The National tribune., 1907-06-06
THE PRESIDENT
AND THE RAILROADS.
roads efficient and honest are the only
ones who have cause to oppose 1t.
CONTINUED from page one. }

No Immunity for Criminals.
Wherever evil-doers can be. they
shall be. brought to justice; and no
criminal. high or low. whom we can
reach will receive immunity. But the
rights of innocent investors should not
be jeopardized by legislation or execu-
tive action; we sanction no legislation
Which would fall heavily on them, III
stead of on the original wrongdoers or
Ibenefciaries of the wrong. There must
| be no such rigid laws as will prevent
the development of the country. and
such development can only be had if
investors are offered an ample reward
| for the risk they take. We would be
tho first to oppose any unreasonable re-
IStrictionS being placed upon the iSSu-
ance of stocks and bonds. for such
would simply hamper the growth of
the United States; for railroad must
ultimately stand on its credit But
| this does not prevent our demanding
that there be lodged in the Govern
ment power to exercise a jealous care
against the initiation of securities, and
| all the evils that come in its train. The
man who builds a great railway AMI
| those who invest in it render great
public service; for adequate transport
tation facilities are a vital necessity to-
the country. We favor full and ample
| return to such men: but we do not
| favor a policy of exploiting the many
| for the benefit of the few. We favor
the railway man who operates his rail-
way upon a straightforward and open
business basis, from the standpoint of
permanent investment, and who has an
interest in its future; we are against
only the man who cares nothing for
the property after his speculative deal
in its securities has been closed.
Valuation of Roads Favored.
Ample provision should be made by
Congress to enable the Interstate Com
merce Commission, by the employment
of n sufficient force of experts, to under
take the physical valuation of each and
any road in the country, whenever and
so soon as in the opinion of the COM
mission such a valuation of any road
would be of value to the Commission in
its work. There are undoubtedly some
roads as to which it would be an adj
vantage, from the standpoint of the
business of the Commission, to have
such a physical valuation as soon as
possible.
"At the outset let 1t be understood
that physical valuation is no panacea;
it is no sufficient measurement of d
rate; but it will be ultimately needed
as an essential instrument in admins
trative supervision. 1t will be of use
to the Commission in connection with
iilS uuAy VI TIE TedSOIdDIe-
ness of future capitalization, both as
one element TO enable such a body 10
come to right conclusion in the mat
ter. and also as an element to be placed
before the investing public, to enable
this public in it's turn to reach a con-
clusiOn; though of course, capitaliZa-
ton must be determined in large meas
ure by future need rather than past
investment. How important physical
variation will of q far
tors to assist in fixing equitable rates L
am not able to judge; but that it will
be of certain importance can 3el
safely assumed because of the opinions
of the Interstate Commerce Commits
sion and of the courts. and because of
the recent action of the Northern Pa
cific Railroad in advancing such al
physical valuation as decisive on its
SIDE in rate controversy. Such a val
uation would necessarily help to pro-
tect the railroads against the making
of inadequate and unjust rates, and
would therefore be as important from
the standpoint of the protection of the
railroads as from the standpoint of the
protection of the public; and of course
it is necessary to the enduring prosper
ity and development of the country
that the railroads shall yield reasonable
profits to investors.
Railways and National Banks.
1.-The investing public was ready to |
back with unlimited confidence the n
situations on which the Federal Gov
ernment had set the seal of its conf
dence and approval The railways
have not been given this certificate OF
character, under the seal of the Ma
tional Government, and therefore many
people who invest freely in the shares
of banks are reluctant to buy railroad |
securities. Give them the same guar
antees as to railroad securities which |
We now give them as to national bank |
shares. and we would presently see
these people investing in railroads, and
thus opening a new reservoir from
which TO draw the capital now SO much
needed for the extension and better
nsent of the railroads.
Where the Blame Belongs.
Il believe in proper publicity. There |