The Montgomery advertiser., 1905-01-25
HOLDERS OF STOCKS
WILL URGE CONSERVATIVE LEGIs-
 LAYTON IF ANY.
Representatives of Life insurance Cons panies Will Appear Before Com Kaittee Of the Senate to Plead
 fer Moderation.

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 Washington, Jan. 24.--(Special. )-- The disposition on the part of the Sem ate Committee to deal conservatively with railroad rate-fnaking legislation has been strengthened because of the opposition manifested by the holders of railway stocks and bonds, who be- lieye their interest to be threatened. The legal representatives of some of the largest life insurance companies who hold millions of dollars worth of these securities are in the city, but have not yet apeared before the Com mittees.
 Daniel Davenport. of Bridgeport, Conn.,, representing the Association for which is composed of owners of these securities and policy holders in life and fire insurance companies whose as- sets are largely invested in them, will be heard by the Senate Committee probably within a few days. It is un- derstood Mir. Davenport's communi- catiol to the Committee. In which he presented the interest of his clients as che actual owners of the roads. has been forwarded to the White House for President Roosevelt's considera- ton.
 In discussing this feature of the case today. Senator Elkins, Chairman of the Committee said:
 "A careful examination into the question of rate legislation will elicit the fact that perhaps more people or at least as many persons are directly concerned than in any other class of legislation which might possibly be projected. The fact Is that the pro posed legislation will affect every man, woman and child in the country and the Amount of capital and distributed investments which are to be touched Is almost beyond calculation.
 Now in this connection I consider the position held by the Insurance companies of the United States, with their thousands of policy holders, all directly affected as one of great inn portance. If any one should take the time to look into this situation and inyestigatgate 1t thoroughly--the rela- tions between the insurance companies and the railroads of the country-he could best appreciate it. What are the facts? They are that the big in- surafce companies, with their millions of patrons, hold hundreds Of millions of dollars worth of railroad securities which may be affected by proposed legislation.
 1T cite for instance the Prudential Company which carries a total of some
 
 a part of it's assets. Again the Mu tual Company holds some s40.o00,000 of the same sort of investments. What would be the result as affecting these concerns therefore if Legislation were enacted calculated to disturb railroad values. In the first place these bonds might depreciate in value. The insurance companies assets would correspondingly shrink. Where would fr1. A persons holding policies in the com panies thus affected. Every man who held an insurance policy would no doubt feel the thrust. Wives of men who hold policies would feel it and even their children would come In for part of the effect from action which might be calculated to be of harmful character.
 This fact obtains generally. have cited the instances of only two com panies, but al lof them practically are of the same class. They hold thou sands and millions of railroad securi- ties which form the base of their finan- cial standing to large degree. Then again there are the national and savings banks. particularly the latter which are holding the same securities as guarantees for deposits
 made with them by the masses of the l country reflect the thrift of the nation. | Many of them own railroad bonds and stocks. Would 1t not be natural if they should be affected by legislation dealing with the general railroad ques-
 tion? Beyond a doubt.
 Again the matter of some fourteen billions of dollars Is invested in the railroads of the country and much of that money represents the capital of individuals who have put their money into railroad stocks, and bonds as a safe investment. Fourteen billions of dollars, 1t may be concluded quite logically. is a vast sum of money and to pass a bill affecting such an amount of investment is not for moment to be considered as matter of day or a month, but the work of great deal of time in order that the question may be delt with conservatively, safely and cautiously.
 Tn fact I cannot imagine of any other proposition which could come be- fore Congress as affecting the interests of more persons than this case. The amount of money Involved, as repre- sentihg business interests and proper ty rights, is beyond measure and can not reasonably be calculated off hand. I am in favor of going slow in this situation. I am opposed to decisive ac- tion at this session and do not favor an extra session. Personally I favor the selection of a Joint Congressional Committee to sit during the summer and frame a measure which shall be reported to the Senate and House next winter when the whole subject may be dealt with deliberately, without haste, with caution and with due regard for the great amount of money and proper ty involved"