Daily press. [volume] (Newport News, Va.) 1896-current, 1907-05-31

cheney.
Going In the Right Direction.
Every Federal law dealing with
corporations or with railroads that
mas been put upon the statute books
Turing tue last six years has been a
step IN advance in the right direction.
All action taken by the Administers.
,lon under these and the pre.existing
laHs mas Teen just and proper Every
suit undertaken during that period
mus been suit not merely warranted,
pul required, by the facts; a suit in
Tue interest OF the people as a whole.
ana IN the long run. particularly In;
tue interest of stockholders as we'll
as In the interest of business men of
property generally. There can be
no swerying from the course that has
thus mapped out in the legislation
actually enacted and in the messages
IN which have asked. for further iee
lslation. We best serve the interests
or the honest railway men when we
announce that we will follow out pre.
cisaly this course. 1t Is the course of
real, ofSultimate conservatism. There
will be no halt in the forward move.
ment toward a full development OF
this policy; and those who wishus
to. take a step backward or to stand
still, ii their wishes were realized.
would find that they had invited an
outbreak of the very radicalism they
fear.
There must be progressive legfs-
latiye and administrative action for
theicorrection of the evils which every
sincere man must admit to have ex.
listed In railroad management in tho
past. .if,ae
Honest Railway Manager Should Not
=a-,ss Object.
Such additional legislation as that
for which have asked In the past, 1
and especially for which asked in
my message at the opening of the last
session OF Congress-. is not merely In
the interest of the public, but most
emphatically in the interest of every
honest railway manager and of all
investors or would-be investors In
railway securities. 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
national banks. 1t must possess the.
power to exercise supervision over!
the future issuance of stocks and
bonds. either through national In
corporation (Which / should prefer)
or in some similar fashion, such super
vision to include the frank publicity
of everything. which would.be invest.
ors and the public at large have a
right to know. The Federal Govern
ment will thus be able to prevent all
over7capitalization in the future: to
prevent any, man hereafter from
plpnderiig others by loading railway
properties with obligati and pocket-
Ing the money instead OF spending it
In improvements and In legitimate
corporate purposes and an yman act.
Ing in such fashion should be held
to Ia criminal accountability. 1t
should be declared contrary to public
policy henceforth to allow railroads to
devote their capital to anything but
the transportation business certainly
not to the hazards of speculation,
For the very reason that we desire to
favor the hoenst railroad manager,
we should seek to discourage the ac.
tiyities of the man whose only con.
Germ with railroads is to manipulate
their stocks. The business of rail-
road organization and management
should be kept entirely distinct from
Investment or brokerage business,
especially of the speculative type, and
the credit of the property of the cor
poration should be devoted to the ex-
tension and betterment of It's rail.
roads. and to the development OF the
country naturally tributary to the
lines. These principles are funda.
mental. Railroads should not be pro.