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I RAILROAD STOCKS SUPPORTED BY GOOD AND TANGIBLE ASSETS; REPRESENT ACTUAL VALUES In reply to the Indictment to often made against railroads In halls of leg- JslaUon and by public speakers and the vress that the watering of tlielr stocks out of all proportion to their actual rnlno Is responsible for burdensome charges upon the people, the neglect of rolling stork and equipment, resulting In the delay of freights and the de moralization of schedules, the follow lng defense, prepared by a staff con' trlbutor and printed In The Railway World Is Interesting ns affording a fair Idea of the "other side" dt the question: Talk of "Water” Flippant. People talk as glibly about water In railroad stocks as they do about a river overflowing Its banks during a Jan uary thaw, and no doubt many persons, on account of their talkative habits, have come actually to believe that what they say of railroad stocks Is llt- i erally true. No distinction Is made; ' all railroads shares are put In the same class by the unthinking public. This flippant talk, however, Is causing other and wiser persons to ask themselves what constitutes water In stocks, and the more they reflect upon the Inquiry the farther they appear to be from a satisfactory answer. A company may be operated for years without paying anything to Its shareholders In the way of dividends. Yeah after year earnings are appropriated for Improvement^ for second and third tracks, for better ter- I mlnals, for equipment. In fact for the thousand and one requirements of a railroad whose management has a care for Its condition In order that It inny fulfil Its obligations to the pub- .1 lie. ■4, At length as a partial restitution to ■ the shareholders they are given a cer- ■ ' tain proportion of new shares without ■ coat. Is the new Issue water? The W public will say It Is, but the sharehold- I era who have received not a penny of ’ Income upon their Investment will say no. The shareholders will assert that for every dollar of new stock Issued there has been put Into their property out of the earnings three or four dol lars, that there Is good value In tho way of tangible assets back of every share Issued which represents new capital just as much as If the share- . holders hod gone down Into their pock- etc to produce the money required for the Improvements. Thus It is that the new shares represent an actual Invest ment of capital or a large quantity of aqua pura, Just according to the point of view. Investor Worthy of His Income. Just as the laborer is worthy of his hire so is the Investor worthy of an Income upon his Investment. Having been deprived of the Income to which he Is entitled. In order that tho public may be benefited through a diversion of earnings to tkii Improvement of the properly. It follows that the Investor is entitled to be made whole In some mnnner. The simplest way to accom plish this Is by an lasue of stock which Is distributed pro rata among the shareholders without cost. When In future years the company has pros pered so that It may pay dividends the new shares Issued In the above manner are Just as much entitled to receive dividends as art the original i shares for the reason that the new i shares represent capital 'actually ln- 1 vested » y An old method of "watering" stock, not much In vogue now If at all In the financing of railroads, was te Issue shares as a bonus to aid the sale of bonds. In those days railroads were built out of the proceeds of bond sales and It was due largely to this fact that manv railroads had to be reorganized. As an example, the subscriber for a bond of 11,000 would be entitled to re ceive five shares of stock of the par valuo of 1100 each as a bonus. Thus, for each 11,000 paid into the treasury of the company there was Issued 31,600 of securities, of which 1600 might be considered "water" pure and simple. Day of Reckoning Came. There was a day of reckoning for such railroads and when the crisis came the bonded indebtedness had to be scaled down, the rate of interest was reduced, the old shares of stock were canceled and new stock Issued only to such persons as paid assess ments Into the treasury. A multitude of railroads In the West and South, and some In the East havo gone through this process of reorganization by which the water has been thorough. ly squeezed out. Doubtless a careful analysis of each of these roads today would show that there Is no water in their stocks, but In fact there are val uable assets equal to the par value of each Issue. But still the thoughtless man will talk of watered stocks. PORTED—ED PAGE Thursday ..J Chairman Knapp, of the Interstate commerce