The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-05-30

be exefted TO stop crimes OF cunning
no less than crimes of violence. There
can be no halt in the course we have
deliberately elected to pursue, the pol
icy of asserting the right of the ma
ton. so far as it has the power, 10
supervise and control the business use
of wealth, especially in its corporate
form Today | wish to say a word TO
you about the first and most import
ant feature of this task. the control of
the common carriers doing an inter-
state business: a control absolutely
the common carriers also transport the
mails it is in my opinion probable
that whether their business is or is not
interstate. it is to the same extent
subject to federal control. under that
clause of the constitution granting 20
the national government power to es-
tablish post roads and therefore by
necessary implication power to take all
action necessary in order TO keep them
at the highest point of efficiency.
A Step in Advance.
Every federal law dealing with cor
porations or with railroads that has
been put upon the statute books during
the last six years has been a step in
advance in the right direction. All
action taken by the administration I'M
der these and the pre-existing laws has
been just and proper. Every suit I'M
dertaken during that period has been 4
suit not merely warranted, but re-
quired, by the facts; a suit in the in
terest of the people as whole, and in
the long run, particularly in the inter
est of stockholders as well as in the
interest of business men of property
generally. There can be no swerving
from the course that has thus been
mapped out in the legislation actually
enacted and IN the messages in which |
have asked for further legislation. We
best serve the interests of the honest
railway men when we announce that
we will follow out precisely this course.
1t is the course of real, of ultimate
There will be no halt
in the forward movement toward full
of this policy: and those
who wish us to take a step backward
or to stand still, if their wishes We're
realized, would find that they had in
vited an outbreak of the very radical
ism they fear. There must be pro-
gressive legislative and administrative
action for the correction of the evils
which every sincere man must admit
to have existed in railroad manage
ment in the past.
In the Interest of All.
Such additional legislation as that
for which l have asked in the past, and
that for which | asked in my
at the opening OF the last
session of congress, is not merely in
the interest of the public, but most en-
phatically in the interest of every hon
est railway manager and of all invest
ors or would-be investors in railway
securities. There must be vested in
the federal government a full power of
supervision and control over the rail |
ways doing interstate business; pow |
or in many respects analogous to and
rs complete as that the government !
exercises over the national banks. 1t
must possess the power to exercise SUI /
Dervision over the future issuance of I
stocks and bonds, either through ma
.ionaI Incorporation (which | should /
Drefer) or in some similar fashion, !
such supervision to include the frank |
of everything which would
De investors and the public at large
nave a right to know. The federal |
government will thus be able to pre-
rent all over-capitalization in the fu-
ure; to prevent any man hereafter
rom plundering others by loading rail
way properties with obligations and
the money instead of spend
ng it in improvements and in legiti-
nate corporate uses: and any man act
ng in such fashion should be held to
criminal accountability. 1t should be
declared contrary to public policy
lenceforth to allow railroads to devote
heir capital to anythin gbut the trans
,ortation business, certainly not to the
of speculation. For the very
eason that we desire to favor the hon
st railroad manager, we should seek
o discourage the activities of the man
whose only concern with railroads is
o manipulate their stocks. The bust
less of railroad organization and man
cement should be kept entirely dis
met from investment or brokerage
BUSINESS. especially of the speculative
ype, and the credit and property OF
he corporation should be devoted TO
he extension and betterment of its
aiiroads and to the development of
he country naturally tributary to the
ines. These principles are fundamen-
al Railroads should not be prohib-
ted from acquiring connecting lines,
v acquiring stocks, bonds, or other Sc
urities of such lines: but it is already !
-ell settled as contrary to public policy Il
D allow railroads TO acquire control
yer parallel and competing lines of
Subject to first Civ ,
lg to the government the power of !
upervision and control which | have ,
dvoeated above. the law should be
mended so that railroads may be per
lifted and encouraged to make traffic
greements when there are in the in
crest of the general public as we'll as
{ the railroad corporations making
hem. These agreements should of ;
curse. be made public IN the minutest !,
etail. and should be subject to secur-