Los Angeles herald., 1908-02-01

competition and, in short, wrongdoing
generally.
Judge Hough of New York, in his re-
| cent decision in the Hartman case,
states that the congress possesses the
power to limit the interstate operations
of corporations not complying with fed
eral safeguards against the recurrence
of obnoxious practices, and to license
| those which afford the public adequate
security against methods calculated 10
| diminish solvency, and therefore efIl-
| cheney and economy in interstate trans
portation. The judge adds that in these
matters 1.-The power of congress is am
pie, though as yet not fruitful in re-
| suits" 1t is very earnestly to be de-
| sired that either along the lines the
Judge indicates or in some other way
/ equally efficacious the congress may
use the power is possesses.
| Specifically it may seem that the
! laws, the passage of which 1 again adj
vocate-for 1 have repeatedly advocated
them before-are not connected, but IN
reality they are connected. Each and
| every one of these laws, if enacted, will
represent part OF the campaign against
privilege, part of the campaign to make
! the class of great property holders real
! ize property has its duties no less
than it's rights. When the courts
Favors Laws Governing Gambling
do not know whether it is impos-
| sible. but, If possible, it is certainly
| desirable. that in connection with
! measures to restrain stock watering
and overcapitalization there should be
measures taken to prevent at least the
grosser forms of gambling IN securl-
| ties and commodities, such as making
| large sales of what men do not pos
! sess and "cornering" the market.
Legitimate purchases Of commodl-
| ties and of stocks for investment nave
no connection whatever with purchases
| of stocks or other securities or com
modities on margins or for specula-
| five or gambling purposes. There is
no difference In gambling at cards or
| in lotteries or at the race track and
| gambling in the stock market.
One method is just as pernicious to
| the body polite as the other kind, ami
in degree the evil worked is far great
| err But it is a far more difficult sub
| ject with which to deal. The bulk OF
! the business transacted on the ex-
! char ges is not only legitimate, but is
! necessary to the working of our mod
ern industrial system and extreme
care would have t. be taken not to In
| terfere with the business in doing away
with the bucket shop" type of opera
ton. We should study both the sue
cesses and failures Of foreign legis-
lators who notably in Germany, have
worked along this line, so as not to
do anything harmful.
| Moreover, there is a special difficulty
| in dealing with this matter by the
federal government in a federal re-
public like ours. But IL it is possible to
devise a way to deal with 1t the effort
should be made, even If only in a
cautious and tentative way 1t would
seem that the federal government
could at least act by forbidding the
/ lie toIo q md tnln-
| phone wires for mere gambling in
stocks and futures, just as 1t does In
lottery transactions.
Octopus Statements UntruthfuI
I enclose herewith a statement is
sued by the chief of the bureau of
corporations (appendix u. In answer
to cerain statements (Which / also
enclose) made by and on behalf of the
agents of the Standard Oil corporation
| (appendix p and a letter of the at
torney general (a9pendix - contain
ing an answer to certain statements,
also enclosed, made by the president
| The Standard Oil corporation and the
railroad company have both been
f1un guilty by the courts of crimf-
nal misconduct; both have been sem
| fenced to pay heavy fines, and nave
issued and published broadcast these
statements asserting their innocence
and announcing as improper the ac-
ton of the courts and juries in con-
Victing them of guilt.
These statements are very elaborate
and are very ingenious and are UNI
truthful in import and the particulars.
The following letter and enclosure
| from Mr.. Heney sufficiently illustrate
the methods of the high officials of
the Santa Fe and show the utter falls.
| ity of their plea of ignorance, the
plea of the Standard Oil company
being equally without foundation:
Department of Justice, Office of the
District Attorney, District of Oregon,
Portland, Ore, Jan. II, 19OS.-The
President, Washington, D. c.: Dear
Mr.. President-I understand that Rip
ley of the Atchison, Topeka & Santa
Fe railway system has commented
with severity upon your attitude
toward the payment of rebates by GER
tain trr nscontinental railroads and
that he has declred that he personlly
never knew anything about rebates
being granted by his road.
"I enclose you herewith copy of
letter from Mr.. Edward Chambers.
general freight traffic manager of the
Santa Fe, to Mr.. G. A Davidson. au,
ditor of the same company dated
February 81, 1907. /"
This letter does not deal with inter-
state shipments but the constitution
of California makes the payment of
rebates by railroads felony, and Mr..
Ripley has apparently not been above
the commission of crime to secure bus
mess. You are at liberty to use this
enclosure in any way that you think
it can be of service to yourself or the
| public.
Sincerely yours
FRANCIS j. HENEY."
Ripley Understood Arrangement