Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-12-10
PREPARES LAW
TO AID STOCKS
SENATOR D0LLIVER WOULD
CHECK WATERING
CLAIMS MEASURE WILL PROTECT
ALL SECURITIES
Bill introduced by lowa's Scion De-
eIared to Be Intended to Regu-
late Bonds of Transport
tation Companies

WASHINGTON, Dec. "a far
reaching bill for the regulation of
the future issues of securities by the
transportation companies and tele-
graph and telephone companies en-
gagged in interstate commerce was IN
troduced in the senate today by Mr.
Dolliver, one of the authors of the rail-
road rate laws.
1t is said the measure represents the
administration view. Mr.. Dolliver ex-
planned the provisions of the bill by
saying the measure is designed to sub
jeet the future issues of stocks and
bonds by transportation companies,
telephone and telegraph comanies en-
gagged in interstate commerce to the
scrutiny of the government of the
United States.
The bill is drawn on the theory that
these corporations should be so or
ganized that there should be just anu
equitable relations between their as
sets and their liabilities 1t is intend
cd to prevent overcapitalization, stock
watering, bond manipulation and all
similar abuses.
The effect of it would be to give
stability to the existing volume of
railway securities and at the same time
TO, so guard future issues as to give
normal values to stocks and bonds.
The bill is applicable to all corpora
lions which are subject to existing
laws. Tor the TeIuIdllOn OF lHlerSldLS
commerce and in addition to telephone
and telegraph companies engaged in
interstate commerce.
Needs of Forest Reserves
A distinguished assemblage of wit
nesses testified today before the house
committee on agriculture on the needs
of the federal government establishing
forest reserves in the White noun
tains and in the southern Appalach-
ians.
1t marked the opening of the fight
in this session of congress for the Gre
alton of these reserves to protect the
navigability of navigable streams,
purpose which the committee comedies
is excellent.
Governor Chamberlain of Oregon,
former Governor George c. Pardee OF
California and DR.. Edward Everett
Hale, chaplain of the United States
senate, were among those who APP
peared.
Chairman Scott of the committee said
the house committee on the Judiciary
had questioned the constitutionality of
the congressional action on the part
of congress looking to the purchase of
land for the conservation of forests,
whatever it might do toward protect
ing the navigability of the streams of
the country.
Governor Chamberlain of Oregon told
of the benefit Of the system of federal
forest reserves in his state and de-
clared that if the nation does not now
take the action proposed. it sooner or
later will be compelled to do so at a
greater cost
Cannon Discusses Congress
Speaker Cannon declared today that
not since 1890 has there been a time
when under the rules of the house
either under Republican or Democratic
control a majority of the members had
not been able to register their will in
Legislation.
He made the assertion in speaking to
a delegation of the Ohio Valley I'M
provement association, which. through
its chairman, presented him with
memorial urging the Improvement of
the Ohio river at a cost of $4,000 000
to be paid in bonds.
ST appreciate" said Mr.. Cannon,
"that you approach me because l am
speaker know they say that / am
the car and that have more power
fo-bind and to loose than had st. Peter
when it was said of him, 'On this rock
I build my church. But that is incor-
rect. The speakers function is to pre-
side over the house and to enforce Its
rules and nothing more"
He then declared that in view OF this
fact it would rest with the committee
on rivers and harbors to make recon-
anendation in this as well as all other
InaIIeIS 70 Tic improvement
of the waterways OF the country.
The speaker assured his hearers he
had no doubt that the committee would
give the subject its very best consid-
Grafton and believedsthe inland water
WAYS improvement would progress
with the increase of population.
improvements Under Contract
Referring to the suggestion for the
issuance of bonds he called attention
II. all 4Traw.
nients of the kind are made under con-
tract and said the country had never
failed to provide the money for such
work.
II cannot tell" he said, "how the
money is to be obtained for the vast
improvements needed but that there
will be sufficient for all necessary
changes 1 am quite certain.
ssIn the swing of the twentieth CEN
fury / have no doubt there will be
expended no less than 900 IN
the Improvement of the waterways OF
the country, but necessarily some of
this work must be done by those who
must follow after US"
He was not unmindful, he said, that
there were some who did not want to
wait on "the swing of the twentieth
century, because many of them would
then be in a region where it would be
necessary to clothe themselves in as
bestos. but he maintained that such
course might be necessary.
The delegates were received later by
President Roosevelt.
system Is Defended
Representative Crumpacker today
defended the system of appointments
prevailing heretofore and which 1t is
proposed to continue-that is, Of de-
termining the fitness of an applicant
and then leaving it to the Judgment of
the director of the census to make the
selection regardless of the ratings OBJ
tanned. Mr.. Crumpacker remarked that
the various civil service reform asso-
Citations did not know what they were
talking about when they wanted the
temporary census clerks appointed in
the regular way.
Mr.. Hepburn said in his judgment the
census bill and its provisions were a
fair representation of the pretensions
of civil service.
He declared civil service had effect
ed no Improvement and that men ne
had appointed twenty-five years ago
were today better clerks than those the
civil service commission is providing
THE argument in favor of that service,
he said. was simply a cowardiy at
tennpt to avoid the responsibility that
men take upon themselves when they
need friends.
The amendment was lost, S. to 119,
a4a.1r trn4r Ntm