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Bpitalization of railroads The Railroads of the United States Are Not Over Capitalized as Compared with Those of Other Countries. K Wafl?i?Kton, J). c.f July IS.?The ^ niost important question likely to en?igc tno attention of the (50th ConEl1-0S8 is that of railway capitalization. WF] re-sU)ent Roosevelt., Attorney GenV t,ral i^onaparte, and the Inter-state Cmnnu^e Commission are studying tin* question with a view of arriving at a deliiiite plan to be presented to the nation*? -law-making body when H convenes^ first Monday* in De comber. PreS Roosevelt and j| Chairman Knapp, Nfflfthe Interstate WJ Commerce Commissi)^ l,nve declared that there is no foundation for the M claim that our railv^s are over eapB italized, and (here m little, doubt that a sane and just plan for the control of capitalization in the future will be formulated by those having* the matter in charge. The plan [presented will undoubtedly be based upon lines guaranteeing justice to both the railroads and to those who use them and invest Hj in their securities. In \ic\v of the fact that much misinformation on the subject of railway capitalization has been diffused P through the medium of yellow journals it has been deemed advisable to consult those who have given the question much thought in order that the public may be advised of unimpeachable information relating to this great question. Wuh that object in % icw Prof. IT. T. Newcomb, one of M our greatest and most learned cconoM mists and statisticians, has been askX ed to communicate through the press K of the country his views on the subProfessor Newcomb, in speaking of y the matter, gave it as his opinion that there are few subjects relating to the fj industrial life of the American peo pie upon which so much misinformation is current, or concerning which there is such widespread misunderstanding as that of the capitalization B American railways. This is unfortunate for not only is the direct own| ership of railway shares and bonds alM ready greatly diffused but they would A constitute, if unwise legislation could Mb !-?e avoided, the most staple and satisactorv investment generally opened w',oso moderate incomes, as yF ,/r t'Uiers, artisans, or clerks, permit only small accumulations. With the as/|| vsurance against unjust interference g| 1 which would result from full public Ha yomprehension, the existence of such J. ready means of investing small savl| t ngs would once become the greatest ^/incentive to economy and frugality. | It is unfortunate, also, because such M misunderstanding is a constant threat JR against the security afforded by the I billions of dollars of railway bonds k and the smaller quantity of railway shares that arc held in the treasuries of savings banks, life insurance comjff panics, fire insurance companies, and bonding guaranteeing companies, and W on which depend their ability to fulfill their obligations to millions of American citizens. Further than this, it is unfortunate because it is one of the causes which is depleting the mone ymarket of capital seeking in vestment in railway enterprises, incieasing the difficulty of obtaining I. m.ds for new construction and for renewals and improvements and bringing about a rise in interest rates that must prove a burden to the industry i ",0 Misunderstanding has not occurred because the subject is necessarily obscure or attended with difficulty, for it is neither. The Interstate Commerce Commission has published eighteen successive annual ivolumes of railway statistics, the Census Office has devoted volumes and folio pamphlets to the same subject and there are many private publications that are reliable and valuable. ? Whoever will study the subject with intelligence and without prejudice ^^will, from the materials thus avail')C reach an accurate collar The latest statistical report issued 1 'by the Interstate Commerce Commission covers the fiscal year which endI cd with June 30, 1905. At the end of I Mat. year the railways of the United JH^?^'tics had an aggregate length of 218,101 miles, of which 217,018 miles were covered by reports to the Com mission. The total capitalization of the reporting railways on that date was $11,107,105,992 or at the rate of $51,457 per mile of line. The aggregate railway mileage of ]| the countries of Europe, in June, 00(>, was 177,491 miles, with a total Capitalization of $20,018,418,000, or in average of .$1 12,78(5 per mile, or nore than twice the average in Ibis ountry. ilius the European railway ystem which has less than 82 miles >r each 100 miles in the United ates, sustains $179.20 of eapitalizaHon for every $100 sustained by the ailv/ays of -this country. Even Can uia, with its system of approximately ^,000 miles of railway, largely built with the aid of credit loaned by the government, shows an average capitalization of over $(50,000 per mile, or nearly 20 per cent higher than the I nited Stales. 1 he capitalization representing American rnliways consists of securities of many different grades, each .made making its claim for annual returns to its owners with separato foice and having its own degree of power or lack of power to enforce its demands. The highest grade of security consists of mortgage bonds which carry the right to a definite income with the property itself pledged against default. Other funded debt includes bonds based upon income I which involve no lien upon the properly and equipment trust obligations, secured by liens upon rolling stock. It it were possible to obtain complete statistics concerning the vast expenditures made within the last decade for (lie betterment of the great i ail way sysems of (lie country the lads disclosed would amaze those who arc inclined to accept the charges of '"over-capitalization." Figures recently published showing the combined expenditures of the eleven operating companies of the Pennsylvania railroad system during the period of six and one-half years that ended with June 30, 100G, show a total outlay exceeding the total par values of all (lie stocks outstanding against the system. If il were true that "over-capitalization" does exist, to the full extent of the wildest charge of (be noisiest | demagogue, the fact would be of no injury and of no consequence to the purchaser of railway services. The persistence <?