cent andi and i speaks as though it was vas Mr Harriman's work that tha that t had dope done that that is is not only unfair but dishonest dishon dishon- i est cst because for some reason not yet explained the tho thoi i whole line of railroad sto stocks ks as well as other stocks h have ve fallen quite that amount amount and such stocks as the fit N New w York Central which ought to be as g good od property property property prop- prop erty as there is on e earth rth have fa fallen lien more than that amount f r There is a a s section bf f the Eastern press which f r seems to be corporation mad and in our oui judge judg- merit it is this press which h has been slashing at the railroads the mines the the various vario s trusts of the country coun- coun j try at wealth generally that has caused the present z depression along all the lines lines oi oj stocks stocks that men I n deal in m. m We cannot see what is to oe Je a gained gamed by it There have been beeh abuses on the me railroads because the directs directors direct- direct ors ors s have used exactly the same means of carrying on their business that the ordinary business man employs cm- cm ploys ever every every day I A wholesale merchant will sell a carload of pf goods at a lower I rate t than an he will sell pounds Thel The Th TheL l J L r J only difference between that and the rai railroad road is that the railroad is a common carrier and ought not t to discriminate between customers At the same time there is an argument in mitigation of even that For instance a man engaged in shipping bullion said theother the theother other day We Ve ought ought to have a little better rate than the man who sells say pounds because we load our own bullion We simply report to the railroad railroad railroad rail rail- road company that such uch a car is ready it reaches its destination our people are are re there to unload it and and ta to tc turn the car back to the company F From beginning to end has tro om the company no ible i- i ble is at no expense not even for bookkeepers i in fh the office We Ve Ile think the judgment of the country is th th tt t whatever wrongs are being p perpetrated by money I combines ought to to be corrected by the Government but that the stead assaults of a certain class Glass of newspapers on capital generally will if continued eventuate te in a paralysis of f business that will block bloc ever every r industry in the country |