The Washington times., 1907-08-20
StandsUpOnPlatfOrm
of ROOSeVelt'S POIi=
CieS and Achieve
mentS.

Ohio, at Columbus, last night, said
that the present is a period of the
greatest prosperity; that the de-
mand for labor had increased wages
10 a higher point than ever known
before, and that the compensation
of skilled labor now frequently ex-
ceeds that of certain professions.
The Secretary spoke Of railway
abuses and determinations, the
failure of the old interstate com
MERGE laws, the new rate bill and
President Roosevelt's part in secur-
ing it, the national banking act, and
the arguments of the railroads
against the bill.
Outraged Public Opinion"
He described the outraged public
opinion which made the bill pass,
and declared that one of the objec-
tions to it was the incOmpetency of
the commission to fix rates. The
Secretary said that the final objec-
ton to the bill was put forth by
the railroads. and that their con
stitutional objection" to it was
without weight.
After detailing the small vote
against the bill, and saying that the
opponents Of it now belittle it and
praise the Elzins bill, Mr.. Taft said:
Denouncement Continues.
THE opponents Of the measure con-
tirue to denounce II, but now instead
Of pointing ou- its disastrous effect.
they say it is a failure and that IN the
year since its passage. it has not helped
a single shipper. They insist that the
only effective and an alI-suhicient law
to regulate railways IS the Elkins act
passed in 1908. and that this Is shown
bv the fact that all the prosecutions
in which convictions have been had
against railway companies and favored
shippers in the last two years. have
been under the Elkins act, and not
under the rate bill. Let US look into
the facts in regard to this allegation.
The chief prosecutions which nave been
instituted have been criminal indict-
ments against the Sugar trust and the
STANDARD Oil Company, and certain rail-
WAYS and their agents and officers for
taking and giving secret money REBATES
They could not have been brought unoer
the rate bill, because the acts prose
cuted were committed before the pas
sage of the rate bill.
In regard TO the effect OF the Elkins
bill on criminal prosecutions. Mr.. Tart
said.
THE chief effect the EIkins law had
on these particular prosecute ms when
have been given so much prominence,
was 20 make II easier TO convict the cor
poration and to increase its fine, but 70
fa Ind Wiz
from imprisonment
Railroads Favored Elkins Bill.
eft is well understood that the EIkIns
bill was passed without opposition by,
and with the full consent OF. the rail-
roads. and that the chief reason for this
was the elimination OF the penitentiary
penalty for unjust determinations. The
abolition OF Imprisonment as a possible
penalty. was unfortunate. Experience
has shown that a mere fine is generally
not enough TO deter a corporation from
violation Of the law. because u then be-
comes a matter of mere business specu-
lation. The imprisonment of two or
three prominent officers Of a railway
company, or a trust, engaged in giving
or receiving secret rebates. would have
q greater deterrent effect for the future
than millions In a fine.
Restored Jail Penalty.
"In the rate bill, Congress
amended the EIkins bill and re.
stored Imprisonment as part of the
punishment for secret rebates. Had
the rebating and dishonest practice
of the railroad companies and the
trusts, been as clearly known to
Congress and the public, when the
EIkins bill was considered, as they
were when the rate bill was passed.
the EIkins bill would not have
passed so smoothly.
Elkins' Bill Narrow Scope.
The Secretary spoke OF the merits Of
the EIkius bill as he saw them, the ef-
feet OF the rate bill as it could not be
shown in statistics. the attitude Of the
country toward the Administration meas
ure and what he said was Mr.. Bryan S
error as 10 court review OF the bill.
He declared;
THE rate law does not go far enough.
The practice under it has already dis
closed the necessity for new amend
ments and will doubtless suggest more.
Such is the true methOd-the empirical
and tentative methOd-Of securing prop
er remedies for new evil The clas-
sihcation of merchandise for transpor-
tation Is a most important matter IN
rate fixing. for by a transfer from one
class to another. the rate is changed
and may work injustice With the pow
er Of rate fixing. 10 would seem, should
go the power in the commission 10 clas-
sify and TO prescribe rules for uniform
classification by all railroads.
Prevent Over-CapitaIization.
Recent revelations have emphasized
the pernicsous effect of the so-called
over-capitalization OF railroads which
aids unscrupulOus stock manipulatoTs in
disT.Osing Of railway securities at un-
reasonably high prices to innocent buy
ers. This evil would not of itself Justify
Federal restraint or control. because
such stock and bonds are usually issued
under State charters.
Tendency to Divert Money.
The practice, however, has a tendency
10 divert the money paid by the public
for the stock and bonds which ought TO
be expended in improving the roadbed.
track and equipment OF railways inJO
Inc pockets of the dishonest manipu-
latOrs. and thus 10 pile such an IN
STANH OPE