The state herald., 1907-06-07
FULL CONTROL
THE GovERNMENT'S FoLIcY
TOWARD RAILROADS CLEARLY
DEFINED.
= PRESIDENT AT IDlANAP0LIS
A Memorial Day Speech Bristling
With Aphorisms and Patri-
otic Sentiments.

address at the unvelling OF monu-
ment TO General Henry w. Lawton.
The speech was devoted to discus.
sion of railway problems and inciden-
tally paid warm tribute to Oliver
Morton, the war governor of Indiana.
He said:
"One great problem that we have
before us is TO preserve the rights of
property; and these can only be
preserved II we remember that
they are in less jeopardy from the
Socialist and the Anarchist than from
the predatory man Of wealth.
1T has become evident that to re-
fuse to invoke the power of the nation
10 restrain the wrongs committed by
the man of great wealth who does evil
is not only to neglect the interests of
the public. but is to neglect the inter
ests of the man of means who acts
honorably by his fellows.
"The power Of the nation must be
.eserted to stop crimes of cunning no
Nless than crimes of violence.
There can be no halt in the course
we have deliberately elected TO pur-
sue, the policy of asserting the right
Of the nation so far as IL has the power.
10 supervise and control the business
use OF wealth, especially in its cor
porate form.
To-day / wish 10 say word TO YOU
about the first and most important fea
ture of this task, the control of the
common carriers doing an interstate
business; control absolutely vested
in the nation, while in so far as the
common carriers also transport the
mails II is in my opinion probable that
whether their business is or is not in.
terstate 1t Is to the same extent sub
ject TO federal control, under that
clause of the constitution granting to
the national government power to es
tablih post roads and therefore by nee
essary implication power to take all
action necessary in order to keep
them at the highest point of efficiency
Every federal law dealing with cor.
porations or with railroads that has
been put upon the statute books during
the last six years has been step In
advance in the right direction. All ac-
tion taken by the administration un.
der these and the prc-eXisting laws
has been Just and proper. Every suit
undertaken during that period has
been n suit not merely warranted. but
required. by the facts; a suit in the
interest of the people as a whole and.
in the long run, particularly In the in.
terest of stockholders as well as In the
interest of business men of property
generally. There can be no swerving
from the course that has thus been
mapped out in the legislation actually
enacted and in the messages in which
have asked for further legislation.
ave hest serve the interests Of the
honest railway men when we announce
that we will follow out precisely this
course.
at is the course OF real, of ultimate,
con. n.servatlsm.
There viii be no halt In the for.
ward movement toward full develop
mont Of this policy; and those who
wish us 10 take step backward or to
stand still. II their wishes were real.
lied. would find that they had Invited
an outbreak of the very radicallsm
they fear. There must be progressive
legislative and administrative action
for the correction of the evils which
every sincere man must admit TO have
existed In railroad management In the
past.
such additional legislation. MS that
for which ! have asked in the past
end especially that for which | asked
in my message at the opening Of the
last session OF Congress. is not
merely In the interest OF the public
but most emphatically In the interest
OF every honest railway manager and
of all investors or would'be investors
In railway securities, There must be
vested In the federal government full
power of supervision and control over
lAlp,, lpt hugtna4gs
power IN many respects analogous 10
and ms complete as that the
government exercises over the
national banks. It must pos
scss the power TO exercise m.
peryiEion over the future issuance of
stocks and bonds. either through n ma
. tlonnl incorporation (which | should
prefer) or In some similar fashion
such supervision TO include the frnaS
publicity of everything which wolld'bo
investors and the public ut large have
right 10 know.
"The federal government Will thus
be able TO prevent all oyefcapitnllza
ton In the future: 10 prevent any man
hereafter from plundcring others by
loading railroad properties with obli'
cations and pockotlng the money In
stead of spending II In improvements
and In legitimate corporate purposes;
and amy man acting In such fashion
should be held 10 criminal accounta.
billty. II should be declared contrary
10 public policy honceforth 10 allow
railroads TO devote their capital 20 any.
thing but the transportation business,
certainly not to hazards Of speculation.
For the very reason that We desire Ia
favor the honest railroad manager. We
should seek 10 discourage the activities
Of the man whose only concern with
railroads IL 10 manipulate their stocks,
The business Of railroad organization
nnd management should be kept en-.
tlroly distinct from investment or
brokerage businesa. especially Of the
speculative type. and the credit and
property Of the corporation should be
dsvntSd IN The estpnEion and better