The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-05-31
must admit to have existed in railroad
management in the PAST.

must admit to have existed In railroad
management in the past.
Additional Legislation.
Such additional legislation as that
for which l have asked in the past and
especially that for which i asked IN
my message at the opening of the last
session of Congress, is not merely IN
the interest of the public. but most en-
phatically in the interest of every
honest railway manager and of all IN
Vestors or would-be investors in rail-
way securities. There must be vested
in the Federal Government full pow
err of supervision and control over the
railways doing interstate business;
power In many respects analogous 10
and ns complete ns that the govern
nent exercises over the national BANKS
1t must possess the power to exercise
supervision over the future issuance
of stocks and bonds, either through q
national incorporation (Which should
prcfcr) or In some similar fashion,
such supervision to include the trunk
publicity of everything which would
be investors ana the public ut large
have right to know. The Federal
Government will thus be able to pre-
vent all overcapitalization in the fu-
ture; to prevent any man hereafter
from plundering others by loading ra.,-
Way properties with obligations and
pocketing the money instead of spend
ing it in improvements and In leglti-
mate corporate purposes; and any man
acting in such fashion should be held
to criminal accountability. 1t should
be declared contrary to public policy
henceforth to allow railroads to de-
vote 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 raii-
roads is to manipulate their stocne.
The business of railroad organization
and management should be kept en-
ltirely distinct from investment u
brokerage business, especially of the
speculative type, and the credit ana
| property of the corporation should "
devoted to the extension and better
ment of it's railroads, and to the de-
lvelopment of the country naturally tri-
butary to the lines.
What Railroads May buy.
These principles are Fundamental.
Railroads should not be prohibited
from acquiring connecting lines, by nc-
uuiring stocks. bonds, or other securl :
ties OF such lines; but it is already
| we'll settled as contrary to public policy
to allow railroads to acquire control
| over parallel and competing lines or
| TRANSFORMATION. Subject to first giving
| to the government the power of super
| vision and control which | have adVo-
ICateu above, the law Snouid pe ulliehh-
led so that railroads may be permitted
and encouraged to make traffic agree
ments when these are in the interest of
the general public as we'll as of the rail-
J, road corporations making them. These
lagreemen.s should of course be made
.Ipublic in the minutest detail, and
should be subject to securing the pre-
/ vious assent OF the Interstate Com
| merce Comni So u,
The movement to regulate railways
/ by law has cDue To stay. The people
|of this coHutry bnvc m;dc up their
nsInts--nnd wisely made up thcii
nlnds--to exercise II closer contr0
over Ill kinds of pubic-service corr
porations, including railways. Every
honestly managed railway will sair
and not lose by the policy. The men
more anxious to manipulate stocks than
\ to make tho management of thel
roads efficient anu Honest are the only
ones who have cause 10 oppose it,
We who believe in steady and
| healthy progress stand unalterably fol
the new era of the widest publicity
and of fair dealing on the part OF rail
roads with stockholders passengers,
and shippers, We ask the consent OF
mo man in CARRYING out this policy; but
= we gladly welcome the aid OF every
man in perfecting the law in Its de-