The Washington herald., 1907-05-31
FRIDAY. MAY 81, 1907.
The Presidents INDIANAPOLIS Address.

AAAN EAN-AA~AAA = AAAAtdAAd DbAtE AdAAN11.
While President Roosevelts Indianap-
ellis speech may be regarded as in some
respects reassuring 10 holders of railway
securities. we do not discern in it any
indications Of a moderation of the Exec
utive purpose 10 extend and strengthen
Federal control over common carriers.
in fact, the President declares that the
movement for national control Of rail
roads must go forward on substantially
the lines marked out by recent legisls-
tion, though he is at some pains to make
It clear that the government will not run
amuck among railway corporations. OF
pursue any policy that would endanger
security values or ruin railway credit.
An obvious spirit Of fairness and justice
pe-meates the whole address, which cor
tains emphatic warning not only 70 cor
porate offenders. but also to those polit-
ical evil-doers whose stock in trade is
Smashing the corporations"
The President adopts fully the view that
TIE Federal government alone is compe-
tent to exercise complete supervision and
control over railway corporations, going
50 far as to express the opinion that even
intrastate railroads may be subject 10
Federal jurisdiction under the clause Of
the Constitution giving Congress author
ity to establish post-roads
There must he vested ia the Federal government
full power Of supervision over the railways doing
an interstate business power in many respects
analogous 70 and as complete as that the govern
me- .E-
scss the power 20 exercise supervision over the future
issuance of stocks and bonds either through a na-
tJud incorporation (which I should prefer or in
some similar fashion such supervision to include the
flank publicity Of everything which vouldbe in
vestos and the public have right % know
Thus does the President describe the
main features of the new legislation he
thinks desirable; but DE would not for
bid the acquisition by railway corpora
tons of connecting lines. nor would he
forbid traffic agreements when such we're
clearly in the interest of both the public
and the roads.
The policy Of more stringent Federal
control of railways. and particularly
Federal supervision Of security issues.
the President defends on the ground that
it would equally benefit the public and
the carriers. With full publicity Of rail
way affairs and the guaranty Of the gov
ernmeut as to the substantial value Of
railway security Issues he points out
those who are now reluctant TO invest in
such issues would have the same conf
denCe I'm them that they now have in
national bank stock. and I'VE would pres
emily see thesc people investing I'm rail-
roads and thus opening a new reservoir
from which to draw the capital now so
much needed for the extension and bet
terment of the railroads" But he would
not make the supervision Of railway Sc
curites retroactive. Such securities as
are in existence he would allow to stand;
"the nation in his view. would no more
injure securities which have become an
important part Of the national wealth
than il would consider a proposition to
repudiate the public debt"
So much for the Presidents positive
programme. There is a negative side 10
the administration railroad policy that
will not altogether please those reform
ers who would squeeze the water out Of
railroad capitalization, for Mr.. Roosevelt
rejects altogether the idea that the rail
roads OF the country, as whole. are
oyercapit1lized. Assertions that they are
he sets down as wild talk" Admitting
that there have been fragrant instances Of
overcapitaI.zatiou here and there. the
President is convinced that evidence is
ample that the great mass OF our rail
road securities rest upon safe and solid
foundations" However. he favors a phys
zeal valuation OF railroad properties for
the purpose Cf establishing a basis for the
determination of rates and the reason
ableness OF future capitalization. And.
finally. he warns the shipping public that
it may be doomed to disappointment If it /
expects any general scaling down Of rail-
road rates by the Interstate Commerce /
Commission for the betterment OF the
transportation service, now a most press
ing need, VIII make il impossible to lower
rates without practically putting a stop
10 Improvements, by deprivlng railroad
corporations Of the means Of making
them and Of the credit required to OBJ
tain the necessary funds.
We may observe in the Presidents rail- |
road programme. AS now elaborated. that
remarkable mixture Of moderate radical !
ism with due regard for vested interests !
which has characterized his entire eco
nomic policy, and which undoubtedly has |
been one OF its main elements Of popular /
strength. A man who has brought to- 1
gether on a common platform the pro- |
grsssive railway men Of the country and /
the progressive political thinkers OF the |
day, who has amalgamated the opinion |
Of the common people and the railroad |