The Penn's Grove record., 1907-06-07
ROOSEVELT REASSUR|RG
TO RAILROAD INVESTORS
Restates His Policy in Address at
LaWton Monument Unwilling.
FOR FEDERAL CONTROL ONLY
Advocates Taking Away From States
All Power Over Roads-Thinks
Value of Stocks and Bonds is
Greater Than Total Face Value.

All rover over
Value of Stocks and Bonds is
Greater Than Total Face Value.
Indianapolis, Ind. - Under the
shadow of the grim Court House Of
IndiaDa's capital President Roosevelt
made a notable address, dealing with
the subjects Of railroad control and
civic righteousness. His message
though a warning to evildoers, con.
tanned much to cheer the individual
citizen, for it breathed robust opti.
mism, and assured the country that
in spite of all the watering that rail.
road shares have received they are
still worth more than their face val.
e represent.
The speech. which was delivered to
a throng Of 10000 or 10000 persons.
was the chief feature of the exercises
attending the unwilling of the statue
of General Henry w. Lawton, the In
diana hero of Civil, Indian and Span
ish war fame, who died fighting the
Filipinos after all his laurels had been
fairly won.
What the Presidential about hon
est management of the railroads was
received with tumultuous applause.
His statement that there must be
Federal supervision in the interest of
stockholders as we'll as for the protec-
ton of shippers was the hit of the
day. Mr.. Roosevelt was in splendid
voice. He spoke for more than an
hour, and was followed closely for
every minute of the time by the great
throng.
The reasoning under which the
President believes such a project to
be possible and legitimate is in the
argument that all the railroads carry
the mails and can therefore be con-
sidered as post roads.
President Roosevelt made it plain
that his desire to have all control of
railroad legislation vested in the
Federal Government is prompted as
much by a wish to protect the rail-
roads from harassing legislation by
the States as to protect the public
from oppression by the railroads.
Next to the advancement of this
project, the greatest thing in the
Presidents speech was his declara-
ton that the railroads of the country
are worth the face value of all their
securities in spite of the fact that
there have been instances of fragrant
stock-Watering and Over-capitaliza-
ton. To insure that this condition
shall remain, and that the value of
railroad investments shall not deter
iorate, he declared that with the
bringing of all railroads under Fed
eral control, the issuance of railroad
stocks and bonds should be brought
under Federal control. Thus what
ever securities were put out would
have the Governments guarantee
that they were issued in good faith
and we're not the mere fruits of infla-
ton.
While the President, at the same
time that he was declaring his conf
dence in the worth of the railroads
and his determination that they
should be protected from unwise leg
islation and harassment, went fur
Their in favor of governmental control
of railroads than he ever went before,
he took occasion to declare positively
against Government ownership. He
said:
at is plainly inadyisable for the
Government to undertake to direct
the physical operation of the rail-
ways, save in wholly exceptional
cases, and the supervision and con-
troll it exercises should be both en-
tirely adequate to secure its ends and
yet no more harassing than is neces'
sary to secure these ends"
An epitome of what the President
declared for is as follows:
Exclusive Federal control and SUI
pervision of the railways.
Exclusive Federal control of all
mail-carrying railroads, including
those which operate wholly within
the borders of any State.
National supervision owe future
assurances of stocks and bonds.
A national incorporation that
would give the roads the seal of Gov
eminent approval such as national
banks now enjoy.
Criminal prosecution of any mar
who plumbers others by issuing great
masses Of securities and sells them
for fraudulent or selfish interest in
stead Of applying the money s. &C.
quired to the legitimate use of the
road on whose property the securities
were issued.
Protection of the honest railroad
manager, whose aim is to maintain q
high standard of efficiency in his road
and seek an honest and legitimate re-
turn on the money invested.
Allowing railroads to acquire con.
Meeting lines, but f%orbidding them to
combine with parallel lines.
Public traffic agreements in the in.
terest of the people, subject to the
approval of the Interstate Commerce
Commission.
Physical valuation of railroad prop.
critics, such valuations not to be re.
troactive, and present securities to be
tested by the laws under which they
were issued.
i. The divorcing of railroad manage.
ment from stock speculation.
The President admitted the posi-
bic necessity of Government opera,
ton of railroads by declaring against
it "save in wholly exceptional cases.