Iowa state bystander. [volume] (Des Moines, Iowa) 1894-1916, 1906-10-26

situation It seeks to incur Indebtedness
without limit. Ii Is one thing to grant
u railway companies the right TO borrow
the money needed TO aid In the cOnstruc-
way: II Is quite another thing TO author
lie Il class of railway cVmpallies to incur
unlimited Obligations without respect to
the amount of their stock or the worth
OF their property. ! cannot bring myself
to believe that this species Of special leg
tslat'n IL consistent wifi public welfare.
or necessary to the legitimate develop
men. Of railway property; on on the con-
ale power to issue stocks, and to Incur
Indebtedness. needs regulation rather
than expansion.
The Hubbard bill a. amended was
passed and became Q part OF the law
| Of Iowa. That law provides:
That any railroad corporation organized
under the laws Of Iowa and owning and
| operating q railroad therein. may lease.
troll or operate any connecting extension
Of this said railroad. not parallel or .om-
petins Herewith. In any other state or
territory Of the United States. and to
that end may purchase and control the
stock. bonds or securities OF any such ex.
| tension II not contrary to tho laws OF
! such other state or territory.
Destroyed Effect Of eiii.
Tho Moiesberry bill was intended to
| permit the issuing OF bonds to an uniim-
| lied amour, by the Iowa railroad corpor-
alton. The Hubbard bill was intended to
permit the use OF the money realized
upon these bonds In the purchase Of rail-
| roads elsewhere than In Iowa The
| phrase which was put into the Hubbard
| bill al the suggestion Of Governor Cum
minis was mot PARALLEL OR CON-
PETlNG HEREWITH" which phrase
was NOT in the hill as prepared by the
railroad lobby. and when that clause
| went into the hill In the senate the rail-
road lobby ceased to take further interest
In the measure That clause completely
destroyed the secre, purpose for which
| the hill had heen introduced. There mas
| never been a doubt In the mind OF any
! one familiar with the fact that Senator
Hubbard did not fully appreciate the i'm
portanre or character Of this bill when
he introduced II In the legislature. and
as soon az he discov cred that It was a
| dangerous measure no Joined hea rtily
| with the governor In rendering It HARM
less The hill has sometimes been re-
| ferred to as a merger bill. but the fact
| that no merger has ever been attempted
| or accomplished under the law indicates
that In the form that It was finally
passed II had no force with relation to
| mergers A. the federal courts had just
| declared that the two railroads which II
| Was planned 10 merge are In fact spar
| are, and competing" the bill with that
! added clause was Of no use
No Mergers Under Iowa Law.
II has been represented by the demo-
Gratis and their allies In this campaign
| In Iowa this year that a. q matter of
| fac, under the Iowa law. a. amended by
| the Hubbard hill there have been rail.
| road mergers effected: that. in short. II
| WAS under this hill that the Rock island
| railroad Increased its capital stock and
| organized a new company and purchaaed
| certain railroad properties In Texas and
| Oklahoma. The statement IL absolutely
false The Rock Island did increase lts
| ca pi, al stock and form new compa nv
| In Iowa. under the iowa laws and paid
info the state fees aggregating about s2S.-
nm for this privilege but such acton was
no, taken under the Hubbard bill The
filings were under the old law and might
have been made ten years ago as we'll
| rs four years ago There was nothing
| In the old law to prevent q company
from making an increase in capital stock
ard there was never at any time any limit
| on the size Of corporation under the
Iowa law The Rock Island railroad
1 would have saved itself about ST. 90 II Il
had organized Its new company a year
| before II did This is the only difference
between the new and the old law. As q
matter Of fact the Rock island company
| mas never been engaged In the merger
| business hut has purchased In distant
| states lines with which to make sxten-