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HOKE SMITH’SGTHAT ADDRESS
Leading newspapers throughout the
country continue to comment upon the
speech of Governor-elect Hoke Smith,
that was delivered at the annual meet
ing and banquet of the Cincinnati Re
ceivers’ and Shippers’ association. In
most instances Mr. Smith’s speech has
met with favor and approval.
The following editorial taken from
the New Orleans Times-Democrat is
an indication of what the press thinks
of the speech:
“The speech of Governor Smith, of
Georgia, at the third annual dinner,
of the Cincinnati Shippers’ and Receiv
ers’ association can not be classed
with the commonplace utterances with
which the public is too often regaled.
It was not the speech of a man who
‘understands transportation’ from the
standpoint of railroad managers. But
it was emphatically the utterance of
a man who understands one aspect
of the question w’hich the captains of
finance have apparently forgotten—that
is the essential and unsurrender
ed rights of the public with respect to
public utilities to which the state has
delegated such extraordinary and im
portant powers.
“It is well, in these days when we
are having so many demonstrations
that the manipulators regard railroads
as mere pieces of private property, to
hark back occasionally to arst prin
ciples. The process is full of instruc
tion for both people and financiers.
The latter will find that the public has
many rights it may assert without
being charged in any sense with ‘hos
tility to the railroads.’
“The public will understand better
the sound legal and equitable basis
on w’hich insistence for reasonable
rates and the abolition of all discrim
ination stands. Both may be brought
to understand that the only final solu
tion possible short of government con
trol is one which recognizes and re
spects the fundamental rights of both
sides; in brief a solution informed by
the principles enunciated in the follow
ing excerpt from a federal supreme
court decision quoted by Gov. Smitlr:
“‘A railroad is a public highway,
and none the less so because construct-
THE AMAZING WEALTH OF OUR UNCLE SAM
Stupendous Figures Giben Out by Census "Bureau as to National Wealth—Statement in Detail.
(By Associated Press.)
Washington, March 23. —The total
estimated value of the national wealth
in 1904 was $107,104,192,410, according
to a special report issued today by the
census bureau on wealth, debt and
taxation, which represents an increase
in the four year period from 1900 to
1904 of $18,586,085,635. This advance
in national wealth has no parallel in
the history of the United States ex
cept the decade from 1850 to 1860. In
1850 when the first estimates of the
national wealth were made the figures
were only $7,135,780,228, The most
potent cause for the increase in the
nation’s wealth from 1900 to 1904, it is
stated, was the reaction from the low
price period of depression from 1893
to 1896. The annual increase of wealth
per family from 1890 to 1904 was $lB2.
The various forms into which the na
tion’s wealth is divided, with their
vaulations, are as follows:
Real property and improvements tax
ed $55,510,228,057; real property and
improvements exempt $6,831,244,570;
live stock $4,073,791,736; farm imple
ments and machinery $844,989,863;
Made to the Receivers and Shippers of
Cincinnati.
jgg. ■IIKs:
. <£a|M|L
il -
ed and maintained through the agency
of a corporation deriving its existence
and powers from the state. Such a
corporation was created for public pur
poses. It performs a function of the
manufacturing machinery, tools and
implements $3,297,754,180; gold and sil
ver coin and bullion $11,998,603,303;
railroads and their equipment sll,-
244,752,000; street railways $2,219,966,-
000; telegraph systems $227,400,000;
telephone systems $585,840,000; Pull
man and private cars $123,000,000;
shipping and canals $846,489,804; pri
vately owned waterworks $275,000,000;
privately owned central electric light
and power stations $562,851,105; ag
ricultural products, $1,899,375,652; man
ufactured products $7,409,291,668; im
ported merchandise $495,543,685; min
ing products $408,066,787; clothing and
personal adornments $2,500,000,000;
furniture, carriages and kindred prop
erty $5,750,000,000.
