The Washington herald., 1907-06-23
Politics and Einancc

Frank A. Vanderlip. vice president of
the National City Bank Of New York. In
AN address to the Virginia Bankers. As
sociation. gave an Illuminating exposi-
tion Of the so-called "reactlonary'' view
Of the influence Of recent economic Iegis-
lation upon the financial and industrial
situation. Although that situation Is sti1
a strong one. Mr. Vanderllp predicts
recession Of trade and period of smaller
industrial totals Political sentiment dom
mates conditions Of trade and finance
and until the principles upon which fu-
ture corporate legislation Is 10 be based
are settled. until Il is determined whether
justice and fairness are 10 dominate the
minds Of legislators. or merely the die
tates Of political expadiency. Mr.. Wander
lip believes the check 70 advancing pros-
perity will continue. Our business. I'm
his judgment VIII go forward or back
ward, solely as the result Of whether or
not the public and the public's legisla-
tive representatives are wise and patient
or hasty and inconsiderate." Mr. Wander
lip concludes that
II 'he intricate problem of railway regulation is
worked ont in spirit q fairness and intelligence
if the Tastness Of the problem IS recognized If .he
involved relationships Encountered are taken into &C.
count and the farreaChing effects Of pa,erual rsr,
lations when applied 10 50 great and complicated
network are rrck0ned with and il an Intelligent un
Outstanding Of fhe complications will cad 20 n IA
ticnt attitude toward results then / heliave we win
resume the road toward further prosperity.
But If we are % have legislation based uran 10
htcal advantage: II we are 70 adop, za-islisti-
theories which viii amount 70 the c0ufscati-1 of
property rights if are 70 have reTrisaI for uas,
wrongs no matter how real, If action is the one
thing wanted fr-t, and che consideration of the
Intelligence and fsiuess Of eich action is 20 come
aiterTsrd then I believe It Is possible that the
whole business structure NAV be facing a danger
The proportion of which viii be measured bv the
z1Ine vast figures as have been the totals that have
marked the extent Of cur prosperity"
Mr.. Vanderllp does not blink the re-
sponsibility Of high finance for popular
feeling against railroad and Industrial
corporations. The panic" Of three
months ago was due not only 10 appre-
tensions as 70 the tendencies Of Iogisla-
ton. but also to conditions which led
the public to question the integrity Of
the management OF corporations" While
investors were alarmed rs 10 the posi-
biiities Of unfair legislation. the public
had its confidence shaken and its susp.-
cions aroused in regard to the integrity
and good faith Of men in high position i'm
politics and finance, and It was developed
that s'rai1rood r11Dauarg ~ - zr----
seen clearly their responsibility as trus-
tees for all the security-holders whom
they represented" Railroad practices
had grown up that were open 10 sharp
criticism. and the railroads In many
cases had been controlled BIZ operators
who furnished good ground for passion.
prejudice. and unfairness in proposals /
for railroad regulation. In view of all
that has been done and has been omit
ted by railway managers" admits Mr..
Nanderlip, 1T is perhaps not surprising
that there has come into the field of
railroad legislation and regulation much
vindictiveness. unfairness. and haste"
But with any real reformation of the
railroad practices which have aroused
criticism and infiamed public opinion we
feel. the spirit Of vindictiveness and uD-
fairness will disappear. President Roose- /
welt and Gov Hughes. the two evecu-
tives commanding the widest audience
nave both expressly repudiated policy
Of untairness or vindictiveness toward
corporate interests. and public sentiment
cannot be far behind them. Notwith-
standing the gloomy forebodings Of those
who fear the advance Of governmental /
functions into new fields Of action. there
is much greater probability that govern.
mental action viii be less efficacious than
is hoped in protecting the rights Of the
public than there is that such action /
viii endanger the rights OF property or
the security of investments. However.
It is well TO remember that as Mr.. Van
derlip suggests. there is an ever present