. Electric railway journal . could very properly have control of the de-termination of the rate for such charge. He was alsofirm in the conviction that if the public was onceshown to its satisfaction that the fare charged for aride represented the actual cost of the service plus afair return on the legitimate investment, and that nopart of it went toward dividends on watered stock, itwould willingly pay whatever fare was necessary com-mensurate with the service given, yet he believed thepublic might be inclined to discredit the statement ofthe facts if made by the company, and that the federal
. Electric railway journal . could very properly have control of the de-termination of the rate for such charge. He was alsofirm in the conviction that if the public was onceshown to its satisfaction that the fare charged for aride represented the actual cost of the service plus afair return on the legitimate investment, and that nopart of it went toward dividends on watered stock, itwould willingly pay whatever fare was necessary com-mensurate with the service given, yet he believed thepublic might be inclined to discredit the statement ofthe facts if made by the company, and that the federalcommission would do a great deal toward convincingthe public, if it saw fit to corroborate this as a generalfinding. Another interesting point of Mr. Newmans testi-mony and one on which he was closely questioned by thecommissioners, was that in a general financial reor-ganization, when it follows insolvency, a great partof the common stock must be wiped out of old securities must be cancelled and new issued to. rOUR MEN ACTIVE IN THE PRESENTATION OF THE RAIL-WAYS CASE IN WASHINGTON: J. W. WELSH, B. , L. S. STORRS AND JOSEPH K. CHOATE represent sound value as invested in the property. Inthis process, it was unfortunate, but the holders of thelower grade stocks would have to be losers, for themost part. In connection with such a plan, however,he pointed out that it was not always necessary to treatthe senior securities at their full par value, since theirpresent-worth value was often much less than that,and that it was often proper in a reorganization forholders of the junior securities to retain some as to the degree of assistance which mightbe realized from a zone fare system or the use of one-man safety cars, Mr. Newman thought that eitherwould be a help but not a sufficient help to allay thepresent march toward bankruptcy. They do not offera solution to the present situation. He said there wereseveral places on the properties he repres
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