Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1907-03-19


lsnsht them that national supervision OF
railroads is not 90 bad after all. State
control may be much worse. In leaping
from the frying pan Of the federal gov.
eminent, they found themselves in the
Ere of the State Legislatures, which from
the little experience they have had oft,
ia a good deal hotter than the pan
The visit OF President Charles 8. Me-
len. Of the New York, New Haven &
Hartford Railroad, at the White House
today will, il is believed, be followed by
other conferences Of like nature. Other
railroad men will come 10 add their AZ
guments for the prompt assumption OF
supervision by the national government.
The railroad magna!es are now sorry
that they did not aid the President in
his efforts TO bring the railroad business
under the supervision Of the Interstate
Commerce Commission. With halt the
States in the union Joining 10 the hue
and cry after them, the only hope they
can see ahead is the enactment OF fed
eral laws that will head of the State bills.
II Congress will pass comprehensive
bill that covers the ground, there will
be nothing left for the States to do.
The saving In lobby bills Is very large
inducement for !he railroads TO Try for
complete federal supervision. Under
the present system, the big railroads
spend barrels Of money ct every State
capital every time the legislature meets.
They are obliged 10 maintain expensive
lawyers and "public agents" who must
have big entertainment" funds with
which to keep the Legislators in good
humor. If the railroads bad only Wash
ington to watch, their troubles would
ali BIO centered here, and as the members
Of Congress are under closer scrutiny by
the country at large than are the mem
bers Of the remote State Legislatures, it
Is fair TO presume that their acts will
bear the lime light better. Many OF the
States have already enacted two-cent-
fare bills. Other States hsve passed
or are considering drastic railroad COM
mission or public utilities measures.
The prospect is gloomy throughout the
country, and the President seems
to be the only savior in sight
Before meeting his appointment with
the President this afternoon, Mr.. Mellen
had long conference with Chairman
Knapp, OF the Interstate Commerce
Commission, at the latter's Office After
his conference with Chairman Knapp,
President Mellen talked with Commits
sioner Lane, who has been discussing
railroad affairs recently with President
Roosevelt. Chairman Knapp explained
that Mellen called upon him in response
TO a special request, in order that they
might discuss certain complaints which
the commission has received. lie said
they didn't In their talk touch upon the
question of railway management.
Information comes from a creditsbe
source that the administration has about
decided upon striking change in its
financial policy. The action, if taken,
will in one particular reverse former
Secretary Shaw. and may eliminate GER
tain railroad bonds from the position
they now occupy asgilt-edged securit 70.
There is an impression here that 1t may
have been an intlmation Of what WIS to
como that sent j. Pierpoint Morgan
across the Atlantic before he had time
to put the finishing touches to the con-
ference which he tried to arrange be-
tween President Roosevelt and leading
railroad presidents. Foreign capital,
which is heavily invested in American
railroad enterprises, gives every
evidence Of extreme sensitiveness
over the present agitation, and the an.
nouncement Of what might be considered
actual hostility, might precipitate a dis
astrous furry. 1t is understood that the
new Secretary Of the Treasury, Mr. Cor.
telyou, has even more decided views upon
the subject Of acceptable securities than
has President Roosevelt. Former Sec
rotary Shaw, in his efforts to establish an
elastic currency, interpreted the law gov
erning security for public deposits in
favor of high grade Of railroad bonds.
When he wanted an increased circulat.
ion, he PERMITTED banks 10 place with the
Treasury, railroad and other bonds to the
amount they desired, conditional upon
the government bonds 80 released being
made the basis for increased circulation.
1t is said the present head OF the
Treasury Department considers such q
method Of finance as unsatisfactory, not
conductive TO financial stability and not
in consonance with the general policies
Of the government Secretary Cortelyon
will not admit that q final decision has
been reached as 10 the class of securities
which will hereafter be acceptable TO the
government He admits, however, that
the department has the subject under
careful consideration. The amount Of
railway bonds now held as security for
public deposits is about $4,000, 900.
President Roosevelt today emphsti.
cally denied that the recent visit TO the
White House Of Governor Deneep, Of
Illinois, was made for the purpose of
launching Secretary TafL's presidential
boom. Senator Hausbrough, OF North
Dakota, called at the White House to-
day TO ask about the truth of the story
and the President assured him that there
WIS no truth In II whatever and author
lied him to deny the story Just as en-
phstically as he knew how.
The State Department this afternoon
received dispatch from Philip Brown,
Secretary Of the L. S. legation at Hon.
durss saying: "Tmjillo now 10 posses
Ion of the reyolutionists. The northern
coast OF Honduras is exposed TO attack. :"