New-York tribune., 1907-09-19
CLEWS ON PRESIDENT,
Defends Trust Policy and FaUors
jail for Rebaters.

Louisville, Sept 1S.-A plea for the punishment
by Imprisonment of dishonest corporation officials
and protest against the tendency in certain quar-
ters to attribute the recent decline in the stock
market TO President Roosevelts policies were
made by Henry Clows of New York in an ad-
dress before the Kentucky Bankers Association
here to-day Mr Clews took for his subject The
Situation and discussed existing conditions in the
financial world at considerable length. He e%-
pressed the opinion that the administrations eX-
pressed intention to prosecute criminally the men
guilty OF Illegal practices in the management or
stock companies will prove a benefit instead cf 4
detrlment TO the cOuntry's business affairs he
said in part:
the trouble did not become acute until the fine Of
$4,000 was imposed on the STANDARD OH ;1;i GG,n-
pany OF Indiana. Then the speculative million,
aires who had been trying TO engineer an ufWa1gg
and began TO sell ONT AT whatever prices they
could obtain. Thus. with support withdrawn tnere
chief sufferers being the best and highest priced
The, apprehension excited among investors and
speculators by that s2s.29coo fine did an immense
of the oIItbern KaiIwa bv Southern states in
volving the conflict between North Carolina ana
Alabama and the United States courts tHat ar ea
the Immediate cause OF the heavy liquidation 1 tnat
produced the August crisis and turned .ht .,1tbcTp
York stock market into "A storm centre
there probability. even posi- oilltE, tE,l, or
corporation If affirmed on appeal public sen,
timent about as much disturbed as II II WI VIZ
sufficient reason fear of confscation, 1t ed 20
investors as We'll as bv speculators and the virtual
panic that lasted those two long and memoraDie
The innocent suffered with the guilty. and The
evil eeGt OF such & gf %as Gsa5 deG Ssso
The true remedy for rebating and other Tialtut
tior. GS heavy penalties on tie guilty corporations
lut or the responsible and guilty officers 81 iAose @
prSonnsnt Heavy fines infcted OF c9rpora559ps ao4r
lowering OF market prices for their stocks Inc
proper remedy is punishment behlnd iron narS.
Through overtaxing their capacity. their working
capital and their credit 70 Keep Up dd MtS e. sword
o many corporations we'll individual nrIIlSl
fo nHq much Te sF 6f tn o co4p%t dshonetg illegal
and methods and wholesale graft IN hgn lo piacTJ n5
which have seen exposed. These eNcesses anu
- are nov ~ exp"siire from time u
+f1o pa, bov- after blow to public confidence. and
kept investors from buying stocks and turned t1elr
attention and speculative enterprise in other dTeS
tons and into ether channels. These exposures
and violations of law naturally aroused sever
public criticism and indignation and ca,'eo Io' tis
IF roTrartn lstration the OF
ana the Illegal practices that had been exposed, ~
confidance among the STOCKHOLDERS of the railway
and other corporations tnat through Iia -. a.
fsss 10 securs honest and lawful methods Of
management and so protect and benefit investors
In bonds ana stocks and justice and equaIty
a for pPFT % & o. 269dge rates 1q fo m small and gre
rich and poor, without special privileges 20 any
great corporations being compelled 70 respect the
Law wen small ones The Fighting ano coz CO..
rection Of wrongs practised in violation or me
interstate and antitrust laws OF Congress Noul9
have had no disturbing effect upon investors aud
the public mind II properly viewed. and II requires
a stretch Of imagination to hoid NT Roosevelt oven
Indirectly responsible the So ooo too fire the I'M
mediate ca Ise Of the disturbance in Wall street
that followed Il. =,
president Roosevelt will always stand firm in his
r,oIicv q the Law against wronEd0ing ry
rrrnorafi0ns. heard this from Secretary Taft
IN his strong Endorsement % that policy and We
heard II -cafFfrmed in Presidents ProEincetown
speech But the penalties should always be IN
fctad on the individual officers responsible f"r v'v-
Ia,{ors OF Law. and theSe. 10 be cfcctual. should
involve imprisonment. not fines asainst them or
lie corDo-t+nus That remedy IN the only certain
cure FOR tho disease. II IL again appears,