The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-05-31
THE PRESIDENTS SPEECH.

THE PRESIDENTS SPEECH.
| In, his address at Indianapolis yes
terday President Roosevelt undoubt-
eddy outlined to the country what will
be his recommendations to the next
congress concerning railroad legisla-
| ton, just as he did two years ago on
his southern trip, when he made pub
lie the policy that was finally crys-
tallized into the Hepburn act. This
Indianapolis speech is, therefore, of
great interest to the country.
The new legislation which the presi-
dent proposes is designed to prevent
overcapitalization of railroads, and to
prevent railroad magnates from using
roads for speculative purposes, both
of which measures will be largely for
the protection of the railroad investor.
The president also takes UP Senator
LaFollette's idea of giving the inter-
state commerce commission power to
get at the actual value of the rail-
roads, as an element entering into
rate-making.
On the other hand. he would give
the railroads wider powers in the
matter of traffic agreements than they
now possess. subject to government
supervision. He also utters a warn
ing against any drastic and ill-advised
state legislation that will interfere
with securing better transportation.
All the way through he makes it clear
that proper government regulation is
as it is for the public. Property rights,
road manager who wants to do right
as 1t for the public. Property rights,
he declares, "are in less danger from
the socialist and anarchist than from
the predatory man of wealth.
The additional railroad legislation
asked for. says the president, ais not
merely in the interest of the public,
but most emphatically in the interest
of every honest railroad manager,
and of all investors and would-be in
vestors in railroad securities To
this end, the government must pos
sess the power to exercise supervision
over the future issuance of stocks and
bonds, either through a national in
corporation (Which 1 should prefer)
or in some similar form
This, he says, will not only prevent
decentralization, but it will also en-
able the government "to prevent any
man hereafter from plundering others
by loading railway properties with OBJ
legations and pocketing the money, in
stead of spending it in improvements
and in legitimate corporate purposes;
and any man acting in such fashion
should be held to criminal account
ability 1t should be declared con-
trary to public policy henceforth to
allow railroads to devote their capital
to anything but the transportation
business, certainly not to the hazards
of speculation. For the very reason
that we desire to favor the honest
railroad manager, we should seek to
discourage the activities of the man
whose only concern with railroads is
to manipulate their stocks"
In other words, in the interest of
innocent investors in railroad securi-
ties, the president would make it i'm
possible for Hartman to perpetrate
another Alton plundering deal.
Turning to the other side. President
Roosevelt states It as his opinion that
while there are some instances of
watered stock. the railroads of the
country as a whole are worth their
Capitalization. In this connection he
advocates giving the interstate COM
merce commission power to ascertain
On the railroad side of the question
he also says the railroads should be
allowed to acquire control over con-
Meeting lines but not competing lines.
Also they should be permitted and
encouraged to make traffic agree
ments when these are in the interest
of the general public as well as of the
railroad corporations making Them
but these agreements should require
the assent of the interstate commerce
commission and should be made
public.
At present railroads are prohibited
from pooling. and many railroad man
ayers asert that it would work bene-
ficially to both railroads and people
were pooling allowed. This recon-
mendation of President Roosevelt
would legalize pooling. under govern
ment control.
The president takes up the ques-
ton of the car shortage and made
quate shipping facilities generally.
1.-THE great need of the hour he says.
from the standpoint of the general
public-of the producer, consumer,
and shipper alike-iS the need for bet
ter transportation facilities, for addi-
tional tracks, additional terminals, and
improvements in the actual handling
of the railroads; and all this with the
least possible delay" In this connec-
ton he issues a warning against I'M
wise legislation
If" says the president, "the de-
mand for more taxes. for higher
wages, for shorter hours for employees,
and for lower rates becomes so excess
sive as to prevent ample and speedy
transportation, and to eat up the