The Washington herald., 1907-03-21

Equal use and privileges by all citizens
OF public utilities, was the keynote Of an
address deliverd by Dr. Charls W. Need
ham, president Of the George Washington
University, at the monthly meeting of the
Sons of the American Revolution, at
Rauseher's, last night
DR.. Needham also arraigned in strong
terms the failure Of the government to
properly control the organization and cap
italization Of great corporations, and in
this connection said;
There is no greater service the states
man Of to-day can render the public than
to enact Federal statute for the organi-
zation OF corporations doing interstate
business and business in the District Of
Columbia and the Territories that shall be
the equal Of the national banking act in
the care with which the organization Of
such corporations is supervised: its eapi-
tai paid in, and the conduct of business
reported"
Railroads and the manner in which
freight rates are manipulated TO the detri-
ment OF the producer and small shipper
came in for scathing comments at the
hands Of the speaker.
There are two great questions before
the people of this country which require
the careful and dispassionate eonsidera-
tion Of scholars and practical men Of af-
fairs" he said. "Time was when the
railroads were looked upon almost wholly
as private property. Contracts were made
with them by shippers upon this theory.
It resulted in the growth of the greatest
evil that exists to-day-in the granting
of special privileges and rates to large
shippers by transportation companies,
which stife fair competition.
If a corporation. by securing large cap
ital and the services Of men of genius.
can reduce the cost Of producing any arti-
cle, and by shipping it in the most eco
nomicai way TO markets at the lowest
possible price. society is served. But if
corporation IS able to transport its pro-
ducts over a railroad at less rates than
are allowed its competitors and can Sc
cure facilities which are denied 10 its
competitors, then the law is violated and
society suffers 10 the extent that Il is de-
prived of the benefit of the competing
forces. The remedy for this evil is plain.
The railroad is public highway, and
as such should be superintended by the
state; not in d manner TO prevent a fair
return upon the value Of the property, but
to prevent discrimination between the
shippers and between points Of shipment.
The public service upon railroads, like
justice in the courts, should be assured to
ali citizens on equal terms.
Law Governs interpretations.
Speaking of banking corporations and
the failure Of the government to properly
control the capitalization of corporations,
Dr. Needham said:
No group of men have any right to
be organized into an incorporated COM
pany except as the law gives that right
If We have had bad corporations, the
law is responsible FOR their existence and
the correction Of the evil is in the en-
actment of better incorporation laws.
The necessary result OF present con
dldons is 10 vest the ownership of our
whole Industrial property in corporations
The small individual holding, so universal
IN our country under the old system has
passed away The individual no longer
owns the tangible property Sused in in
dustrial and commercial enterprises; it
belongs TO the artificial. intangible being
whose stockholders liability for its debts
and conduct has been fixed and mini
mized. Under the old system the indi-
vidual felt a personal interest in the pro-
lection Of industrial property He was
interested in the peace of the community;
the impairment or destruction of this
property meant direct personal loss to
him."
Disseets Speculation.
Ownership Of stocks and wild specula-
ton therein was dissected. In this con
Rection Dr. Needham said the only way
the individual can become interested in
corporation property is through the own
ership Of a share Of stock.
These shares OF stock" continued the
speaker, become the muniments OF title
which are held by the people In this way
and by this means the title to the prop
erty is being distributed among many
holders To-day these shares are the sub
Ject of wild speculation because their in
triasic value is uncertain. The people at
large discredit them because they do not
know what they actually represent But
the struggle will 90 on in this country 10
have the real. true value of these shares
determined and fixed by q proper super-
vision Of the state The national bank
act provides wisely for the organization.
capitalization, and publicity of the re-
suits of the business of these corporations.
and their stock is not the subject of wild
speculation"
Advocates. New Law.
DR.. Needham advocated the passage of
a Federal statute tending TO supervise
corporations doing interstate business. He
promised that when we shall have Sc
cured such acts of Incorporation and con-
troll of these vast agencies. the people at
large viii again become holders OF their
shares of stock, and through them own
ers OF the industrial property of the
United states.
a business meeting preceded the ad-
dress, W, T. March presiding. Maj Alfred
l. Stofer entertained the assembly with
Southern melodies. and at the conclusion
OF the programme a bufTet supper was
served
The following members were present:
W. L. March. president; P f. Larner. treasurer;
w. Fl. Bayley Commander J. H. Moore. William
9. Gailagsr, NJ l. Dawkins. James Shelden j..
6. W. Linnen William A. Miller, Dr. L. L. French /
II. ", Wells, II. r Hodens W 3. Thompson
Admiral q. ". Baird ". \. Paxton. r. J. !
J. II. Small & sens, Florists,
Washington and New York.