The Cairo bulletin., 1907-02-21
FORCES WAR ON
WATERED STOCKS
ROOSEVELT WILL NOT WAIT FOR
NEXT CONGRESS TO ACT ON
RAILROADS.
KEYNOTE or HIS POLICY
viii Be Contained in Speech at Har.
vard--Will Urge Law For Max.
ing Rate Act More
Effective.

Effective.
! Washington, y. c., Feb 20.-Pres;.
| dent Roosevelt has decided not to
walt untn the next session TO lnau-
gurate the second part of his ra lroad
| legislation program, He has already
taken steps to lay the groundwork for
the enactment of a law. intended to
check over capitalization and watering
Of railroad stocks
The other day the president called
upon the interstaate commerce COM
mission for an estimate of the cost of
occurring an accurate valuation OF the
physical properties Of the railroads Of
the country. This estimate will be re-
ceiyed within the next few days and
probably will be sent to congress with
an urgent letter asking that the
money needed be made vailable. The
president will make a series Of speech
es during the coming summer and fall
by means of which he will arouse pub
lie interest in the legislation. He
will make a speech on the occasion
of his visit to Harvard the latter part
of the week,
When he made mp his mind to visit
Harvard he told his friends there that
he would make a brief and informal
talk--just a chat between Harvard
men.
viii Sound Note at Harvard.
Since then he has decided to dcliv'
er a rather elaborate speech. In 1t
the president will reply TO the recent
speech in New York Of Representa-
tive Mccall of Massachusetts, at
tacking the Administrations central
igation policy. II is not expected that
the president will refer personally to
Mccall. but his argument. will be q
defense of the extension of power by
the federal government TO cover u2
the shortcomings of the states which
fail TO act under their reserve rights.
The president may make reference
duced at Albany, proposing confer
ence of representatives Of the states
for the purpose of enacting uniform
legislation on divorce, insurance. la
Dor, and other subjects. If the presi.
dent should refer TO this measure he
will not indorse it.
Plans Series Of Speeches.
It is possible that the president may
launch his next railroad program in a
series of speeches to the public rath.
er than by letter to congress on the
interstate commerce commissions es
innate as at first planned. He Is trc>
mendously Interested, and is devot-
ing much time TO studying its various
phases. He is comforting with mem
bets OF the interstate commerce com
IN ission and with members of the sen
ate and house who are we'll informed
on the details of the financial opera
tions of railroads.
"I. am In this fight 10 stay" the
president said TO a frisnd tho other
day. land it will be a war to the
end. realize the difficulties Of the
for three years. If necessary, TO win
In Fight TO Finish.
The president will push his reform
ideas after he leaves the White house
If his campaign has not ended sue
ces sfully by March (, 1909. Il appears
that, while the president and Senator
La Toilette are both anxious to Sc
cure a correct valuation of the physi-
cal properties of the railroads. they
desire this informal on for different
purposes. The Wisconsin senator
would use the facts as basis for
rate fixing by the government. con
tending that there is no standard now
10 determine whether rate is just
or unjust The president wants to
know Just how much cash Is repr
sented in the various roads so that
he can proceed intelligently with leg
islatiou 20 prevent watering of stocks
and oycr-capitalization
He tells his friends that there is no
occasion for legitimate investors to
feel ALA 'med over his plans for new
railroad legislation. which will
strengthen the rate Law. The presi-
dent wants TO inpart more stability
TO railroad securities by taking il out
OF the power ct The pagnates TO water
them to iEci- aoaris' content. All re,
strictiDs ,.pon the handling Of rail
road stocks cill lc CHected toward
future operation 50 ii.s present val
ues will not be disturb d.