Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-09-04
OUT Of SYMPATHY
WITH PROPOSED
LEGISLATION
In Letter to Railway Journal
President Ripley of Santa Fe
Gives Views on Securities
Matter.


The following letter from Presidenr
r. r. Ripley. of the Santa Fe, pub.
lished in the American Railway Jour.
nal, is Interesting as setting forth the
very decided views of the Santa Fe
man against proposed railway legis:
lation.
Editor RAILWAY Journal:
Dear Sir:-I have yours of the 21st
instant. enclosing memorandum out
lining certain probable legislation dur
ing the next session Of congress-, and
asking for an expression of my views
concerning
l.. Prohibition of railway CONSOLE
dalton when the combinations include
ines that are actually parallel or that
may easily become SO in effect, in
their business relations with each
other.
see no reason for an absolute pro-
hibition of this nature-on the con-
trary, | think there are many cases
where consolidation of parallel lines is
clearly TO the advantage of everybody
concerned, whether as shippers. or
carriers. or producers or onsume
am very clear mat there should be
no actual and absolute prohibition Of
such consolidation. The mos: that
should be done in this line Is to pro-
vide for its approval by the govern
ment before 1t is carried into effect.
.. Prohibition of joint ownership
I'm parallel lines and entire separation
of directorates and official staff. !
I think it is going too far to sepa-
rate by law the directorates and To
say that a man may not represent his
own financial interests on the boards
Of two different companies. Any such
prohibition would be ineffective. If
made, because in practice. should a /
man own large blocks of stock in two !
competing companies, IL is an easy
matter for him TO obtain as his rep
res~entative on the board of one Of the
companies. a man who would be en-
tirely subservient TO his wishes and
virtually represent him and him alone.
3. Permission to pool earnings be-
tween lines. subject to the approval
OF agreements by the interstate COM
merce commission and the filing Of
same with the commission.
think everybody who has given
this subject any study. realizes that
the passage of such an act would be
not only wise. but would be doing
nothing but simple justice.
4. Permission to form and conduct
associations for the pronunciation Of
rates and the issuance Of tariffs.
There ought to be NJ question what
ever about this nor Is there any rea-
son why these associations should re-
luire the approval Of the interstate
commerce commission II is a simple
necessity of the business. I
r.. Prohibition of the unrestricted /
Of securities for extension of old :
ines and construction OF new ones.
.uch securities hereafter to be issued
after investigation n approval by !
government; also the clause for /
the use Of the surplus Of any .
fp tho Ratrahuea Of tho GfnPE nf I Il
other road, unless Il can be clearly v
hown that such surplus Is no re- :
luired for the betterment and main "
of the property. and then Only y
or the purchase Of stock Of cOnnec- =
forming a continuous through !
cute and In no way interrupting the "
or operation of another par
llel line.
| do not believe in such restriction .
I seems to me that a company should :
H. permitted to issue such securities
IS. In the Judgment Of its directors. I
re necessary for %corporaet purposes.
n general the public has little or no
interest In the amount of securities IS
led by railway companies, such Sc
1rities having o effect IN the rela-
Ons of the carrier to the shipper.
nd any attempt on the part Of the
Overnment to regulate the amount OF
securities will be an effort in the
of paternalism and what |
to be unwise restriction. The
jured party In the case OF an over
suance Of securities is the party who {
vests his money in sue securities.
I'd | fail to see that this phase of the
iestion has anything to do with in
commerce., or Is anything In
hich the government of the United
should NEEDLE. I
In general. and as regards the en-
line Of reasoning upon which this X
ggested legislation is based, permit )
@ to say that | am entirely out Of .
mpathy with Il. If. and so long as. :
g government interposes between :
e railroad and its patrons and un- Z
rtakes to protect the latter against :
e former. | do not see what Is gain :
by any further legislation. nor do :
that II is the part OF good gov :
nment to interfere with details so :
ng as II accomplishes by direct I
the limitation of rates. I
truly. +. r. RIPLEY. \