The semi-weekly messenger., 1907-04-12

Washington, April Sore Il ihr
Interesting Development. I'll rh- liar.
liman hearing before .he .u.,.s.u.4
| commerce commission, J2sJ c.cs-a
here was the discussion .c.u,yu
counsel for the government as to the
udVisaDiIjly OF congress passing a laN
providing federal supervision over the
ISSUANCE Of railroad securities The
matter was debated by two Gisun-
guIshed lawyers, Judge il. ). LOvett,
representing Hartman, and frank -.
kellogg, of st. Paul, special counsel
for the commission in the DrCce~u-
ings directed against the Harnm3I
consolidation. Mr.. Kellogg had this
to say on the subject:
Il do not believe that an unreasOn-
able restriction should be placed on
the issuance Of railway stocks and
bonds. | do think, however, that
it is III the interests of the railways
and of the public that railroads should
be prohibited from becoming great
financial investment institutions deal
ing in stocks and bonds. Their credit
which stood high, should be used in
the expansion of their lines and in The
transportation of traffic. They should
be allowed reasonable, generous
profits. | should deplOre the enact
ment of any legislation that would
hamper railroads in their operations. /!
1t is my opinion, however, that the f!
tinln hac urhan Chn-r!i (
reasonably limit the initiation OF rail |
road securities. such as was done IL |
Mr.. Harriman's recapitaliZation OF |
the Chicago and Alton Railroad COM ,
psny."
Judge LOvett said that in the pres |
be popular for congress to pass law |
regulating the issuance of railroad |
securities. He doubted the advisable |
ity of such a step, and questioned its |
cOnstitutiOnality. Il do not believe |
that congress has any such power" |
he said. 1T would involve & change
in the structure Of the government
It would be an interference with the
fundamental right to purchase prop
erty.''
Paul D. Cravath, one Of the best
known corporation lawyers in the
United States, counsel for Hartman
and serving in a like capacity TO.
Kuhn, Loeb and Co., did not discuss
the subject, but expressed himself
somewhat as did Mr. Kellogg.
That the interstate commerce COM
mission has under consideration the
advisibility Of discussing in its next
annual report the matter of the cap
italizatiOn or OvercapitaiZatiOn is we'll
known in Washington. Members Of
the body showed very plainly during
the progress of the Hartman hearing
that this thought was running in their
minds. 1t is known that during the
closing days of the Fifty-ninth CON
gress Mr Roosevelt had a number cf
conferences with senators and repre-
SentatiVeS on the subject of inflated
or watered railroad stock, and that
he will touch upon it in his first mess
age to the next congress is generally
believed
Representative Rainey, Of Illinois,
brings a narrowing tale from the 18TH
mus of Panama, where he went to in
spect the canal operations. Rainey
says things are in bad way a. Pana-
ma. The employees are fed bum
feed as he expresses it. and they are
required TO pay eXOrbitant prices for
meals that in Washington are sold for
two bits. Rainey states that the meat
is SO bad that it has to be dcctored
They dope the stuff with onions and
garlic to make it palatable" he said.
when | asked them why tLey put
garlic in the meat they explained that
it was done to tickle the palates Of the
Italian and Spanish Iaborers On the
Isthmus." Rainey believes that The
scandal that threatens TO grow out Of
the 11Sp Of garlic in the canal zone will