Reaping the Whirlwind

Bryan's World Herald emphasizes the stock watering and financial schemes of railroads that have gone bankrupt. Bryan's campaign consistently points to the railroads as bloated and overvalued in stocks and, as a consequence, threatening to ruin the reputation of the United States in world financial markets.

BRYAN'S APPOINTMENTS

Union, Friday, October 26, 2 p.m.
Plattsmouth, Friday, October 26, 8 p.m.
Springfield, Saturday, October 27, 2 p.m.

REAPING THE WHIRLWIND

The committee of experts which spent a number of months in this country investigating American railways as investments has made, its report to the German government, and it is of a decidedly unfavorable nature, showing that the confidence of foreigners in American securities has been badly shaken, indicating that the dishonest railway promoters who sowed the wind have now to reap the whirlwind.

The natural wealth and progressive development of this country coupled with its freedom from political complications such as threaten European countries, naturally operate to bring here a vast amount of capital, but the dishonest methods of Wall street financiers in imposing questionable securities upon foreign investors has destroyed confidence in the American methods until it is clear that there is imperative need of legislation to work reform. Watering of stock and like flagrant offenses must be made impossible. Indeed, American methods of building railroads must be reformed.

The New York Herald, commenting upon this, says that "ever since the Pacific railroads were subsidized by the government and built by the Credit Mobilier from the proceeds of the bonds, it has been the custom in this country to begin a new railway by selling bonds on it, and the shares in most instances have been thrown in as a bonus. Until the law and public sentiment put an end to such financing as this, and until we have railway directors who will direct and honest business principles are adopted in the management of our railways, it will be impossible to win back the confidence of foreign investors."

There must be an end of wild cat securities. Railway stocks when placed upon the market must represent a dividend earning capacity that will be a guarantee to the investor of a reasonable return upon the capital invested. As a matter of a fact, there are today American railway shares selling below par, or at least below their actual value, for no other reason than that the confidence of investors has been destroyed by the nefarious manipulations of their management.