| the erroneous notion that tbere is some occult force in par values which make their inflation an easy means of extort insr excessive rates from the shipping and traveling public is one of the strangest of phenomena in the whole history of popular delusion. If more comprehensive proof that there is no such relation as is alleged between capitalization and rates is desired il is at hand. The statistics published by the Interstate Commerce Commission permit the separation of the data supplied into totals each representing one of the three great territorial divisions of the United Slates. The importance of mere par values to influence charges for their own benefit is further established by the tact that throughout the entire history of American railway development large portions of the aggregate capitalization have gone without any return whatever. Even the amazing prosperity of the last five years has not sufficed to prevent more than onethird of all railway shares and a considerable volume of railway bonds from going portionless. The wages of railway labor have been repeatedly advanced since 1S07: the cost of fuel for locomotives, of rails and ties, of lumber, in fact of every item of railway expenditure has been constantly soaring; taxes on railway property are everywhere higher; the owners of such property are threatened with double taxation by means of taxes on income^ and on inheritances?but rates have gone down and are ever lending downward. How much further these processes can and ought to go constitute the gravest industrial problem that the people of the I.nited Stales have to solve. James S. McCarthy. E. SHEEHAN Augusta, Ga. Bottler of Imperial Ginger Ale, Root Beer, Champagne Cider, Wiseola and Domestic Lagej* Beer in pints, 10 dozen to the cask, $8.50 per cask. Write for complete price list. Wholesale and retail dealer in Wines and Liquors. NOTICE. Before letting the contract for your new building see W.T. Livingston. Best Work. Lowest prices. Lock Box No. 59., Newberry, S. C v [* ' jj-'.v- -/'v ' " ' ( * * LC^OK AT THESE j Canadian Oak Rocker. This beautiful Ci:io Si--i Rocker, made up of ' elect Canadian air dried O.ik, i> well mi ru.teed to 11s that should you b :y one and it did not f^ive cn'ire >at i^f.ictiun we would replace it with a new one any time within a year I mm date of shipment. Regular pr.ee $3*50? special price $2 5 1. h ?S5g#?Bte> j Solid Guaranteed Oak Centre Table, 0 Far.cv "'a-Irr I amp. Either round or square. This Table is | Length 34' j inches, extends to equally as good material as the Oak I emb^-d'-i '' t^Vi^neh Rocker above. Regular price ?'i inch I cone shade, clear glass il fount, , ..... E - Sun b ! .1 ;i| chimney. M-S?b special price .*2 Hael^^^^^^^.5()Lace Curtainr?White. Improved q u a 1 i t y . Heavy Beautiful Nottingham I<ace Curtains weight, hard woven; Medallion, 54 inches wide, lu.tlon hole stitched l'doral and ali-wver desii ns in around edges Extreme length 3^ I Combinations of Green, Tan, yards, in beautiful patterns. Regular I T> -i ?. , r . ... I Red, &c.. oft. x 12 ft. price per pair #3.00, special price I ,,, y per pair $1.75 I Ertch *^B FREIGHT PAID | If you order amounts to $10.00 or more. Remit with Post Office or Express Money Order. Checks out of Columbia cost 15c. Exchange, besides delay. Ths Lion Furniture Co.,I 1624 Main St., Columbia, S. C. i * WRITE FOR BEAUTIFUL CATALOGUE. J i 1 , , * v i.' \.-viV ' wffiSaM Grand July Clearance Sale! We have too many summer goods, and rather than carry them over we are going to make the price on them RED HOT. This sale commences Friday 1 2th, and includes all colored summer Dress Goods, Colored Parasols, Ladies'Slippers, Men's Straw Hats, Ladies' Hats and Flowers, Summer Clothing, Men's Low Quarter Shoes. We sell Domestic Sewing Machines $25.00, New Defender Drop Head Sewing Machine $ 1 7.93, Machine warranted 20 years. Just received our 32nd car, making 3,555 bbls. choice Tennessee Flour, and while it lasts goes for best patent $5.35, half pat. $4.90. Every barrel guaranteed to give satisfaction. Moseley Bros., PROSPERITY, S. C. CALL ON Brooddus ? Ruff AT THE 1 B ; HERALD & NEWS FOR Box Paper, I Tablets, Pencils, I Pens and Ink, I Soaps, i Fine Extracts, I &c., &c. I In fact anything you need along that line. 1 ALSO J CIGARS AND TOBACCO. 1 Don't forget, to call on them. i They are also agents for Laurens Steam 1 Laundry. : Prescription Materials ; m Which we use are without exception the purest grade. 2 We believe in PURITY. * We constantly preach PURITY. , We always practice PURITY v/hen preparing medi 1 ci:,es. * w PURITY counts, and counts for much, in medicines. 5 ^ Ask vour doctor. $ 5 MAYES' DRUG STORE. VERY LOW RATES . . . TO . . . NORFOLK AND RETURN Account Jamestown Ter-Gentennial Exposition . . . VIA . . . SOUTHERN RAILWAY Season, Sixty Day and Fifteen Day Tickets on sale daily, commencing April 19th, to and including November 30th, 1907. Very low rates will also be made for MILITARY and BRASS BANDS in uniform attending the Exposition. STOP OVERS will be allowed on Season, Sixty Day and Fifteen Day Tickets, same as on Summer Tourist Tickets. For full and complete Information call on Ticket Agents Southern Railway, or write R. W. Hunt DivlsionJPass.jJAgent. Charleston, S. C i i' torn