commission, recognizes this error on the part of the public when he says: "I regard the.C9mmon talk about the overcapitalization of railroads as whol ly Ignorant and mistaken. I believe that In far more Instances than the people suppose a fair valuation at this time would glvo figures exceeding the present estimate. My thought In this connection is, that an cfllcfal valuation of railroad properties resulting, believe It would in most cases. In an aggregate not less than the present par value of the stocks and bonds, would give an assurance and credit to railroad securities which they now lack In many cases becauso of the widespread belief that they represent a large volume of water. I suppose It Is the element of uncertainty which gives opportunity to the gratification of the gambling In stinct. It la difficult for ine to explain the wide fluctuation In many railroad stocks except by assuming that the public la uncertain and apprehensive as to the value they represent." Another Difficulty Met. In an article In "Moody's Magazine” for April, John B. Dalsh writes: "An other difficulty which Is met Is to as certain what Is the proper capitaliza tion. Numerous theories have been ad vanced but no one of them seems to have received the, approval of the courts. In considering this matter some argue that there should be con sidered the original cost less the depre dation, If any, and an addition tor the Improvement; others'argue that the value should be determined by a con sideration of the amount of securities outstanding and their present market value; others argue that the cost of re production Is a safe guide; others say that the matter should be determined by ascertaining the fair market value In the same way as the value of real estate Is ascertained In eminent domain proceedings; 1 others argue that the value as a going concern ought to be considered. Perhaps the real truth, if we could get at It, lies In an appropri ate consideration of all these heads to gether with the constituent elements of each." It must be clear to the reader by this time that the subject of "watered" stocks Is somewhat complex; that all Is not water that trickles. Quite In contrast with the methods noted abovo Is tho policy of some of the larger and most prosperous rail roads of disposing of new stock at a premium. Bliares have been sold out right to present stockholders for cash at a premium of 20 per cent. They have nlafi been given In exchange for collateral trust bonds at a premium of 40 per cent, so that the railroad Issuing the stock was receiving In Its treasury money considerably In excess of the par value of shares Issued therefor, a proc ess just the reverse of watering. Dur ing the past eight years the Pennsyl vania rnltroad, which Is conspicuous for following the policy last noted, expended over 2300,000,000 of capital upon Its roadway and equipment, a large portion of this sum coming from premiums upon stock Issued, from profits obtained through the purchase and sale of the stocks of other compa nies and from appropriations from earnings year after year for extraor dinary expenditures.. Thus the Penn sylvania shareholders have a large equity In the assets over the par value of their shares, an equity which makes talk of water In Pennsylvania stock seem absurd. It a valuation of this company’s assets Is ever made It will nrana ROCKEFELLER GIVES AWAY $2,000,000 TOCHICAGOCOLLEGE Also Transfers $750,000 in Real Estate to His Son. New York, April 27.—With advanc lng age making dally Inroads upon his health, John D. Rockefeller has begun to turn his enormous fortune over his son, and to dispose of his real es tate holdings. This fact was emphasized today by the transferring of real estate Cleveland valued at 3760,000 to John D. Rockefeller, Jr., and a gift of real estate worth 32,000,000 to the Unlver slty of Chicago. be found that there Is 3140 of value back of each 3100 of stock and that the 7 per cent paid as dividends on the par value of the stock Is equal to only 6 per cent upon the actual value of the shares as represented by the capital Invested. There are other companies that will doubtless make as good a showing If a valuation of their assets Is ever made by the government. As to Collateral Trust Bonds. Iconoclasts who are Inclined to scoff at all modern methods of finance have paid their respects to the collateral trust bonds, which they regard as one method of creating overcapitalisation. The Reading-Jersey Central 4s afford a good example of this class of securl- “THE FRIEND8 AT HOME.' But, nevertheless, John Temple Graves Is one of tbs elect. He can not say anything that would spoil him to thousands and thousands of friends and admirers—those who have never heard of the editors out there on the frontier without the light of his presence— Rome Dally Herald. HE IS CONTENT WITH "THE PEOPLE. 