The Washington times., 1908-12-28
Declares Government Con-
troll of Capitalization
Not a Raid.
PEOPLE WOULD NOT
FEAR TO BUY STOCK
Strong Expressions OF Mr.. Taft Fa-
voring Waterways Bond
Issue Recalled.
By 7. c. WELLIVER.

This measure doeSn represent a RAID
on the railroads." declared Senator Dol
liver, talking of his bill for control OF
the capitalization OF railroads. The
measure has been causing much COM
ment, because il is known to be in line
with the ideas of the President-elect as
well as with those Of Mr. Roosevelt
within the next ten OF twelve years,
went on Senator Dolliver, from five to
ten billions Of dollars viii have 10 be
expended in improvement Of the trans
portation facilities Of the country. The
money must be raised by selling secur-
tiles to investors. Far from making IL
harder to sell such issues, this legisla-
tion proposes to establish such public
confidence in the intrinsic values of these
securities as viii make people feel safe
IN buying them. The man who is asked
to invest in securities viii feel the more
disposed to do so when he has assur-
ance that substantial values are repre-
Sented.'
Change in Public Opinion.
The discussion Of the DOlliver bill
suggests how great a change has over
taken public opinion concerning the
power and tho desirGbility of tho Gov
ernment undertaking regulation Of such
affairs. So recently as the discussion
in Congress of the Hepburn act, it was
impossible to get serious consideration
OF a proposal for making u valuation Of
the railroads or for controlling their
issues of capitalization. Today all this
is changed, and the indications point
strongly to the probability that once
more 4 Republican Administration VIII
borrow important parts OF the Demo-
cratic platform and make them the
basis OF a legislative program.
The DOlliver bill, however, must run
the gantlet of the upper house Com
mittee on Interstate Commerce That
committee has latteTly become almost
as much a graveyard of progressive
measures as has the House Committee
on judiciary There are now pending
In II several measures Of the first i'm
portance. One is the Fulton bill, pro-
vidtng that the Interstate Commission
shall have power TO suspend a rate or
tarin of rates pending inquiry as 10 its
reasOnableness.
Came Up Last Session.
The bill came over from last session,
when determined effort was made to get
the committee to report on it. Senator
Fulton declares he was assured the
measure would be reported before the
forthcoming. So he proposes to force
an issue after the recess. He viii press
a resolution 10 discharge the committee,
and intends TO have a vote or know the
reason why not
Senator La FoTette-s bill Cor a vaIua-
t.On Of the railroads of the whole cOun-
try in a scientific, uniform. and sys-
tematic way is also In the committee.
Il came near getting a report last Ses-
sion, but the opposition managed al
ways 10 break the quorum when there
was serious danger of such action. and
so ii is still in committee. The ViscOn-
sin man has In mind 10 adopt the same
tactics as those of Senator Fulton, and
force affairs if ii is possible.
Hill Against Issue.
In connection with this matter of con-
trolling railroad capitalization IT is
noted by the advocates of internal
waterways that some startling changes
OF opinion have been wrought among
railroad men in the last year or two.
Thus James J. Hill used to be strong
for a big expenditure for waterways.
He said they were necessary to supple
ment the railroads. But more recently
ne has declared it a reckless, foolish,
and almost criminal policy to issue
bonds for such work 1t happens that
advocates OF the half-billiOn-dOllar bond
issue are ready TO quote Mr- Hill against
himself. They have a powerfI II follow
ing in Congress. and they recall some
very strong expressions Of Mr. Taft in
favor OF bond issues for this very pur-
pose. While the matter is not likely TO
get much attention this winter, It is ex-
pected 20 be az the front during the
next long session of Congress.
CTEENEDSON'S PHI