The total public indebtedness of
continental United States in 1902 was
$2,789,990,120, and the total per capita
indebtedness was $35.50. The total in
debtedness of the national government
for the same year was $925,011,637,
and the per capita indebtedness was
$11.27. The indebtedness of the United
States government is its gross indebt
edness less cash in the treasury. The
WATSON’S WEEKLY JEFFERSONIAN.
Gobernor-Elect Hoke Smith of Georgia.
state. Its authority to exercise the
right of eminent domain and to charge
tolls was given primarily for the bene
fit of the publiclf a railroad
corporation has bonded its property
total indebtedness of continental Unit
ed States in 1890 was $1,989,112,842, of
the national government was $851,-
912,752, and the per capitas were $31.76
and $13.60, respectively. In 1902 the
annual interest charge on the public
debt of continental United States is
shown to have been approximately
$115,206,558, or an annual payment of
$1.46 for each individual.
In Great Britain the per capita in
debtedness of all classes, national and
local, was 3.93 times that of the United
States; in France, 4.86, and in Italy
2.25.
The assessed valuation of property
subject to advalorem taxation has in
creased from 1850 to the present time,
but it has not kept pace with the
increase in the actual national wealth.
The total assessed valuation of prop
erty in 1902 was $35,338,316,833. while
in 1890 it was only $25,473 173,418. The
estimated true value of all property
in 1902 was $97,810,749,590, against
$65,037,091,197 in 1890. The total levies
of advalorem taxes were in 1902 $724,-
736,539, and the tax rate was per SIOO
of estimated true value, 74 cents.
for an amount that exceeds its fair
value, or if its capitalization is largely
fictitious, it may not impose upon the
public the burdens of such increased
rates, as may be required for the pur
pose of realizing profits upon such ex
cessive valuation or fictitious capital
ization The public can not prop-
erly be subjected to unreasonable rates
in order simply that stockholders may
earn dividends.’
“Governor Smith thinks additional
powers should be conferred on the in
terstate commerce commission. ‘Bond
and stock issues,’ he declares, ‘should
be submitted for their approval, and
none should be permitted unless the
money derived from their sale is to
be spent upon the property made
liable for them. Transportation com
panies should not be permitted to load
down their properties with stocks and
bonds for speculative purposes.’ Gov
ernor Smith here touches upon one
of the most difficult problems connect
ed with the whole question. There
is no doubt that a large part of the
outstanding bond issues of many rail
roals, based on their present income
producing capacity, represents nothing
more than the capitalization of the
public’s patience and long suffering.
Some way should be found to prevent
resort to this familiar device of high
financiers. But whether this can best
be done by lodging the power of direct
prohibition in a body like the interstate
commerce commission is open to ques
tion. Perhaps, after all, the best meth
od of accomplishing the desired re
sult would be for the government and
states to devote themselves just now
mainly to the task of securing reason
able rates —rates whose reasonable
ness is determined by a reference to
the value of the property and not the
capitalization. Once such rates are se
cured, we have no doubt roads will
find it difficult to float merely specula
tive bond issues, not intended to pay
for improvements, and it is more than
probable a re adjustment of the enor
mous issues outstanding would be nec
essary. Such a process would not be
concluded, however, without violent
wrenches.’’
WITHOUT A PRECEDENT.
The par value of all railroad stocks
has been ascertained, says the Birm
ingham Age-Herald, to be $6,554,000,-
000 —six and a half billions, in other
words. The decline that began last
December has brushed away two bill
ions of this amount, leaving the act
ual market value of the stocks of the
country’s railroads at four and a half
billions of dollars. In other words, the
scarcity of money and political condi
tions have operated without special
legislation to let a great deal of the
water in railroad stocks flow out in
one big and ample popular crevasse.
THE DAILY WRECK.
Lloyd’s mournful motto, “Every day
a ship is lost,” will have to be changed
to suit American conditions before
long. “Every day a train is wreck
ed’’ will be the version here, unless
the ghastly procession of accidents is
stopped.—New York Tribune.
In the last ten years this country’s
iron output has increased 162 per cent.
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