Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1907-05-31
PRESIDENT MAKES SPEECH ON
REGULATION OF CORPORATIONS

hLuULHl IUN
Continued from page 81
standpoint the human equation
is, the management Of the road lis
more important by far than the ply
steal valuation; and the physical VAL
uation of the road in one region may
have an entirely different relation to
the real value OF the road than in
another region where the conditions
are utterly different. Therefore the
physical valuation can never be more
than one Of many elements to be con-
sidered; but it is one element, and at
times may be very important ele-
ment. when taken in connection with
the earning power, franchises, origi-
nal cost, character Of management.
location, and business possibilities. in
reaching an estimate on the property
and rights of Incorporation as q go
ing concern. 81 sss.s.
Laws Must Not BE Retroactive.
The effect of such valuation and
supervision or securities can not be
retroactive. Existing securities
should be tested BY the laws in exs
istence sat the time Of their issue.
This Nation would no more iniure Sc
curities which have become an impor-
tant part OF the national wealth thaa
it would consider a proposition to re-
pu1diate the public debt. But the pub
lie interest requires guaranty against
improper multiplication Of securities
in the future: Reasonable regulations
for their issuance should be provided,
so as to secure as far as may be tina.
the proceeds thereof shall be devoted
to. legitimate business purposes.
IA In providing against overcapi- !:
talization we shall harm no hui !:
man being who is honest; and we ::
/ ]: shall benefit many, for overcapi- !:
1: talization often means an infta- !:
ton that invites business panic; Z.
it always conceals the true rela- !:
ton of the profit earned to the /:
capital invested, creating bur /:
den Of interest payments which |:
i may rebound to the loss alike OF I:
re-: the wage-earner and the general !:
public, which is concerned in the !:
!: rates paid by shippers; it dam !:
!: ages the small investor, discour- ::
B 8: ages thrift, and puts a premium ::
/: on gambling and business trick !;
cry. :4
There is an essential difference be
tween private and quasi-public prop
I erty which justifes setting some
I where limit beyond which the ac-
/ cumulating value in quasFpublic
properties, due to the necessity of a
growing community, shall not be
& capitalized.
One Of the most important features
of the Hepburn Act is its having
given the Commission absolute con-
troll over the accounts Of railways.
& The Commission has just issued an
order to the effect that on July 1,
next all the railways Of the country
subject to the Jurisdiction of the Com
mission must standardize their ac-
: counting methods, and the Commits
. sion lis now organizing a bureau Of
special examiners, whose duty 1t will
! be, among other things, to see that
i the books Of the carriers are kept in
conformity with the rules laid dowa
Z by the Commission.
There need be no fear on the part
g Of investors that this movement for
national supervision and control over
railways viii be for their detriment.
re they doubt this, let them study the
history of the railway control move.
rnent in such a State as Iowa.
Simply Reiteratien.
Y ALI this, my friends, Is substanti.
n ally what ! have said over and over
again. Surely, it ought not to be nee
essary to say that It in no shape or
Z way represents any hostility to cor
porations as such. On the contrary,
+ IT means a frank recognition Of the
fact that combinations of capital
like combinations Of labor, are q nat.
{ ural result Of modern conditions and
OF our national development. Az Tar
sas in my ability Hes my endeayor Is
and will be to prevent abuse Of power
3 BY either and to favor both 50 long
as they do well.
=. -. .ss.ssss
The aim OF the national Gov :
E.