The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1907-05-31
HONOR TO
GEN. LAYTON
Roosevelt Expounds Policy
at Statute. dwelling.
NO WAR ON RAILROADS.
Demands Full Powers Of Super.
vision OF All interstate
Trunk Lines.


Roosevelt. as orator Of the day at the
unwilling OF the monument to General
Henry w. I.awton. made most i'm
portant exposition OF the admlnisira
tons policy toward the railroads. AIT
or eulogizlng General Lawton for his
services In the civil war. In the Span.
ish war and Ia the Philippines. where
he fell In battle. the president declared
we OF today must display the same
courage and obedience 10 duty In fight
Ing the Industrial battles OF the repub.
lie. lie said In part:
IL wish 10 say word 90 you about
the first and most important feature OF
our present day task. the control Of
the common CARRIERS doing an inter.
state business. n control absolutely
vested In the nation. while In - Tar NJ
the common carriers also transport the
mails II II In my opinion probable that,
whether their business Is or Is not In.
terstatc II II Ia the same extent sub
feet 10 federal control under that
clause OF the constitution granting 10
the national government power 10 es-
tablish post roads and therefore by
necessary implication power 10 take all
action necessary In order 10 keep them
nt the highest point Of efficiency.
There must be- vested In the federal
government n full power Of superyl
sion aud control over the railways do
ing Interstate business. power In
many respects analogous 10 and as
complete as that the government exer.
clses over the national banks. II must
possess the power 90 exercise superyi.
sion over the future Issuance OF stocks
and bonds. either through n national
Incorporation. which I should prefer.
or In some similar fashion. such super
visIon 10 include the frank publicity Of
everything which would BE- investors
and the public az large have a right 10
know.
'srhe federal government will thus
BE- able 20 prevent all overcapitallza.
tion In the future. to prevent any man
hereafter from piundering others by
loading railway properties with obii
cations aud pocketing the money In
stead OF spending II In improvements
aud In legitimate corporate purposes.
and any man acting In such fashion
should be held 90 n criminal account
ability.
1T should BE- declared contrary 90
public policy henceforth 10 allow rail-.
roads 10 devote their capital 10 any
thing but the transportation business.
certainly not TO the hazards 81 spccu.
lation. For the very reason that we
desire 90 favor the honest railroad
manager We should sock 10 discourage
the activities Of the man whose only
concern with railroads Is 60 manlpu.
late their stocks.
THE credit and property ~ the cor.
poration should H. devoted Ia the ex.
tension and lettcrnent ~ It's railroads
aud 10 the development of the country
naturally tributary a. the lines. Rail
roads should not be prohibited from
acquiring stocks. bonds or other Sc
curities Of such lines. but II II already
well settled as contrary 10 public poll
cy 90 allow railroads 10 acquire con.
trol over parallel and competing lines
81 transportation. Subject % first Civ.
ing 10 the government the power of
supervision and control. the law should
lie amended 10 that railroads may be
permitted aud encouraged 10 make
trafiic agreements when these are In
the interest of the general public a.
we'll aa Of the railroad corporations
making them. These agreements
should Of course be- made public In
the minutest detail aud should he sub
ject 10 securing the previous assent Of
the Interstate commerce commission.
Ample provision should be- made by
congress 10 enable the Interstate com.
merce commission by the employment
Of a sufficient force of experts 10 UNI
dertake the physical valuation ~ any
road In the country whenever In the
opinion ~ the commission such n val
uatlon would aid the commission In
iis work.
Physical valuation n no panacca.
n II no sufficient measurement of n
rate. but II will he ultimately needed
as nm essential instrument In admin.
irtati,e supervision. II will be OF
use 20 the commission In connection
with the duty 81 determining the rca.
sonablcness Of future capltalizat ton,
both as one element 30 enable such 4
body 90 come 90 n right conclusion IN
the matter and also M an element "a
be- placed before the investing pnblic
60 enable this public In It's turn q
reach n conclusion. though ~ course
capitalization must be determined IN
large measure by future need ratheI
than past investment. How important
physical valuation will prove as one
OF the factors 90 assist In fixing equlta
bile rates I am not able 20 Judge. hui
that II will be OF certain lmportanc,
can he safely ASSUMED because OF the
opinions OF the interstate commerce
commission and Of the courts and be
cause OF the recent action Of the North
ern Pacific railroad In advancing sucl
q physical valuation as decisive on III
side In rate controversy.
I'VE seek nothing revolutionary. w
ask for such laws ~ In their essence
now obtain In the staId old common