The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-03-21
Hartman Tells Rockefeller
'Taint So About Railroad
Decentralization.
SITUATION is INTERESTING.
JOHN o. APPEARS SOMEWHAT So
CIAlISTiC IN HIS VIEWS AND
THE WIZARD OF THE RAIL
COMES BACK HARD.

NEW 1pFhs Mdrcn -ls-rs II. ftafTl-
man says "T'aint so" following John
ID. Rockefellers sensational Interview
of yesterday in which the oil king de-
clared that our railroads over capi-
taliZed etc. the little railroad king
is to the front with an equally sensa-
tional statement today. Hartman
denies that our railroads are over capt.
taliZed. says there is enough federal
control now, that English financiers
are pikers, and that there is no dang
er of a panic or violent reaction, re-
sulting from our present prosperity.
which Rockefeller fears is unhealthy
growth,
OF overcapitalization. Mr.. Rockefel-
Ter said: Il think that properties
should be capitalized at only their le-
gitimate value, and If that were done
there would be such a feeling of Sc
curity in them among the general
public that we would find men with
a little money holding highly profi-
table stocks. instead Of allowing ii to-
remain at small interest in savings
banks"
Would Not Suggest Remedy.
Mr.. Rockefeller. however, was I'M
able TO suggest a remedy for existing
cases of overcapitaliZation. He said.
in his judgement, it would be next to-
impossible TO reduce such capitaliza-
ton now without causing chaos, but
for future corporations he would sug-
gest conservatism.
Asked if he thought the conference
between the railroad men and the gov
ernment would be beneficial. Mr.
Rockefeller said: II can not say. II
is my idea that federal control would
be a better thing for the roads. they
would then understand the laws they
must observe and would be able to
plan ahead intelligently without one
states suddenly demanding one thing
and another state being equally insis-
tent on something entirely different.
The interstate situation and the differ
entiation in the state laws is, / think
one of the greatest problems railroad
men haye TO deal with
Ominous Undercurrent.
Speaking of the general financial
condition of the country. Mr. Rocke-
feller said: "On its surface it is good.
seems to be satisfied But there is
an undercurrent that does not look so
good. | have not quite made up my
mind if the increased production OF
gold is responsible or not 1t is i'm
possible to see how such situation
will work out. Personally, / do not
like the outlook.
Il do not think our people are saw
ing the money they should save. The
nation at the present time Is unusual
ly prosperous. but financial reports
do not show that saving has increased
in ratio with our prosperity. We are
making more money. and. unfortunate
ly spending more"
Concerning Stocks.
Concerning stocks. Mr.. Rockefeller
said: Regarding the stocks which
seem so alluring TO the public have
but single observation to make. If
man goes into the street and finds
certain stock that is declining con-
stantly. although it is paying 6 per
cent dividend. it seems strange that
he does not stop TO consider that il the
stock is such good proposition the
men back of it, with plenty of money
at their command, did not keep ii In
their control. Is it reasonable TO
suppose that if in good, legitimate
way the stock is actually earning
per cent, and will continue to do so.
it would be allowed to go out of the
hands of controlling interests?''
Asked what his financial policy for
a big railroad company would be, Mr..
Rockefeller had this to say:
Il am not railroad man. so 7 can
not say. but generally speaking,
would like TO see the class of citizens
who have their money in savings
banks holding the stocks and bonds.
/ presume any socialist would shake
hands with me on that point without
public confidence in our corporations.
Of course, that situation can be only
dream.
Comments on the English Plan.
In England the shareholders have
something to say about how their cor
porations shall be run. Any man own
ing few shares can always get
hearing. He simply has to notify the
management that he desires to ad-
dress IL, and he can be sure that ne
will have an opportunity to say what
is on his mind. Sad to relate, man
in the same relative position in this
country wouldn't be considered.
1T would not be q good thing for us
10 adopt the English plan as a whole.
think 1t goes rather too far and
prevents men from rising. Something
after their method which would give
broader opportunities for the builders
and creators and planners would be
more TO our American liking, for af-
ter all, the country owes a great
thing to these very men whom we are
so prone to criticise Americans
want great opportunities and they
should be limited only by what is