Smyrna times., 1907-06-05
The PRESIDENTS
RAILROAD POLICY
Favors Government Control, But
Doesn't Attack Securities.
CONTROL NEW STOCK ISSUES

Indianapolis, Ind, May 31-Presi-
dent Roosevelt in his aSJress at the
unveiling of the statue of General
Lawton announced definitely his atti-
tude toward the railroads of the coun-
try.
After paying a glowing tribute to the
heroism and efficiency of General
Lawton, the president launched into
the subject OF the railroads declaring
there could be no swerving from the
course that had been mapped out In
the legislation actually enacted, and
that no halt shall be made in the de-
velopment of this policy.
A step backward, Mr.. Roosevelt
said. would mean an outbreak OF the |
radicalism which is most feared. He |
asserted that he sought nothing revO- |
Iutionary, but declared. that the move
ment to regulate railroads by law had |
come to stay.
He declared himself favorable to
traffic agreements when made in the
interest of the people, and opposed to
restrictions upon the issuance OF
stocks and bonds, as a railroad must
stand on it's credit. He said, however,
that the government should have the
power to exercise a jealous care
| against the initiation of securities and
| all the evils that come in its train.
The president said he stood for the
widest publicity and fair dealing on
! the part of railroads with stOckhOld-
ers. passengers and shippers, and de-
clared it to be as much the aim of the
government to protect honest corpora
| tions as to punish those which employ
| dishonest methods.
''One great problem" said the Presi-
| dent. that we have before us is to pre-
serve the rights of property; and these
can only be preserved if we remember
that they are in less jeopardy from the
socialist and the anarchist than from
the predatory man of wealth.
The power of the nation must be ex-
erted 20 stop crimes of cunning no less
! than crimes of violence. There can be
no halt in the course we have deliber-
ately elected to pursue, the policy of as
serting the right of the nation, so far as
| it has the power, to supervise and con-
troll the business use of wealth, espe-
cially in its corporate form.
''rhere must be vested in the Federal
government full power of supervision
and control over the railways doing in
terstate business; power in many re-
spects analogous to and as complete as
that the government exercises over the
] national banks.
1T must possess the power to eXer-
| else supervisiOa over the the future is
suance of stocks and bonds. either
through a national Incorporation (Which
| l should prefer in some similar fash
: ion, such supervision to include the
frank publicity of everything which
y would-be investors and the public at
D large have a right to know. The fed
d eral government will thus be able 70
4 prevent all overcapitalizatiOn in the fu-
= ture, to prevent any man hereafter from
d pundering others by loading railway
6 properties with obligations and pocket
f ing the money instead of spending il il
. improvements and in legitimate corpor
" ate purposes and any man acting il
e such fashion should be held to a crimi
r nal accountability.
- 1T should be declared contrary t,
public policy henceforth to allow rail
roads to devote their capital to any
It thing but the transportation business
l. | certainly not to the hazards of specul8
, ton For the very reason that we de
~ sire to favor the Fof"st railroad man
ager. we should sex % discourage tn
activities of the man whose only con
cern with r"i-oads in 10 manipulat
their stocks
"In providing against overcaptaliza
BY tion we shall harm no human being VIII
is honest: and we shall benefit many
. | for Overca pitalizatiOn often means a
- imitation that invites business panic;
IN always conceals the true relation OF tn
TX, | profit earned to the capital invested
10 creating a burden of interest payment
l, which may rebound to the loss alike
nc the wage-earner and the general pubI
rs which Is concerned in the rates paid b
Ia. shippers: it damages the small investo
no discourages thrift and puts a premium
e on gambling and business trickery.
VI mo state of course. can do for III
IS, railways what the national governmeI
at has already done for the banks, ar
- | that government should do somethir
analogous for the railways. Nation
ys bank stocks are bought and sold large
to on the certificate of character whiC
an the government as a result of its e.
No aminations and supervision, gives
N them. The railways have not be-
given this certificate of character, und
the seal of the national gOvernmer
and therefore many people who inve
freely in the shares of banks are relu
tant to buy railroad securities. Gi
ing them the same guarantee as to railro
securities which we now give them
,xI to national bank shares. and we wou
-, | presently see these people investing
alu railroads, and thus opening new reese
voir from which to draw the capt.
Sid. | now so much needed for the extensi
l., and betterment of the railroads.
ny "All this, my friends, is substantial
ave what | have said over and over aga
the Surely it ought not to be necessary
1874 say that ii in no shape or way rep
- sents any hostility to corporations
shu such. on the contrary, it means
rec. frank recognition of the fact that co
binations of capital. like combinatiC
,ro of labor. are a natural result of mod,
conditions and Of our national devel'
ohs ment"
the