New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-25
MR.. SPOONER'S WARNING
Spoke of OUercamtalisatiOn in HIS
Maiden Speech in Senate.
ITro-n The Tribune Bureau.l

Washington March 24-Ir the light Of current
appreciation Of the evils OF Overcapitalizaton or
the railroads. it of interest that the maiden
speech of John c Spooner in the Senate. delivered
on January H. 1887. gave warning to the states of
the evil they permitting, warning which,
had it been needed, might have Obviated It,
The conference report on the Interstate Com
bill was under consideration when Mr..
Spooner. then little more than forty years old.
made his first essay debater in the Senate.
and it natural that his words attracted less
attention than they would have in later years
when he had come to DO recognized as the foremost
orator and lawyer in the upper house Of Congress
However. the fact that Mr.. spoOner was inter
rupted by Senators Plat, of Connecticut. Ed
munds. Hoar Alirich and Teller, demonstrates that
the young Senator from Wisconsin attracted by
The force Of his arguments the attention OK some
of the ablest members of the Senate
The rapid growth of the country. the stimulus
OF war. the flush times following the resumption
of specie payments and the Wild spirit Of specula-
ton which flush times always bring. led TO the
too rapid construction OF railways" said MT.
spooner in beginning his remarks lie continued;
They have been built where they were not needed.
for purely speculative purposes. The striie oe
tween the competing companies has grown wild anu
senseless and out of this strife have come me
rebate free transportation. special rates coIii,S5
sions pools and all manner OF favor Isl o Siia
discrimination. These methods have been IN vogue
long that the COMPANIES seem to nave srOMHb t 80
T TS t4S hav s AIDED IN this decentralization some
what by the unrestraned generosity WIN Wntt
every state OF the Union, upon the payment Oh 4
dollar or two q franchise Is granted TO cor.
poratiOn and with the great power or ehiIenC
domain and with authority TO capitalize anu 20
bonds az will Eegardless Of the queStloll d.
to the public need utility Of such franchises. -
The immense capitalization of which the Sei1'ol
from Florida (Mr. CaD has earnestly spoken as 80
largely fictitious has. dare to say pe9u iT51st
under authority OF state legislation. IN almost
every instance In .5hiCh stocks are TO-DAY con
sdered wateTed the increase or capltal mas 49,
under authority of state laws. and II would nov ne
,nwisdom for tho states even now 10 auOFL
stringent laws granting franchises TO cotlsLr1,SS
railways only where, upon Investigation IL Is tou1iu
tbPN would serve a public instead of a purely
speculative purpose and prohibiting the issue OF
stocks and bonds except for money actually ny
vested In construction. equipment and bettetIen.,
order that looking to the great future peore US
in the way Of railway construction ana otneFWiSe
and taking Of the past. tho people sha!l ne
protected from rates Of freight which are h%sd m
part with reference to affordng interest upon
inonev which did not enter into cost.
~ the public interest. have IL understood that
this legislation In any degree FOR the purpose OF
INJECTING punishment for past corporate mlSdeeoS
or is anything other than an honest endeavor 20
fairly papabie evils and. being enacted IN
that spirit hope the carriers of the country Will
without CaptiOusness. accept it. know, as does
every member Of the Senate that after long walt
Congress shall adjourn leaving its sessions as bar
rem ~ legislation this subject as have been
those Of its predecessors. and Will not willingly
aid in such q result II felt. however. as to this
bin and construction as the Senator from KAN
sns tNir. Ingalls, has expressed himself l could
not he brought. in Difference 10 any camor or upon
any consideration. in any event to support H.