Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-07-13
OWN THE RAILROAD
And Other Large Corporations
Governments Remedy for
Existing Evils
LAID BEFORE STATE LAWYERS
Edward M. Shepard of New York City
Advances Some Original Ideas
on the Subject.
LAID BEFORE STATE LAWYERS

Illinois State Bar association here yes
terday were told that the only soutio2 |
of the present unrest and dissatisfac-I |
tion with financial conditions obtaining |
all over the country was government
ownership of large corporate holdings. |
In a speech on Corporate Capitali-i
zation and Public Morals" Edward NJ |
Shepard of New York City pointed OUT
to the delegates the basis for his coI-
clusions and utilizing railroads as sA
example, stated that large capital
would refuse to risk itself in any fu"- |
thCr venture where there is chance |
of federal regulation. Mr.. Shepard |
said:
People May Not Insist.
If the American people shall insist, |
as | am confident they will not, that
such limitation is to be hereafter I'M
piled in railroad charters, it is certain
that government ownership of rail
roads to be hereafter built, is the only
logical solution of the problem and is
already assured Under that limita-
tion no railroads will be built except
as feeders to railroad systems already
existing. and where the traffic to a GER
tainty already exists
Could Not Inauguratc.
While Mr.. Shepard believes that the
ultimate end of the present railroad
rate agitation will lead to government
/ ownership, he expressed doubt as t.
the ability of the government to carry
on pioneer movements on the large
| lines that have in the past character
lied the operations of the present rail
roads.
IF government ownership be cstab-
lished, it is obvious that the genius
and courage which have in the past
done so wonderful work for the Am
erican continent, is to have no place il
the future" he said.
Can Find 81 Cure.
| While Mr.. Shepard believes thet
government ownership will ultimately
be an institution of American govern
ment, he stated that if concerted ac-
ton was taken at this time on the
part of law makers all over the coun-
try, cure would be devised.
In Illinois, New York and many
other states the law, upon the inccr-
poration of company for railroads
banking, industrial or other business
requires filing of articles which dc.
scribe the total capital in dollars, the
number of shares into which it shall
be divided and the par value of each
share
Not on Par Value.
But why should the total capital be
fixed on the par value of the share?'
demanded Mr.. Shepard. "'If one hol Is
100 shares of Illinois Central stock. he
ought not to think of it as $4,000 in
that stock but as 100 cut of the $780,
400 equal parts into which the net
property, business and franchises of
the country are divided. He knows
THAT in the estimation of the experts
who buy and sell that stock, its shares
are now worth the s100 paid in bI;
$144. the price on the New York ex
change
Abolish Nominal Capitalization.
81 would abolish nominal capitalize
: ton and not the requirement that I
company shall have any given actu2
capital
The convention wound up its affair:
t with the election of officers followe,
= by banquet.
: James H. Matheny of Springfield wa'
y elected president of the association, 7
Up. Williams of Galesburg and E. \
I Bancroft of Chicago being chosen frs
l. and second vice presidents, respec
e lively. John j. Voigt, Jr. of Mattoo
a secretary last year, was reelected.
~ Attacks Roosevelt.
ie President Theodore Roosevelt wa
unscathingly and relentlessly attacke
- b. Lieutenant Governor Lawrence
- Sherman last night in a speech deliN
: cred at the banquet of the Illinois Stat
Bar association.
Surprised as were the men who wer
. here from every county in the stat
the rhetorical flights which Sherma
= called to his aid, when he had ''hit hi
gait as they say down in McDonoug
county, held all in close attention.
. Compares to Secession.
Q "The lawless attempts to invade tt
reserved domestic powers of all til
,ir states of the union is as dangerous {
to the attempted secession of part of the
We from the union" cried the lieutenal
al governor, and a large number of II
lawyers cheered him. Much approb
he ton came from the contingent of mel
IN bers of the association who had talkt
I'm strenuously from the railroad stan
be point during caustic debate on Il
in railroad rate question during the afte
noon.
ed Shepard Joins in Applause.
he Edward NJ. Shepard. one time can'
he date on the democratic ticket for Il
he mayoralty of Greater New York, nc
'ri- attorney for the Pennsylvania railroa
iid and who had previously paid an e
quent tribute to Governor Hughes