The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1907-05-31
ROOSEVELT URGES FEDRAL
CONTROL OF ROADS TO CURB
OVER CAPITALIZATION EVIL

| :
has besn put upon the statute books
during the last six years has been a
step in advance in the right direction
All action taken by the administration
under these and the pre.existing laws
has been just and proper
Benefit to Public and the Roads.
Such additional legislation as that
for which | have asked in the past,
land especially that for which ] asked
in my message at the opening Of the
last session of congress, is not mere
lily In the interest of the public, but
most emphatically in the interest of
every honest railway manager and of
| all investors or wculd-be investors In
vested in the federal government a
| full power of supervision and control
over the railways doing interstate
business; power in many respects
analogous to and as complete as that
the government exercises over the ma
tional banks. II must possess the
power 10 exercise supervision over the
future issuance of stocks and bonds,
either through national incorpora-
tion (Which | should prefer or in
some similar fashion, such supervision
to include the frank publicity OF
everything which would-be investors
and the public at large have right
to know. The federal government
will thus be able to prevent all over
capitalization in the future; to pre-
vent any man hereafter from plumber
ing others by loading railway proper
ties with obligations and pocketing
the money instead of spending ii in
improvements and in legitimate cor
porate purposes; and any man aet-
ing in such fashion should be held to
a criminal accountability.
Would Bar Speculation Hazards.
1t should be declared contrary TO
public policy henceforth to allow rail |
roads to devote their capital to any
thing but the transportation business |
certainly not to the hazards of specu-
lation For the vgry reason that we |
desire to favor the honest railroad |
we should seek to discourage |
the activities of the man whose only |
concern with railroads is to manip-
ra .lroad organization and manag ameht
should be kept entirely distinct from
investment or brokerage business, es-
pecially of the speculative type, AMI
the credit and property of the cor
poration should bt devoted to the ex'
tension and betterment of its ra'i'
r ads. and to the development OF the
naturally tributary to the
lines. These principles are ffunda
mental.
Favor Publicity Of Agreements
Railroads should not be prohibite1 |
from acquiring connecting lines py
aca1iring stocks, bonds, or other Sc
curities of such lines; but 1t is already
we'll settled as contrary to public poi
lev TO allow railroads to acquire con
troll over parallel and competing INES
of transportation. Subject to first
giving to the government the power
of supervision and control wnlch !
have advocated above, the law shouia
be amended so that railroads may pe
nermitted and encouraged to make
traffic agreeme nts when these are III
the interest of the general public as
well as of the railroad corporations
making them. These agreements
should of course be made public IN the
minntest detail. and should be SUD
iect to securing the previous assent OF
the Interstate commerce commission
REGULATION Has Come to stay.
The move ment to regulate railways
by Law has come to stay. The people
of this country have made up theif
minds-to exercise a closer control
over all kinds of public-service COT
porations, including railways. Every
hon SLY managed railway will gain
and not lose by the policy. The men
more anxious to manipulate stocks
than to make the management of their
roads efficient and honest are the only
ones who have cause to oppose 1t.
we who believe in steady and
healthy progress stand unaiterably for
The new era of the widest publicity.
and of fair dealing on the part of rail-
roads with stockholders. pass ngers,
and shippers. We ask the consent oil
no man in carrying out this policy;
but we gladly welcome the aid oil
every man in perfecting the law In
its details. and in securing its enact
ment and ths faithful observance OF
It's wise provisions.
Wants Safe, Sane Laws
We seek nothing revolutionary. we
Iask for such laws as in their essence
nov obtain in the stsld old Common
wealth of Massachusetts; such laws
as now obtain in England. The pur
nose of those OF us who so resolutelI
believe in the new policy. In It's th9r
ough carrying ost and in its progres
sive development, is in no sense punl
live or vindictive. We would be tn'
! arfist TO prot st against any form
: conhscation Of property. and whethe
We pprotested OF not. | may add tina
the supreme court could be trusted II
any event to see that there should D.
Ito. ...,,a urdar the gflisp of Tegu