The Topeka state journal., 1908-01-31

| papers WOulQ nave come IN Dy pod
from the coast fields.
I am writing this up completely 81
that there may be in the papers his
tory of the reasons why this arrange
ment was made. 1 wish you would g
ahead and make. the adjustment al
soon as possible, as the Associated Oi
company are very anxious to have thu
| matter closed UP. The arrangement
| was Cancelled on November Is at con
ference between Mr.. Ripley, Mr.. Wells
| Mr.. Porter, and myself.
| Yours truly,
EDWARD CHAMBERS.
| hipments-Associated Oil Company
| Mr.. G. A. Davidson, Auditor Los
| Angeles.
They Teach Dishonesty
| The attacks by these great corpora
| tions on the administrations actions
have been given a wide circulation
throughout the country, in the news
papers and otherwise, by those writers
! and speakers who, consciously or un-
consciously, act as the representatives
of predatory wealth-of the wealth ac,
cumulated on a giant scale by al
forms Of fniquity, ranging from the op-
| preston of wageworkers to unfair and
unWholesome methods Of crushing out
competition, and to defrauding the pub
lie by stock jobbing and the manipu-
lation of securities. Certain wealthy
men Of this stamp, whose conduct
should be abhorrent to every man OF
ordinarily decent conscience, and who
commit the hideouS wrong of teaching
our young men that phenomenal bust
ness success must ordinarily be based
on dishonesty, have during the last few
months made it apparent that they
have banded together to work for a
reaction. Their endeavor is to over
throw and diScredit all who honestly
administer the law. to prevent any ad-
ditional legislation which would check
and restrain them, and to secure if
possible freedom from all restraint
which will permit every unscrupulous
wrongdoer to do what he wishes un-
checked provided he has enough mon
ey- The only way to counteract the
movement in which these men are en-
gagged is to make clear to the public
just what they have done in the past
and just what they are seeking to ac-
complish in the present.
The administration and those who
support Its views are not only not en-
gagged in an assault on property, but
are strenuous upholders of the rights
is admirably stated by Governor Fort,
of New Jersey. in his recent inaugural
address; the principles which he up
holds as regards the state being of
course Identical with those which
should obtain as regards the nation.
Just and fair regulation can only be
objected to by those misconceiving the
rights of the state. The state grants
all corporate powers to its railways and
other public utility corporations, and
may not only modify, but repeal all
charters and charter privileges 1t con-
fers. 1t may, therefore, impose cOndi-
tions upon their operation at its pleas
ure. OF course in the doing of these
things, it should act wisely and with
conservatism. protecting all vested
rights of property and the interests of
the innocent holders of the securities of
existing quasi-public corporations. Reg
ulation, therefore. upon a wise basis,
of the operation of these public utiH-
ties companies, including the fixing of
rates and public charges, upon COM
plant and subject to court review,
should be intruSted to proper board,
as well as the right to regulate the out
put of stock and the bonded issues of
such corporations. If this were done,
1t would inure to the benefit of the
people and the companies, for it would
fix the value of such securities, and act
as a guaranty against their deprecfa-
ton. Under such a law, the holders of
existing securities would find them pro-
tected, and new securities offered would
have the confidence of the people, be-
cause of the guaranty Of the state that
they were only issued for extensions or
betterments and upon some basis of
the cost of such extensions or better
ments. It is difficult to suggest any
legislation that would give greater
confidence to the public and investors
than a wise public utilities bill; and
the mere suggestion of its enactment
should cause this class of security hold
ers to feel that their holdings were
about to aid the managers Of It's pub
lie benefit and for the protection of
invested capital.
THE time has come for the strict
and the limitation Of their stock and
bond issues under some proper public
official. 1t will make for conservatism, |
and strengthen the companies doing
legitimate business. and eliminate. let
US hope, those which are merely spec |
ulative in character and organized
simply to catch the unsuspecting or
credulous investor. Corporations have
come in our business world to remain |
for all time. Corporate methods are the |
most satisfactory for business purposes
in many cases. Every business or en- |
Lerprise honestly incorporated should |
be protected, and the public made to |
feel confidence in it's corporate organ |
zation. Capital invested in corpora |
lions must be as free from wrongful |
attack as that invested by individuals, |
and the state should do everything to |
foster and protect invested corporate |
capital and encourage the public In CIV |
ng to it support and confidence Moth |
ng will do so much to achieve this |
desirable result as proper supervision |
oond Issues so that overcapitalization |
will be prevented and the people may |
know when they buy a share of stock /
Or a. bond e that the name Of the |
state upon it stands as a guaranty that |
here is value behind it and reasonable
safety in it's purchase. The act must
make it clear that the intent of the
by the commissioner is not
.or the purpose of striking at corpor
ate organizations or invested corpor
70 h1lf rather TO raCOFn1Za and !
protect existing conditions and insure |
greater safeguards for the future.
Capital does not go into a state
where reprisals are taken or vested |
interests are injured; 1t comes only
where wise, conservative. safe treat
nent is assured, and it should be our
policy to encourage and secure corpor-
tie rights and the best interests of