New-York tribune., 1907-10-13
MATHER ON RAILROADS.
Vie5os of Rock Island Nan on Causes
of Stock Depression.

Chicago. Oct. 12.-Public belief in the reports
Of alleged peTnicious practices by railroad Of
ficers and directors and uncertainty to the
extent of regulation are the primary causes of
making railroad securities unstable and partly
paralyzing commercial development, according
to Robert Mather general counsel OF the Rock
Island system. who spoke at the banquet of
the Chicago Association Of Commerce tonight.
Mr.. Mather declared at the outset that the
railroad problem had become the national prob
lem. not because the railroad business had be-
come for the moment the subject of public criti-
cisn and the object of popular assault. but be-
cause the life of the anton depended on its rail-
roads and it's future hung on the correct soIu-
tton Of the problems they presented.
He declared that the railroads had not been
able to reconstruct their facilities with sufficient
speed to meet the exigencies of the greatly in
creased traffic of the country, and when they
attempted to do so they found in their great
est stress. that their securities could no longer
be sold, and the money essential for the desired
improvements was not available. He continued:
Then. instead of moving with greater speed to
provide the facilities for the lack Of which less
than one year age grain lay rotting in the
fields, and communities suffered from a lack or
coal they slackened. perforce, their already too
slow pace. and to-day. condemned by public
opinion, by reports OF commissions and by Ihelr
own cOnscienCes inadequate to their task,
causing daily loss to commerce by the insuth-
cheney of their facilities and equipment the
railroads are impotent to relieve the situation
l count first among the causes that nave
made the securities of the railroads unSalable
the misdeeds of the railroads themselves. !
do not include in this term, for the purposes OF
this discussion, the payment of rebates. would
not deny under present conditions the per-
niciOusness of this practice nor decry the enorts
Of the government to terminate it. And know
of no surer way to accomplish that end than for
a righteous and determined executive to keep
both carrier and shipper in terror OF the con-
hscatory fines which the drastic law imposes
for its violation.
There is a prevailing public belief. based upon
facts publicly shown, that railroads have ISSUED
corporate obligations and applied the proceeds
to purposes other than those for which such oo-
legations may lawfully be issued. Directors are
understood to have purchased the securities OF
corporations of which they are trustees and 10
have sold property of their own to the corpora
tion making personal profit through their deaf
ings with the trust estates. The remedy for
this situation should not await governmental
action.
want of confidence in railroad securities the un-
certainty as to the kind and extent of govern
mental supervision and regulation TO when the
railroads are yet to be subjected. The regula-
ton that threatens peril to the railroads ana
the commerce of the country to-day is the regu-
ation of the states. Such regulation can De
neither logical consistent nor conprehehSlNe
There must be some way to bring home to the
intelligence of the American people the realiza-
tion of the truth that no man who has property
by unjust or unwise treatment OF our great
instruments of transportation. And 1 cannot
help but feel that it would tend greatly 70 WIS
dom and Justice if the people realized that the
railroads would willingly submit 10 q plan OF
regulation that wise and just
We must assume that the President IN preach
ing regulation of railroads. has in mind practlcdl
regulation designed 70 confer beneht IN tne
broadest sense 1t is not 20 be assumed that ti'ls
is 10 be q crusade Tor mere abstract -rlShteous-
ness in which business must be forced 10 the
wall If perfection of spirit cannot be attained
While the President may talk IN general terms
of more or less terrifying sound 10 the tunuItu-
o1I1,s and appaudiug crowds he meets on ms
iourneys we have a right TO expect that pretl-
sion and wisdom and conservatism VIII tOFIhu-
late his final recommendations TO Congress. ana
II that expectation is realized the railroads
should cooperate with Congress and the EXecu-
tive in am effort TO terminate harmful agitation
bv procuring speedily a plan OF federal reguIa-
tion that shall be safe. effective and final
Il on the other hand, We are cheated OF TINS
hone 7 believe the country should, and Will, turn
10 a leadership that promises treatment OF these
vital problems along sound ana conservative