The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-31
THE PRESIDENT AND THE RAIL-
ROADS.

President Roosevelts speech yester-
day at indianapolis should have the
effect to clear up all doubts and un-
oortainties as to the administrations
attitude towards the railroads 1t
should also have the effect 10 restore
confidence in railroad securities, so
far as that confidence was impaired
by previous utterances and acts of
the administration.
The President speaks freely and
frankly He retracts nothing. He says
that there can be no halt in the
course we have deliberately elected to
pursue, the policy OF asserting tho
right CT the nation, so far as 1t has
the power. to supervise and control
in its corporate form"
He says that the people are deter
mined to control the public service cor
porations, and that there must be
vested in the Federal government a
full power of supervision and control
over the railways doing interstate
business; a power in many respects
analogous to and as complete as that
the government exercises over the ma
tional banks"
He says that the Federal govern
ment must possess the power to exer-
else supervision over the future issu-
nnce of stocks and bonds by railroad
corporations. and he believes that the
Federal government now has the pow
er, under the postroads clause of the
Constitution, to regulate State roads,
as we'll as interstate roads He de-
ciares, also. that stock juggling by
railroad pSesidents must cease, and
that the.,roads lfust be operated for
the benefit OF the public and not ma
nipulated for the benefit of stock
jobbers.
But the President makes it as clear
as language can express that he has
no desire or purpose to injure the
railroads, TO retard railroad Develop
nlent to impair the value of railroad
securities. or to discourage invest
ment in them.
To the contrary, he emphasizes the
Importance and necessity of railroads
in the general development of the
country: he points out that the rail-
road industry must be financed" by
private capital, and that in order ,c
raise money for railroad construction
and development investors must HAYS
reasonable assurance of a fair return
on their investment
There must be no such rigid laws.
says he, las will prevent the develop
ment of the country, and such develop
Ment can only be had if investors ar,
offered an ample reward for the risl
they take. We would be the first t,
oppose any unreasonable restriction
being placed upon the issuance o
stocks and bonds, for such woul
simply hamper the growth OF tn
United states; for railroad must vi
timately stand on its credit"
Nor would he have the rights o
innocent investors jeoparded by legis
= lstion or executive action. He woul
rot punish the stockholders for III
sins of the managers. He even goes S
far as to say that this nation woul
nc more injure securities which hav
become an important part of the ma
tional wealth than it would consider
proposition to repudiate the publi
debt Moreover. he does not think tina
the intrinsic value of railroad securI
ties has been impaired By over
capitalization. He says that the censu
reports ON the commercial value q
the railroads of the country togethe
with the reports made to the Interstat
Commerce Commission by the railroad
on their cost of construction, tend /
show that as wh9le the railroa
property of the country is worth a
much as the securities representa-
IT, and that In the consensus of OPT,
Ton OF investors the total value
stocks and bonds is greater than the
total face value, notwithstanding u
"water" that has been Injected in pa
NIcular places
II all this is not reassuring to II
holders es railroad securities, nothir