The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-08-23
WAGGENER TAKES HAND
Atchison Attorney Discusses stubbs'
Railroad Reforms.

Bale p Waggener, of Atchison, is
taking hand in the Stubs letter writ
! ing controversy. He has prepared an
answer TO Mr.. Stubs suggestion that
[allroads be required to operate under
federal charters, and winds up with
I series OF questions to Stubs. This is
1Ar. Waggener's letter:
AS remedy for the evils of over
capitalization, Mr.. Stubs suggests that:
A federal statute providing that ev-
! cry corporation engaged in interstate
business shall secure a federal charter,
: anu providing in that charter that no
stocks, bonds or securities can be is
sueo without the approval and under
me greet supervision Of the department
This suggested remedy lacks rne
merit Of originality. 1t was exploited
many years ago, and rejected by re-
formers and economists as not only i'm
pfactlcable, but. in the light of the
plan might work as to all companies
hereafter organized to do interstate
business, but how would it operate as
70 existing corporations engaged in in
terstate business?
Does the distinguished Kansas
statesman imagine that congress could
pass valid law that would compel tne
Atchlson, Topeka & Santa Fe Railway
company to surrender its state organi-
zatlon and reincorporate under the fed
eral law? Could the federal govern
ment, by law, compel the bondholdsrs
ana stockholders of that company to
surrender their bonds and stock, and
accept IN lieu thereof a smaller per cent
81 Donu and stock in a new company
what would Mr. Stubs do with that
Clause of the constitution which pro-
Woes that no person shall be deprived
OF lie, liberty or property without due
process of law; nor shall private pro-
perty be taken for public use without
just compensation If his remedy
llons tand no sane man not candi-
cate Tor Office would contend that it
could be- would capital be invested in
such federal enterprise, in competi-
ton with existing corporations not SO
hampered and restricted?'
Mr.. Stubs says:
The remedy for over and fictitious
capitalization, as we'll as the cornbina-
ton and the consolidation of corpora
tons Tor the purpose of destroying COM
pelltlon seems plain and clear to my
mind, and am of the unqualified opin-
ION tnat the Kansas delegation in con-
gress should advocate and If possible
secure the enactment of a federal stat
ute providing that every corpora ton
engaged in interstate business shall Sc
cure federal charter, and providing
IN that charter that no stocks, bonds
or securities can be issued without the
approval and under the direct superVis
ION OF the department in charge. The
charler might also include among other
conditions anti-discriminatio and anti
consolidation features, if, after careful
Investigation, such provisions were
deemed necessary and advisable, the
charter to be revoked on violation of its
terms or conditions
In view of the fact that Mr.. Stubbs
IS of the unqualified opinion that the
Kansas delegation in congress should
ADOPT his remedy, it seems presumptu-
Gus for me to question such eminent
authority; but I am constrained to be-
Heve that some one has imposed upon
the credulity of Mr.. Stubs.
LAS questions seem to be popular "a
Kansas, [ should like to submit the
following to Mr.. Stubs, because. in |
view of the fact that his remedy has |
his unqualified. approval, there may |
be something in (which the ordinary |
mind cannot comprehend.
'First-If his remedy is adopted /
how would he divest the Santa Fe
company, for instance, of its present
state franchise2
"Second-How would he deal with |
the present bona f1de bondholder and I
stockholder?
'-rhird-would he conhscate their
stock and bonds?
"Fourth-If not, would he have the
government pay their market value?
F1fth-If the government paid
their market value, would it not come
out of the people?
adopt his remedy would that not
necessarily withdraw such corpora
tons from state control7
SEVENTH all these corporations
were Withdrawn from state control,
what disposition would Mr. Stubs
suggest be made of the Kansas
demagogue? His occupation would
be gone. What other pretext would
he have to deceive the people, and get
into office? Evidently Mr.. Stubs, in
his suggested remedy has overlooked
this potential factor
.Eighth-If the Stubs remedy is
applied, what will he do about the
subject of taxation? VIII the state
have the right to tax. as now?
These are few questions which I
should like to have Mr.. Stubs answer
before the next legislature meets. AS
state senator. I shall be called upon
to vote for a United States senator. If
the remedy suggested by Mr.. Stubs
is his platform=if he were United
States senator he would attempt to
pass such a law=the people ought to
understand it It may be that he has
struck the keynote of the entire situa-
ton. It is certainly more feasible
than house bill No. sos. introduced by
Mr.. Stubs in the house of 1903, in
which, under the guise of erecting a
in honor of the old SOL
diers at Lawrence he attempted to
have the state appropriate 100000 b
for gymnasium. Yours very truly.
eB P. WAGGENER.
"Atchison, Kan, August %"