1 Again the parties are being led out of bondage to the spoiler. The con trast was scarcely more sharply drawn between Moses and Pharaoh—between John and Pilate. Here Is the hand of the people to John.Temple Graves, the new prophet. Call It Populism or what you may, It la genuine patriotism—the real broth erhood. The nation will now bound ahead—In wealth, science, education and the development of the race—as never before. There Is some Populism In It. Between Bryan and Roosevelt they have It all, but call It American ism. If you please—If It Is more tune ful. The people are marching forward, and with such leaders party organiza tions can no longer obstruct.—Joliet (III.) Dally News. AN APPEAL FOR THE KINGSTON GRAVES, To the Editor of The Georgian: Knowing the warm Southern splrl that exists In you, I desire to call your attention to a paragraph I saw a few days ago In one of our Atlanta papers, stating It as a fact that there was a town within the state of Georgia that contained the burying ground in which there were sixty or more graves of Confederate soldiers, without a head stone or any mark to show whom they were or from where. Is It not n dis grace to the state of Georgia and her dozens that such a thing should exist? That after forty-two years, with all the wealth and money that has been spent by the state for various purposes, she has not seen fit to care for her heroes of the Civil war, burled upon her soli? Take this up and see with your mighty hand and power of your paper that every gravq within the stato unknown and unmarked should have the attention It deserves from the fa, there, mothers, sons and daughters of the heroes of the Civil W{ Yours respectfully, SERGEANT MALCOLM M’NEILL, Forrest Cavalry, Eighteen Miss. Reg. ties. These bonds were Issued to. pay for stock of the Central Railroad of New Jersey, which was bought by the Reading company, and the stock pur chased together with some other col lateral was pledged to secure the cob lateral trust bonds. Because this stock was bought at 3130 per share, a price which seemed high at the time, the cry of overcapitalization was heard when the bonds were Issued. Cei Railroad of New Jersey shares are now worth about 3185 a share, and they sold last year above 323* per Share. The dividend on the stock has been In creased so that the Reading derives an the value of the assets of the Railroad of New Jersey, its large earn ing power and the hlglwnarket value of Its shares, who can truthfully say that there Is any water In the Readlng-Jer. sey Central collateral trust bonds' And they are but a type of similar Is sues sold by many other companies. Open Until 11 Tonight And ready to completely outfit you in stylish, dependable ap parel. Come in and choose a new suit from our Hart, Schaff- ner & Marx and Rogers, Peet & Co. lines. New Shirts We can’t say enough about this shirt stock to make you appreciate its immensity and its excellence. Come and see it. Manhattan shirts—$1.50 to $3.50; other shirts—$1 to $3.50. Best Hat Styles Here You can’t go wrong if you come here for the new hat, for only right sorts of hats are here. Stetsons at $3 to $6; Miller hats at $5; and advance show ings of Panamas and straws. , Daniel Bros. Co. L. J. DANIEL, President. 45-47-49 Peachtree—Opposite Walton St. Ties and Sox See the smart new patterns in 50-cent ties—silk and wash able fabrics. And a great stock of new light-weight fancy sox—25c to $1.00. / Jl 3 Af S & / f f 0. / <3 A f ^ COMPEL. SUCCESS — By Attending— The Dixie Business College, Atlanta, Ga. YOUNG PEOPLE, in these days, cannot succeed in BUSINESS unless skilled in Bookkeeping or shorthand. BUSINESS MEN, in these days, refuse to employ those who constantly need instruction in their duties. THE THOROUGHLY TRAINED BOOKKEEPER AND STENOGRAPHER GETS THE JOB AND KEEPS IT INSURE CERTAIN AND RAPID PROMOTION BY TAKING OUR ' UP-TO-THE-MINUTE COURSES IN BOOKKEEPING, SHORTHAND AND TOUCH TYPEWRITING, BANKING, ETC. Which Are Thoroughly Taught by Thoroughly Trained, EXPERIENCED TEACHERS at The School For Thoroughness. (Corner Peachtree and Mnrietta Sts.) ; ONE HUNDRED STUDENTS ENROLLED, THE FIRST FOUR MONTHS IN HISTORY OF SCHOOL. THE DEMAND FOR “DIXIE” BOOKKEEPERS AND STENOGRAPHERS WAY AHEAD OF THE SUPPLY. DIXIE BUSINESS COLLEGE GRADUATES RECOGNIZED AS TnE MOST HIGHLY TRAINED IN THE STATE. SCHOOL ELEGANTLY EQUIPPED, BEAUTIFULLY 1 LIGHTED, CENTRALLY LOCATED. EVERY STUDENT RECEIVES THOROUGH INDIVIDUAL INSTRUCTION AND ATTENTION. WRITE FOR HANDSOME CATALOG AND SPECIAL RATES TO H. L. Bridges or Bernard C. Ansted, Proprietors. IMMENSE CROWD \J ATISiGTQNA \ Auditorium Packed to Its Capacity When the At lantan Appeared. Special to The Georgian. Washington, Ga., April 27.