Los Angeles herald., 1907-03-15
MAGNATES BOW
HUMBLY BEFORE
THE BIG STICK.
Railroad Kings Ask
for Mercy
President lntimates That Those Who
Obey the Laws Need Have No
Fear--Big Conference
Monday
nx AseocIated Press.

BY Associated Press.
WASHINGTON, March H. For
more than forty-eight hours the White
House and treasury department mas
been flooded with appeals for Presi-
dent Roosevelt and Secretary Cortel-
you to take some action to avert the
"threatened disaster" in the financial
world.
It can be stated authoritatively, how
ever, that President Roosevelt will not
change his attitude toward the rail-
roads, thought II is admitted that the
administration has no intention of en-
tering on any extremely radical attack
on the railroad corporations.
While II is known that the visit OF
]. Pierpont Morgan to the White
House last Monday night to induce
the president to issue reassuring
statement to the country in regard to
the Administrations attitude toward
the railroads and the apparent failure
Of the flnancier's appeal has much to
do with the panicky conditions that
swept over Wall street today, Presi-
dent Roosevelt has repeatedly said that
he is not an enemy of the railroads and
that those who obey the laws have
nothing to fear from the government
While it has not been definitely de-
cided, the president may issue state
ment outlining his attitude after he
has conferred with Presidents McCrea,
Mellin and Hughitt on the railroad sit
uation.
Maenates Bow Humbly
The conference with railroad mag
mates, which was granted by the presi-
dent at the earnest request of Mr.. Nor
gan, will be held early next week. It
is generally understood by those close
to the president that the railroad off,
cials Will urge Mr.. Roosevelt to take
some steps to "al1ay the public anx-
iety now threatening to obstruct rail-
road investments and construction, and
as to the relations between the rail-
roads and the government"
Since Mr.. Morgan's hurried trip to
the White House the president has held
numerous conferences with Chairman
Knapp and members of the interstate
commerce commission in order that he
may be in better position to present
the administrations side of the ques-
ton when he meets the railroad presi-
dents next week.
The administration is firmly con-
WINGED that the great unrest in finan-
cia1 circles has been brought on by
the arguments advanced by the rail-
road interests in trying to prevent
hostile legislation" in the various
states and not by the attitude that the
federal government has taken to en-
force the laws regulating the common
carriers.
e. H. Hartman, when he was in
this city recently, and President A. b.,
Stickney of the Chicago Great West
ern, who called at the White House
today. have expressed Jthe same
President Well Posted
In his interviews with the members
of the Interstate commerce commission
the president is fortifying himself with
regard to all the facts that have been
disclosed during the various investi-
cations.
In this way he will be able to meet
argument with argument and fact with
fact. The president, it is known, takes
the same position assumed when he
sent his message to congress last De-
cember and called attention to the
fact that during ''the last i've months"
within which the new law is operative,
the railroads have shown increased
earnings and some of them unusual
dividends
This, the president believes, refutes
the claim of the railroads that the new
law would ruin them and emphasizes
the fact that rate legislation, either by
federal or state government, is not the
cause of the present panicky condi-
tions.
The president, too, has referred sig
nificantly to another part of his mes
sage. in which he said, at is not to
be supposed, however, that with the
passage of these laws it will be pos
sible to stop progress along the line
of increasing the power of the national
government over the use of capital in
interstate commerce.
Not Backing Up
In pointing out this and other pas
sages from his recent message to those
with whom he has talked the president
has indicated that he has taken no
backward steps in his views as to the
advisability of making the regulations
and laws still stronger along certain
lines.
Although believing that the condi-
tions in New York are due to nothing
for which the administration is re-
sponsible the president believes he has
done everything that can be conss-
tently done TO relieve the money mar
ket. The order issued by Secretary
Cortelyou yesterday, followed by the
order of today, prevents the withdraw
al of large sums belonging to the gov
ernment and provides the way for the
use of additional sums in Wall street.
The first order put quietus on the
rumor til - the treasury was to imme-
QidlCly NnQIdW the Qe-
posits pCs in the banks last October,
amounting to $30,000,000
Today NJ. Cortelyou issued an order
that the $1S.0O0,00O of additional cur
rency taken out by the national banks
could be held by them without sub
stituting federal for the state and other
bonds with which II is now secured.
This. it is pointed out, will prevent
a sharp demand for government bonds
for deposit as security.
Another lstep which will put about
S1,000.00O a day into circulation is the
deposit OF customs receipts in the de-
pOsitories as provided under the new
currency act The secretary also has
notified bondholders that he win re-
deem with interest TO July /, when
they will mature, any bonds OF the
per cent funded loan Of 1907, 10 an
amount not exceeding $25, 900. 600 These
bonds may be presented at once.
WESLEYAN MISSIONARIES
49, AEAAA--- sxsa