Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-15

seems to be so prominent in the thought
or men engaged in what is known as the
business of finance as the relation which
ought to exist between the government
and what may be termed public utility COR
pOrations.
Views Of a Busy Man.
A representative of The Star discovered
In the course Of conversation with Mr.
frederick c. Stevens the other day that
he, unlike some other men accustomed to
large transactions in the world of finance,
had positive views on this subject. Mr..
Stevens is at present an unusually busy
man. as at the request Of Gov. Hughes of
perintendent Of public works of New York
state He has spent the greater part of
the winter In Albany. and came down here
day or two to recuperate from an attack
of grip
Like all men accustomed to a busy life
Mr.. Stevens idea of relaxation is a change
of work. and he was found at his desk in
the office of the president of the CONNER
c1al National Bank attending to business.
His attention was called to the latest pub
LEGATION of Mr.. Bryan, and Mr.. Stevens
very promptly responded, showing that it
was a matter regarding which he had
given much thought and had decided ideas,
and that in his opinion government owner
ship presents no appropriate solution of the
problem which the American people are
now trying to work out.
The Main Point Lost.
"In all this talk about the regulation of
public corporations" observed Mr.. Stevens,
''.t seems to me the main point has been
lost sight of. OF course, 1t is impossible to
make any law retroactive, and what has
been done in the way of stock watering
cannot be undone. A continuation Of such
practices can, however, be prevented.
What is now required is regulation reg
ulation as regards capitalization, thereby
preventing DISQUALIFICATION and what is
commonly called water; regulation which
would provide adequate service to the pub
lie at cost which will insure a fair and
reasonable return on the money invested:
regulation which would prevent unwise
consultations and combinations. Mr..
Roosevelt, might add. has more than once
advocated a change In the Sherman act
limiting its condemnation to combinations
in unreasonable restraint Of trade and COM
merce. =
Also Supervision.
And further, what is required is a regu-
lation which will provide for supervision,
regulation which will bring about a COM
munity Of interests between corporations
and the power granting franchises. be they
nation, state or municipality. In other
words. regulation which would provide
that after the actual capital invested shall
have been paid fair and even generous
return, the remaining surplus and earnings
SIldll De uiNlueu, III SOlHe eQultdDle manner,
between the Thanksgiving power and the
stockholders of the corporation.
AT any rate. such plan is feasible for
corporations enjoying municipal franchises.
portation corporations in the District Of
Columbia were owned by one and the same
corporation under the conditions that, so
long as it kept its obligations to the city
1t would be the only corporation within
the limits of the District of Columbia en-
gagged in the transportation Of passengers,
being obliged to furnish adequate trans
portation facilities and compelled to pro-
vide from time to time all necessary ex-
tensions of tracks for the street railways
adequate for the growth and development
Of the city.
A New City Department.
"a new department of the District might
be created. to be called the transportation
department. which would possess and ex-
ercise appropriate powers. The Commits
sioners of the District might be members
of the board Of directors Of such COM
pany. The earnings Of all these properties
might be ascertained for the fiscal year last
preceding the enactment of the new law.
In each year thereafter an amount to be
declared upon the consolidated stock should
be equal only to the amount OF the previous
earnings thus ascertained, all further net
earnings of the company from all sources to
be divided between the city and the trans
portation company upon basis to be
agreed upon.
Substantially all the advantages. with
none Of the disadvantages of public own
ership would thereby be secured Provision
should be made that in any new extern
sions no stock or bonds should be issued
except under a plan limiting the rate Of
interest or dividends, and generally under
terms to be approved by the commission.
All this and other appropriate provisions
could doubtless be easily included in an act
Of Congress.
Fair to Both Parties.
Certainly no objection could be made by
the citizen to such requirements. as thereby
his interests would be provided for. The
corporation would raise no objection be-
cause though it would surrender some OF
its possible future earnings. 1t would be
secure in the enjoyment of its limited in
lie and the corporation would be in ac-
cord.
1.-THE amount received by the District of
Columbia in this instance should not be
added to the regular tax budget or used to
defray the ordinary expenses OF govern
ment. but the revenue derived from this
source should be set aside as special
tons that are coming to be recognized as
quasi-municipal functions, such as the ex-
tension of libraries and the providing Of
clubs for young men and women, play
grounds for children and possibly kinder
gartens for the still younger children OF
the poor.
II feel sure that plan of which this Is
perhaps a crude outline could be so worked
out as to ensure entire satisfaction to the
terests.'