—The Me morial day exercises held In Waxliing. ton yeeterday afternoon, were con' ceded to be among the most Inter esting ever presented on a elmllar oc casion and the crowd In Washington to hear the address of Hon. John Tern- pie Graves, of Atlanta, could not be accommodated by the large auditorium In which the exercises were conducted. All the stores closed their doors from 12 o'clock for the remainder of the day In honor of the occasion. Editor Graves reached Washington nt o'clock from Greensboro, where he de livered an address In the morning at 10 o'clock. The exercises which were under tlie direction of the Last Cabinet Chap, ter of the Daughters of the Confederacy were commenced at 2 o'clock With the song, "I Am An Old Time Confederate," whtch-wns sung by the veterans. Mr. Graves commenced speaking at 2:16 and for nearly an hour entertained olfe of the largest audiences that has as sembled In the court house auditorium. Editor Graves left Washington at 4 clock,, to be present In Thomson at I o'clock Friday night, where he de livered Ills third address In one day. CROWD WAS TOO LARGE FOR THE AUDITORIUM. Greensboro, Go., April 37.—Hon. John Temple Graves addressed the largest audience ever assembled In Greens boro yesterday, the occasion being Me morial exercises. 8o great was the crowd that no auditorium could be found in the city large enough and 3lr. Graves was compelled to speak In the open air from tho steps of the court house. Mr. Graves was at his best and thrilled his large audience by his matchless eloquence. He was Intro, duced by Hon. J. B. Prose as "the silver tongued orator of the United BtltN." After the address, hundreds of the old veterans, as well as the ladles, rushed forward to shake hands with Mr. Graves. For twenty minutes he held a most enthusiastic reception. Mr. Oraves left here for Washington, where be delivered a memorial address In the afternoon . Veterans’ Graves Decorated. Special to The Georgian. Buford, Ga., April 2?.—The Daugh ter Confederacy held approprl- memorial exercises at the city cemetery hen yesterday. The address of tbs occasion was made by Rev. A. S. Harris and abort talks were made by a number of the old surviving Con federates who wen pnsent. The graves of those who an burled at the city' cemetery wen decorated with flowers. WOMAN SHOOTS HUSBAND AT RACES Raltlmore, Md., April 27.—During the st I'lmllco yesterday, Mrs. Nina King shot William Dunn, s betting comnilulouer, whose home Is understood to be la Elmirs. She slid she was bis wife. Will Locate In Brunswick. Special to The Georgian. Brunswick, Ga, April 27.—Tl^s Urge cigar factory which Is now located at Jesup, will be nmoved to this city os soon as the change can be brought about. The factory will have a month ly pay roll of 32,000.' GUATEMALAN EXILES PLAN NEW REGIME Mexico City, April 27.—It Is rumored that another revolution Is Imminent In Guatemala, and If It la successful the Guatemalan exiles In Mexico ond Central America expect to organize In thle city a provisional government for Guatemala. LIE IS PASSED IN U. S. SUPREME COURT No bad after effects from drinking all you want of POSTUM FOOD COFFEE “There’s a Reason.” wimMnMnHl Washington, April 27.—In summing up the Herrmann ca*e yesterday before the United Statea supreme court the lie was passed between District Attor ney Baker and Attorney Worthlngtcn. The latter resented an alleged Insinua tion. HAD OPEN KNIFE FOR POLICEMAN P. E. Andrews, a mill foreman who live* at '393 South Pryor street, went home with too much whisky on board Friday at noon and threw all the bed clothing down atalrs. When Call Offi cers Buck and Coker answered a call from Mrs. Andrews, they found an open knife on the bureau, which looked dan gerous. Mrs. Andrews said the knife had been Intended for the "first police- man who came In.” Andrews was locked up at the police station. OOOGOOOOOOOOOOOOOOOOOOOOOO S STUDENTS TIE UP O CONTRARY JUDGES. O O O a Alton, III.. April 27.