capitalization and the returns thereon, occurs the following paragraph:—
“Neither the rate of return actually received on the par value of American railroad bonds and stocks to-day, nor the security which can be offered for additional railroad investments in the future will make it easy to raise the needed amount of capital. The ratio of interest and dividends to outstanding bonds and stocks of American railroads is not quite 4½ per cent. In each case the average ratio of dividends to the capital of national banks is between 10 and 11 per cent. There is a widespread belief based on imperfect examination of the evidence that the amount of capital needed for the future development of our railroad system is small in proportion to that which has been required in the past; that the profits on such added investments of capital are reasonably well insured, and that we can therefore fix attention predominantly if not exclusively on the needs of the shipper without interfering with the necessary supply of new money from the investors.”
