The Cairo bulletin., 1907-09-19
10 P[k|TENT|ARY
|. W|IHB|CFELLOWS.
HENRY cLEWs TELLS KENTUCKY
BANKERS WHAT 70 90 WITH
CRIMINAL CORPORATIONS
ROOSEVELT Is FIRM
Country Has Gone Ahead Too Fart
In Costly Construction Work
South Prosperous and Cot
ton 10 King.

| " 3 VI
\ Il Louisville, KY. Sept lS.---A plea for
the punishment by imprisonment Of
dishonest corporation officials and a
protest against the tendency In Ger
tain quarters to attribute the receat
decline in the stock market to Prcsi-
ident Roosevelt's policies were made
by Henry Clews OF New York In an
address before the Kentucky Bankers
Association here today. Mr. CIews
took for his subject THE Situation"
and, discussed existing conditions Ia
the financial world at considerable
length. He expressed the opinion
!, that the Administrations expressed
intention to originally prosecute the
men guilty of illegal practices In the
management or stock companies will
prove benefit instead of q detri
| ment to the country's business affairs.
! Mr.. Clews In the opening portion of
| his remarks reviewed the events tn
the stock market during the past six
months. A crisis had been impending
for long time, he said, but the trou.
BILE did not hernme acute until tha
fine OF s29.240.000 was imposed On the
Standard oil Company of Indiana
Then the speculative milIionaires WIN
had been trying to engineer an up
ward movement In stocks found
themselves overloaded and they be.
gan to sell out at whatever prices
they could obtain. Thus with support
withdrawn, there was sharp decline
Ia prices OF securities, the chief suf.
ferers being the best and highest
priced stocks
The apprehension excited among
investors and spectators by r1at $2e.-
100000. fine.' said Mr. CIews, a.iiI
an immense amountof harm through
the enormous losses to which II led.
tn combination with the prosecution
Of the Southern Railway BY soothern
States, involving the conflict between
North Carolina and Alabama and the
United States Court. that cxtravagant
fine, so suggestiye.aof opera bouffe,
was the Immediate catlse of the heavy
liqpidation that produced the August
crisis and turned the New York stock
market into storm center. Although
there was no probability or even pos
sibility OF this fine ever being colecs
cd from million dollar corporation,
even II affirmed on appeal public sen
timent was about as much disturbed
as II It were ultimately coIieetibip. By
creating. although without SUFFICIENT
reason, fear CT conhseafion II led 20
those enormous sales aud sacriics
Of stocks by investors, as well as hy
spectators and the virtual panic that
lasted these two long aud memorable
weeks.
The innocent thus suffered with
The. guilty, and the evil effect Of such
4 fine was clearly demonstrated by
very severe and disastrous object les
son. The true remedy for rcbating
md other wilfuli violations cf law is
not to be found in the infection Of
heavy penalties on the guilty corpor
atoms but on the responsible AMI
yuilty officers Of those corporations.
md not alone by fine but by imprison
nent Heavy fines inflicted on corpor
Itions fall finally on their stockhold.
'rs. through a corresponding loss OF
dividend paying power: and the low
ring OF market prices for their
tocks. The proper remedy Is punish
ncnt behind iron bars.
AS the stockholders are In no way
esponsible for deIinquencles IN man
Il Is unjust TO make them
uffer the consequences 81 these. n
hculd. therefore. be the future policy
4 both the Federal government and
he states 10 punish corporations for
legal practices by criminal proceed
ngs against those tn their employ
rho are found 10 BE- responsible for
hem. Thus punishments viii be con
med to the guilty. and confidence win
q restored among investors. for such
would in 10 wsy tend -
epreciate the value Of the stocks AMI
onds Of the corporations concerned.
ut on the contrary they void tend II
nhance their value by promoting
onest management
Stimulated hy the country's enor-
ious prosperity during the last few
ears. We have gone ahead too fast
D all kinds Of new and costly con
truc;ion work and improvements.
We have In fact gone ahead regard
IS Of expenses: aud railway AMI
corporations have
iretehed their credit. IN COO nasv
stances. almost 80 the breaking
Dint Meanwhile the railways ksvs
zen overtaxei with traffic and man
factories overrun With orders for
Ieir products. and thcy stiH are -
al the much dfscnzs.
and conhdcatly predicted fslilsz
Z II frada