The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1907-08-20
Fguratvey Speaking, Wins 1t May Him Better TcksSte


bed, track and equipment OF railways
iAto the pockets Of the dishonest ma
nipulatSFs and thus 10 pile such an un.
profitable debt upon q railway as TO
maize bankruptcy and a reoslvsrship
probable in the aTst business strinEsn-
cy. This result In an interstate rail.
way necessarily interferes with and
burdens interstate commerce and jus
tiles the exercise OF the regulntlvs
power OF congress 10 stop the practice.
A railroad company engaged In inter
state commerce should not be permit
ted therefore 20 issue stock or bonds
and put them on shle In the market ex-
eept after a certificate by the inter
state commerce commission that the
securities are issued with the approval
OF the commission for a legitimate rail
road purpose. The railroads that are
honestly conducted would accept the
certificate OF the commission as val
liable one In the markets Of the world
and only railway stock manlpulators
who look 10 the floating VI watered
securities a. their best source OF profit
would have reason 10 complain.
"a much used means Of eliminating
competition among interstate lines
serving the same territory In the &C.
QUESTION by one company OF the stock
In another and the election Of directors
10 represent that stock This process Is
facilitated by the uncontrolled power
20 issue securities beyond the needs OF
the company for Ns legitimate business
aud would be curbed by the restriction
proposed. The evil ought furthsr to be
directly restrained by making Il IN
lawful for an interstate railway 10 ac-
quire stock In a competing live. This
IL simpler remedy Of meeting the
evil than by recourss 10 the antitrust
law under The Northern Securities
case In addition to this competing
lines should be- prohibited from hay
! ing common directors or officers.
These suggestions Of additional log
lslation la respect 10 the supervision
aud control Of Interstate railways have
boen wsdc by the interstate commerce
commission. and / heartily coAcur IN
them. They are plaialy within he fed
sral Jurisdiction under the interstate
com aorcs CLAUSE 40 not think that.
IN order 10 accomplish n good which
the federal government with ~ great.
er resources aud wider geographical
reach. can bring about more quickly
aud efficiently. the constitutional lin
~ upon federal action should be blur
rcd out or an undouhied federal pow
or should b. expanded By doubtful
construction into field which really
belongs 90 the state. Bot the right Of
congress % take any action net cohhs
cat0ry n the most rigid control OF In
ter,tR,s sommorce cannot b. denied.
The measures taken and proposed
are radical perhaps, viewed from the
standpoint 81 the laisses fairs doctri.
naiN whose IDEAS have been allowed
20 prevail In respect u railroad man.
agement down 20 the present But no
one can read tho report Of the conmls.
sion On the history Of the union OF ths
southern Pacific and Union Pacific sys
tens with the Illinois Central system
without trembling AZ the enormous
power that one man. BY the uncon
trolled use OF the stock aud bond lssu.
lug power Of interstate railways under
state charters. has acquired In respect
Of vital part Of the country's busl.
ness and without looking for some
means 81 rcmedying such q dangerous
tendency which. n not stopped. will
lead 10 the absorption Of all the rail
roads Of the country into one hand
The contention on behalf Of the rail
roads. already noticed. that such super
vision a. the rate bin and these -uE
restsd amendments afford Is soclalistic
aud tends 90 government ownership l.
utterly without basis Efficient regula
ton 10 tho very sutidote and prcventn
tive Of socialism aud government own.
crship The railroads until now have
BEEN permitted 10 WELD without any
real control the enormously important
franchise % furnishing transportation
10 tile entire country They have con.
siructsd 80. on miles of road In Ger
tain respects they have done a marvel
Gus work aud have afforded transporta.
ton NJ a cheaper rate per ton. per mile
aud per passenger than In any country
IN the world They have. however.
many " them. shamelessly violated the
trust obligation they have been under
10 the public ~ furnishing equal facili.
ties at the same price 10 all shippers.
The watering OF stock and bonds and
tho DISQUALIFICATION u some " them
for the profit Of their managers have
prevented the needed Improvement Of
thelr railroads In construction and
equipment. The tremendous demand
for increased facilities due 60 tie enor-
nous growth OF business shows the In
adequacy Of their equipment and con
structlon while they might not have
been expected 10 meet In full such an
extraordinary demand, the obligations
some OF them have assumed In the form
Of stocks aud bonds leave no doubt
that had the money they represented
been put into the roads In good faith
the shortage Of ears and equipment aud
lnadequacy II roadbed and track would
not be 30 great. They discharge a pub
lie function. They have been weighed
In the balance and found wanting The
remedy for the evils must be radical 10
be effective II Il IL not 10. then We
may certainly expect that the move
ment toward government ownership
will become formidable one that can
not be stayed"
The secretary here comments upon
the frightful loss Of life and limb