Show RAILROAD STOCKS EXTREMELY MOIST New ew York April 1111 2 Thomas F F. Ryan before the special grand Jury jUly In the Investigating Investigating- of Metropolitan Traction ma made e the startling declaration that 05 95 per cent of or the of all tho the railroads s in the United States Stales are watered and have but a a. bare percentage of intrinsic value alue Mr rr Ryan nan referred to financial conditions con con- of railroads as an argument to support his contention that in the lie organization of tho Metropolitan ralla rall- rall a vay tay and the subsequent merging of oC other companies under one ono great s stem s 's tern tem em and the actual cash paid in for Cor forstock forstock stock surpassed that of any railroad In n the lie country As a matter of courtesy District At- At Attorney torney consented to have e placed before eforo the grand g Jury jUlY tho the full text of oC the statement which Mr 1 Ryan ma made nado o public on the day the tho grand Jur jury ury tiled flIed Its presentment after five years ears silence as to his participation In n Metropolitan l affairs 4 A Hunker Opinion Mr Ir Ryan nan said Mr 11 Jerome in lit questioning Ryan Hyan as a banker you ou have hn lave been familiar with the capitalization capitali- capitali of tho thu railroads of oC the thc countr country coun- coun tr try ry have bat you OU not Yes sir sh How will wIn that compare comparo that per per- of water In the ito Metropolitan if IC f you OU call it such with other othel roads roas Ninety live p per r cent of the stock of all ahl railroad corporations of or this country never costs a a. dollar You mean that 9 95 per por or cent of or tho the capital stock of or tho the railroads of or this countr country are alc all water In lit the lie last IQ or 12 1 years it was cas easy to raise monc money on oil stocks sock a and bonds bunds but up to 1885 ninety five ct por per percent pori cent ent 0 r t h In 10 HL un cJ I Iun un or hu t t i ru 1 n tf In co corporations of this country coun- coun try 13 ry never ne put Jut in one une dollar on their theil stock except a little organization expenses expenses ex ex- penile's that were required for a few shares of or stock in the beginning Metropolitan an tilL exception lou olI So that then lien your experience in these hese matters is that hat cash paid In n f Or r ever every In stock Is exceptional exceptional exceptional Yes sir It being much more cash paid in than titan Is customary in other othel corporations corporations corporations corpora corpora- Up UJ to 1872 there was not nOl ono one dolar dol- dol ol- ol mr lal ar paid in on SL St Paul raul Northwestern o Omaha or an any of oi these railroads s If Ie you ou took these roa roads s as the they stand to today a- a Including the roads that have ha tave been on organized and supposed to tobe tobe tobe be put on a tL sound basis taking them item themas th m mas as a whole both in steam railroading and surface railroading would In n cash for tor e w ry r share sharo of 1 00 par be jo a large largo percentage e in cash A large percentage Why hY 90 per percent percent percent cent have not had anything Not ot only that In the reorganization that thal took place from up Uj lo to 1907 they assessed assessed assessed as as- these stocks and bonds Wo Vo understood you OU then said ono one of or the jurors that the roa roads s cost only 5 r per her cent of oC the capital Issue Thc They were built with bonds on s Built with bonds bond that Is It The Tho Union Pacific railway was built with bonds and got a n land grant worth front from thu tho government be be- be side And nd Atchison the thc same sante 1 asked a juror Yes that is Atchison and tho Ito thoU U Union Pacific are arc the same Yet these great reat Issues of or stock in 9 95 per pcr cent of or railroads which are aro pure pUle water put putout putout putout out In our great speculative eras are now accepted b by banks as collateral collateral collateral col col- col- col lateral for loans and financial dealIngs deal deal- ings logs |