The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1907-05-31
Every Honest Railway Manager

! In the interest of the public, but most
| emphatically in the interest OF
Every Honest Railway Manager
end of all investors or would.be in
vestors In railway securitisS. There
must be vested In the federal govern
ment full power of supervision and
control over the railways doing inter
state business; power In many re
| spects analogous to and as complete
as that the government exercises over
the national banks. It must possess
| the power to exercise supervision over
| the future issuance of stocks and
bonds, either through a national In.
corporation (which should prefer)
or In some similar fashion, such super.
vision to include the frank publicity
: Of everything which would.be inveS-
tors and the public at large have a
, right to Know The federal govern
| ment will thus be able to prevent all
overcapitalization In the future: to
prevent any man hereafter from plum
dering others by loading railway prop
critics with obligations and pocketing
the money instead Of spending 1t in
improvements and In legitimate cor
porate purposes; and any man acting
in such fashion should be
Held to q Criminal Accountability
It should be declared contrary to pub
| lic 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 honest railroad manager we
should seek to discourage the activi-
ties Of the man whose only concern
with railroads Is TO manipulate their
stocks The business Of railroad or
ganization and management should be
kept entirely distinct from investment
or brokerage business, especially of
the speculative type, and the credit
and property Of the corporation should
be devoted to the extension and bet
terment of its railroads and to the
development Of the country naturally
tributary to the lines. These prin-
cipies are fundamental. Railroads
should not be prohibited from acQuir.
ing connecting lines, by acquiring
stocks, bonds, or other securities Of
such lines, but 1t is already well set
TIED as
Contrary 70 Public Policy
TO allow railroads to acquire control
over parallel and competing lines Of
transportation. Subject to first giving
20 the government the power Of super
vision and control which have advo-
Gated above the law should be amend
ed SO that railroads may be permitted
and encouraged to make traffic agree
ments when these are In the interest
OF the general public as we'll as OF the
railroad corporations making them
These agreements should Of course be
made public in the minutest detail
and should be subject to securing the
previous assent OF the interstate CON-
merce commission
The movement to regulate railways
by law has come to stay. The people
Of this country have made up their
minds--and wisely made up their
w TASlSlSS u SlSbSCI SSA1A VI
over al! kinds Of public service cor
porations. including railways. Every
honestly managed railway will gain
and not lose by the policy. The men
more
Anxious to Manipulate Stocks
than to make the management OF
their roads efficient and honest are the
only ones who have cause TO oppose It.
We who believe In steady and
healthy progress stand unalterably
for the new era Of the widest publicity
and Of fair dealing on the part OF rail.
roads with stockholders. passengers
and shippers. We ask the consent OF
no man in carrying out this policy;
but we gladly welcome the aid OF
every man In perfecting the law IN its
details and tn securing Its enactment
and the faithful observance Of its wise
provisions. We seek nothing revolu-
tionary. We ask for such laws as In
their essence now obtain In the staid
old commonwealth Of Massachusetts;
such laws as now obtain In England.
The -purpose of those Of US who so