2. The capitalization of the railroads of these United States is now, according to Poor’s Manual of Railroads, the universally recognized authority, about $18,800,000,000—Eighteen billion eight hundred million dollars!
3. That capitalization is admittedly twice the value of all the tangible values—trackage, rolling stock, terminals, shops and other—owned by the roads. In many instances the capitalization of a road is easily three times the value of its tangible property.
4. Most of these railroads were built with borrowed money, covered by bond issues, and the payment of the bonds met from the earnings of the roads, or by new issues of bonds, payment of which has been, or it is intended will be, met from earnings. In view of this method of financing construction and equipment, it is well known in informed circles that the present capitalization of these railroads is ten or twelve times the actual cash ever invested in them—that is, cash other than that collected from the people for freight, passenger, and other service rendered—rendered at rates unscrupulously excessive. Some of the best informed people have gone so far as to say that all of the stock and a considerable part of the bond capitalization of the nation’s railroads is water.
5. There are a number of express companies in this country. The express business of the country, however, is controlled by six companies—the “Big Six.”
6. The express transportation (land) is wholly by railroads. The railroad companies, and men owning large or controlling interest in railroads, own a large majority of the “Big Six” stock capitalization.
7. For most of the express company stock owned by railroads, no cash consideration whatsoever was given. For the stock, a railroad company gave to some express company a monopoly of the express business on its line or system of lines of road.
8. The express companies, in addition to any stock bonus they may have given for the monopoly of the express business on a rail line or system of lines, pay to the railroads on which they operate forty to fifty-eight per cent of the gross receipts from the express business handled.
9. The railroads furnish cars free to the express companies. They also furnish depot accommodations and facilities for storing and handling express shipments. In some instances, as much as 90 per cent of the handling of express shipping is done by railroad employes.
10. There are thirty-seven directors in the controlling express companies. Of these, thirty-two are also directors in some one or more railroad companies or are large owners of railroad stocks and bonds.
11. Practically no cash investment whatsoever was ever made in establishing or organizing an express company, nor in equipment to conduct its business. Every dollar of value there is in equipment and other tangible assets of the express companies today—and hundreds of millions besides—has come from the people—has been taken from the people for handling their express business at rates ranging from two to five times the actual cost of handling.