EXCESS OF CAPITAL OVER COST. 



333 



constantly being made, and paid for out of current receipts. It is 

 quite impossible for the committee to obtain accurate information on 

 this point, without going into a detailed investigation of the accounts 

 of the several companies extending over a long series of years, and 

 involving in many cases the cross-examination of reluctant witnesses, 

 which would have consumed the entire time of the committee, to the 

 exclusion of all other matters. Enough is known of the extent and 

 vicious effects of stock manipulations to justify the adoption of 

 prompt and efficient means for their prevention in the future. 



Assuming the estimates of three most important railways to be 

 approximately correct, we have an excess of capital over actual cost, 

 on these three lines, as follows: 



Making a total of over $195,000,000, on which to pay a dividend 

 of ten per cent, per annum, the commerce between the west and the 

 east must annually contribute over $19,000,000. In the presence of 

 such facts as these, and with no assu/ance that the evils of stock in 

 flation are to be restrained in the future, it is not surprising that tiie 

 murmurs of discontent have swollen into a storm of popular indigna 

 tion, which will only be appeased by a thorough and radical reform, 

 or by opening up new channels of commerce w 7 hich shall relieve the 

 public from absolute dependence upon those, which by reason of 

 stock speculations, are rendered incapable of performing the service 

 required at reasonable rates. 



The following general summary of the conclusions and recom 

 mendations of the committee are respectfully submitted: 



1. One of the most important problems demanding solution at the 

 hands of the American statesman, is, by what means shall cheap and 

 ample facilities be provided for the interchange of commodities be 

 tween the different sections of our widely extended country. 



2. In the selection of means for the accomplishment of this ob 

 ject, Congress may, in its discretion, and under its responsibility to 

 the people, prescribe the rules and regulations by which the instru 

 ments, vehicles, and agencies employed in transporting persons and 

 commodities from one State into and through another, shall be gov 

 erned, whether such transportation be by land or by water. 



3. The power &quot;to regulate commerce&quot; includes the power to aid 

 and facilitate it by the employment of such means as may be appro 

 priate and plainl} r adapted to that end; and hence Congress may, in 

 its discretion improve or create channels of commerce on land, or 

 bv water. 



