“Certainly,” replied that gentlemen. “I have nothing to conceal. The railroad lines of this country, especially the transcontinental lines, were built when material and labor were much higher than now, and some of them when gold was at a high premium. Stock and bonds of many roads have been watered, and in paying present market prices for them I shall probably pay much more than the sum for which the roads could be duplicated if constructed honestly and economically at present cost of labor and materials, and allowing nothing for subsidies, bounties, stealings, and profits of speculators, contractors, and legislators. But it would not, I think, be right to punish present holders of stocks and bonds for the sins of their predecessors in interest, and I therefore propose to pay the present inflated value of these securities. I shall not, however, attempt to make the reorganized road carry the burden of paying interest and dividends upon the sums which I shall pay.” “What do you estimate to be the present market value of the roads you propose to purchase, Mr. Morning?” “At present market rates, and I shall pay no more, the total amount that will be required to buy in both stocks and bonds, will be, in round numbers, $150,000,000. I am advised by experts that the cost of widening roadbed and bridges, and laying additional iron, so as to make four tracks from New York to Kansas City, and a double track from the Missouri River to the Pacific, will, with the necessary buildings and shops, be about $70,000,000.” “Then the proposed line, when completed, will have cost you about $220,000,000?” “Exactly, less the sum which may be received for rolling stock, which I propose to sell. But I am informed by my engineers that a similar line might be built now for $150,000,000, and I therefore take $150,000,000 as the actual value of the roadbed, station buildings, and shops for repairs, and I estimate traffic charges upon that basis.” “Why do you sell the rolling stock? How can a road be used without locomotives or cars?” “I propose that the company I will cause to be organized shall, except in certain contingencies, run no trains whatever on the road except repair trains. The roadbed will be open at uniform tolls to any person, firm, or corporation who may wish to run trains upon it. The tolls will be fixed upon such a basis as will provide means sufficient to keep the roadbed up to the highest standard, and pay five per cent per annum upon the actual value of the road, which, in the first instance, will be fixed at $150,000,000.” “Will not the value of the road advance, Mr. Morning?”