The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1907-06-01

favor the honest railroad manager we
should seek to discourage the activi-
ties OF the man whose only concern
with railroads is to manipulate their
stocks. The business of railroad or
kept entirely distinct from investment
or brokerage business, especially Of
the speculative type, and the credit
and property of the corporation should
be devoted to the extension and bet.
terment of its railroads and to the
development Of the country naturally
tributary to the lines. These prin-
ciples are fundamental. Railroads
should not be prohibited from acquir-
Ing connecting lines, by acquiring
stocks, bonds, or other securities Of
such lines; but it is already we'll set
tied as
Contrary to Public Policy
to allow railroads to acquire control
over parallel and competing lines Of
transportation. Subject to first giving
to the government the power of super
vision and control which I have advo-
ed so that railroads may be permitted
and encouraged to make traffic agree
ments when these are in the interest
of the general public as we'll as Of the
railroad corporations making them.
These agreements should of course be
made public in the minutest detail
and should be subject to securing the
previous assent of the Interstate COM
merce commission. .-.~-. F..
The movement. to regulate railways
by law has come to stay. The people
Of this country have made up their
minds-and wisely made up their
minds-to exercise a closer control
over all kinds Of public service cor
porations, including railways. Every
honestly managed railway will gain
and not lose by the policy. The men
more
Anxious to Manipulate Stocks
than to make the management of
their roads efficient and honest are the
only ones who have cause to oppose it.
We who believe in steady and
healthy progress stand unalterably
for the new era of the widest publicity
and Of fair dealing on the part of rail-
roads with stockholders, passengers
and shippers. We ask the consent of
no man in carrying out this policy;
but we gladly welcome the aid of
every man in Derfecting the law in It's
details and in securing it's enactment
and the faithful observance of it's wise
provisions. We seek nothing revolu-
tionary We ask for such laws as in
their essence now obtain in the staid
old commonwealth Of Massachusetts;
such laws as now obtain in England.
The purpose Of those Of us who so
resolutely believe in the new policy,
in its thorough carrying out and in
it's progressive development is in no
sense punitive or vindictive We
would be the first to protest against
Any Form of Confiscation
Of property and whether we protested
or not I may add that the supreme
court could be trusted in any event to
see that there should be nothing done
under the guise of regulating roads
to destroy property without just COM
pensation or without due process of
law. AS a matter of course we shall
punish any criminal whom we can
convict under the law: but we have
no intention of confounding the inno-
cent many and the guilty few by any
i'll judged and sweeping scheme of
vengeance. Our aim is primarily to
prevent these abuses in the future.
Wherever evil doors can be they shall
be brought to JUSTICE; and no Grim
inal, high Or low, whom~we can reach
will receive immunity. But the rights
of innocent investors should not be
jeopardized by legislation or execu-
tive action; we sanction no legislation
which would fall heavily on them, in
stead of on the original wrongdoers or
Beneficiaries of the Wrong.
There must be no such rigid laws as
will prevent the development of the
country and such development can
only be had if such investors are Of
fered an ample reward for the risk
they take. We would be the first to
oppose any unreasonable restrictions
being placed upon the issuance of
stocks and bonds, for such would SIM
ply hamper the growth of the United
States; for a railroad must ultimately
stand on it's credit. But this does not
prevent our demanding that there be
lodged in the government power to
exercise a jealous care against the
imitation Of securities and all the evils
that come in it's train -... .
There has been much wild talk as
to the extent of the overcapitalization
of our railroads. The census reports
on the commercial value of the rail-
roads of the country, together with the
reports made to the Interstate COM
merce commission by the railroads on
their cost of construction, tend to
show that as whole the railroad
property of the country is worth as
much as the
Securities Representing 1t
and that in the consensus of opinion
of investors the total value of stocks
and bonds is greater than their total
face value, Notwithstanding the "wa-
ter" that has been injected in partic-
ular places.
Ample provision should be made by
congress to enable the interstate COM
merce commission, by the employment
Of a sufficient force of experts, to