The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-02-05
TUESDAY. FEBRUARY 5. 1897.
The President and the Railroads

The President and the Railroads.
The attitude of the administration to-
ward corporations. especially toward those
engaged in the business of common car
riers. continues 10 excite the profound
apprehension Of many eminent fnanciers.
So deep is the interest Of these gentlemen
in the welfare Of the country, particularly
on its material side that they are bring
ing every pressure TO bear on President
Roosevelt TO secure a modification Of the
spirit Of hostility" which, to use their
own words. they appear TO regard as ami
mating the administration in its efforts
TO bring common carriers within the con
troll Of law. Not only are they seeking
10 create the impression that the indus
trial activities of the country may re-
Ceive severe setback if the President
adheres to his present economic pro-
gramme but they are also nourishing a
determination, according to excellent
authority, Ito wreck at all hazards the
governments plan for uprOoting cor
p0rate Wrongdoing." disappearing or
misapprehending the Presidents position.
the financial interests centered in Wall
street are attempting To generate and
spread belief that unless the existing
anti-railroad agitation is stopped, it will
be impossible To raise funds to carry on
the immense construction work absolutely
essential 10 meet the growing demands Of
railway traffic. Finally, they ask that the
President make an appeal to the country
for fair and reasonable treatment for the
railroads
We think it sound assumption that
President Roosevelt is at least as strongly
interested in the moral and material well
fare OF this nation as any Of the eminent
tna1ciers who are now COnspiring To dis
credit and bring to naught his relatively
moderate and conservative programme
for corporation reform. We know of no
proposition FOR the Federal regulation Of
railroads emanating from the Executive
that is not intended to deal with them
fairly and reasonably. In fact. there is
abundant testimony from competent rail-
way managers themselves that the Fed
eTal legislation SO far accomplished has
been distinctly i'm the interest both Of the
railroads and the public, and there is con-
siderable recognition from the same
source OF the desirability of further Fed
eral legislation Tegulatiye of common car
riers and their relations with each other
and with the shipper 1t is yet too early
to estimate the effect of the rate law upon
railway rates. but as the Interstate Com
meree Commission has always been a
careful and conservative body, there does
not seem TO be any good ground for fear
that it will insist upon rate reductions
that would seriously affect the earning
capacity OF any road The investigations
conducted by that body, in pursuance of
acts of Congress, have undoubtedly con-
tributed 10 the popular feeling on the
subject of railway management. but Il
cannot be contended with gravity in any
quarter that the railways are entitled To
conceal their affairs from the public OF
from the administration, and the ultimate
influence of the revelations concerning
railway methods though temporarily dis
turbing 10 the railway stock market. viii
undoubtedly be healthful and beneficial
But what would be the probable effect
of the course OF action or inactiOn that
the financial interests are endeavoring to
press upon the administration? Can Their,
be any doubt that a stand-pat or reaction
airy policy would be much more dangerou:
than that 10 which the President has set
his hand? Suppose the President should
issue an appeal to the country to let VI
on railroad legislation, admonish tn,
Interstate Commerce Commission Il
diminish its activities and 10 be moderat,
in its rate rulings, instruct the Depart
ment of Justice to restrain the ardor o.
its enforcement Of Federal railway law
and let Congress and the country know
that he would not ask for further rail
way legislation. The influence of such f;
course. even were it secretly pursued
would be precisely the opposite Of wha
its proponents anticipate. Ii would be t
arouse the forces Of radicalism NOR,
strongly than ever. to increase the de
mand for regulative and restrictive leg
islation, and to accentuate materially tn
public sentiment adverse TO corporations
II would be the madness that precede.
destruction.
The safe and sane policy for railwal
corporations to pursue is quite otherwis
than that outlined by some of thei
spokesman. II Is possible that a goo,
deal Of the hesitation Of investors in buy
ing railway stocks and bonds is due quit
as much 20 unwillingness 10 intrust thei
funds to spectators and high fnancier
as il is 10 approximations of radical rail
way legislation. 1t is possible that a NOR
ready conformance TO government regula
ton would have steadying effect on In
values Of railway securities. Il may b
that if railway capitalization were Unite
TO the actual cash investment and railwa
incomes We're devoted to legitimate pur
poses and not 20 speculative schemes an
ambitions, investors would have a grea
deal more confidence in railroad obIiga
tions. It is entirely within the bounds o
s. reason that legislation aimed at thes
ends would, instead Of preventing rail
roads from obtaining the funds they need
really assist them in financing their con