Omaha daily bee., 1907-04-30

Lamenting the fact that people Of
the country have become suspicious Of
railway security investments. George
Gould says: Il. as a railroad presi-
dent, can not go down into Wall street
and borrow a dollar for needed extern
sions and betterments." Then, pro-
eeeding to show the prosperous ply
steal conditions Of the great railroads
of the country. Mr.. Gould says that 1t
is necessary to regain this lost conf
dence in railway securities. and to do
so he would be willing to have a judi
cious supervision Of the issue Of rail-
way securities adopted by the federal
government.
The complaint made by Mr.. Gould
about the attitude of investors toward
railway securities might be a reiec-
ton upon the states which have been
INDUCING in what the railroad man
ayers define as hostile legislation"
were 1t not all explained in an address
made at Pittsburg by Melville E. In
gals, president of the Big Four system.
Explaining the plan of the railway
managers who, in 1899, formed the
community of interest" plan to secure
Joint ownership of the great railway
systems Of the country, Mr.. Ingalls,
said
If this had been conducted with modera-
ton and the profits from It used to de-
velop the railway lines, it might have stood
somewhat longer, but after It had been
going a short time the chief men got into
a struggle among themselves for the con-
troll OF certain lines and the skeletons in
their closets were laid bare so that the
public understood what was being done.
Instead of improving their lines, some Of
them spent a large part Of their income
and credit in buying other lines and in
creasing their dividends so that the prices
Of their stocks could be sold better here
and abroad, and all these things caused
so much dissatisfaction among people that
It finally took form in the celebrated
Northern Securities case. II 1t had not
been for that suit, few men would have
controlled the great transportation inter-
D
have maintained rates, they would have
made and unmade statesmen; would have
controlled congress and legislatures, and
in the end no one knows what the result
would have been.
The decision of the courts was against
this combination, but instead of accepting
the situation,' as ought to have been DONE
and asking for legislation to enable them
q, NT,.t,- NH,a
legally, they continued to temporize with
various deals and subterfuges to avoid the
effect of It.
The confession of Mr. ingalls, fur
nishes perfect explanation of why Mr..
Gould can not borrow a dollar in Wall
street for needed betterments on his
railway system. The collapse of railway
credits has not been due to hostility
of the people or of legislatures to rail-
ways, but to the disclosures of methods
by which dishonest fortunes have been
made by the railway manipulators at
the expense Of the stockholders and
the railway patrons. Mr.. Ingalls, APP
preciates this condition and offered
remedy for II when he closed his ad-
dress with the admonition:
Gentlemen, you have got to submit and
you might as we'll make up your minds
now that you are no longer a private In
dustry. and he who lie not prepared to
manage his railway as a public institution
in accordance with law should resign and
seek other business
When railroad managers accept and
act upon Mr. Ingalls, advice, as many
of them are already showing a disposi-
ton to do, no more will be heard of the
hostility of the people and Mr.. Gould
will have no difficulty in borrowing any
amount of money for the betterment