—Having O O decided In favor of the enpho- O O morn in an oratorical tent at O O Shortllff College, Professor M. O O Magun and E. M. Day, two of the O 0 three Judges, were seized by the O O freshmen, tied on the campus and O O left there until this morning. O O00QOQ0O0O00000000000009QU ROLL OF THE DRUM GIVES YOUTH TO VETS Continued from Page One. fifteen hundred of them In line. That Atlanta has so many of the younger generation In her borders was a fact S mknown to many who saw the little ellows marching with the dignity of true soldiers In the long line of the parade Friday afternoon. Three Generations. As keeping perfect step to the music and with their long lines held In almost perfection, they passed the Confederate soldiers In review, many expressions of praise were heard on every side and repeated cheers burst from the throats of the old veteran*. To Dr. Toepel, physical director of the grammar schools, and who has taken on active Interest In the preparation of the chil dren for participation In the parade, Is due the wonderful showing they made Friday \afternoon. But not only did the appearance of the children prove Inspiring and Im pressive, but tbe whole parade elicited applause At Oakland, where the exerclsee rare held, one of the largest crowds dilch ever assembled on a similar oc casion was present. Not even the par tially cloudy condition and the threat ened rain served to keep the people away, and for hours before the head of the parade died between the massive gate posts of the cemetery great throngs of people crowded the spacious area on the Inside. At Oakland Cemetery. The speakers' stand was prepared upon the base of the monument to the Confederate dead. Chairs were placed on either aide of the stand for the use of the prealdent and ladles of the Memorial Association and others who were to take part .In the exerclee*. Around the base of-the monument an Inclosed space woe reserved for the veterans of the Confederacy. After a selection rendered by Wede- meyeris band. Mrs. Edward G. Warner, president of the local chapter of the Daughters of the Confederacy, an nounced that the crosses of honor could not be delivered on account of the rallure of the factory to eupply them at the proper time. Orand Marshal Joseph F. Burke then Introduced the orator of the occaalon, Hon. John T. Bolfeulllet, of Macon. Address of the Day. Mr. Bolfedlltet's address was deliv ered In the characteristic style of the eloquent Georgian that he la. With a fund of adjectives scarcely paralleled he paid glowing tribute to the women of the South who, during the dark days of bloodshed and carnage and the atjll darker days of the reconstruction period, Inspired and encouraged the defeated and all but disheartened war riors to beat tbe sword Into plowehares and to build up the new South from the ashes of the old. Jn Inspiring colors he pointed the picture of the Incomparable Lee, . JE IN BLAZE,- MUSICIANS ESCAPE The Love Family Awakened Barely in Time. The family of H. Love, member* of the well known Love band of musi cians, had a narrow escape from burn, lng Saturday morning at 4 o'clock Is a Are that almost completely de stroyed their home, a two-story framt dwelling at. 16 Highland avenue. The family Was awakened by neigh bors after the flames had gnlned greal headway and when the roof was al. most ready to fall In. Tho frightened musicians rushed through thick vol umes of smoke Into tho street and had time to eave only a few of their ef- fecte. By the time the firemen arrived oe tlje scene, the house was almost de. strayed, as the blaze had been burn ing for some time before discovered. The fire Is supposed to have started In'the kitchen. dauntless arid victorious In the blood) battles around Richmond, when h< fought with the ferocity of the lion at bay and hurled back, crushed and broken, the attacking forces of McCiel. Ian. He pictured the redoubtable Jack- eon, as he recklessly rode at the head of hie column and with unparalleled daring attacked whole armies with but a handful of men. But tribute wee not only paid th< leaders of the famous conflict by the speaker. With eloquent tongue he earn the praises of the men who bora tht ark of the Confederacy upon the points of their bayonets end whose quick and daring execution of the orders of theli leaders made possible the longest struggle against overwhelming odds that history records. The address of Mr. Bolfeulllet was frequently applauded and was one ol tbe ablest erer heard In Atlanta. The exerclsee were concluded with the song, "God Be With You Till W< Meet Again," after which the bene diction wae pronounced. After the salute of twenty-one guns was fired, taps wee sounded over the graves of the sleeping soldiers by Fas Wilson, of the Governor’s Horse Guard. Aged Negro Found Deed, Special to Tbe Georgian. Griffin, Oa.. April 27.—Mack Wil liams, an ante-bellum negro about 10 years of age, was found dead In a shal low brunch In tbe northeast corner of tlie county. v 4% Interest Compounded, Allowed In Our SAVINGS DEPARTMENT On and After January 1,1907 TH E NEAL BANK E. H. THORNTON, President. W. F. MANRY, H. 0. CALDWELL, F. M. BERRY, Vice President. Cashier. Ass t Cashier.