The Detroit times., 1908-02-12
Rrs.' SECURITIES
SHOULD PAY FOR
IMPROVEMENTS
-sENAToR p. G. KNOX.
KALAMAZOO LINCOLN CLUBS
GUEST SAYS MONEY SHOULDN'T
BE SUBJECT TO "sURREPTI-
Tious suesTRAcTIoNs."
SENATOR p. C. KNOX.

KALAMAZOO, Mich. Feb. 12.-Sen
ator Philander G. Knox, OF Pennsyl-
vania, last night addressed an audi
ence of 1000 In the Academy OF mu-
sic, on the subject, The people, the
railways and the national authority"
The occasion was the Kalamazoo Lin-
coin club banquet. A reception was
held prior to the spread.
Senator ]. c. Burrows OF this city
was POSTMASTER. Besides Senator
Knox, ether speakers were Congress
man J. Adam Bede OF Minnesota. and
Chas. C. Slmons, OF Detroit Congress
man Bedes address was on "Happi-
ness" and Mr.. Simons made plea for
the adoption OF the revised state con-
stitution.
Senator Knox. after touching upon
the history OF the struggle of the rail-
roads with the hard conditions impos-
ed by the individual states, led up TO
where federal Intervention came IN,
based on the interruption OF commerce
between the states. He then said In
part:
The agitation for railway legisla-
ton preceding the passage or the act
OF 1887 which created the interstate
commerce commission was caused by
the fragrant disregard by the general
officers OF railroad companies OF their
obligations to the public and their
duties to their security holders.
The general purpose of that law was
L IN. tho aunaIffy ~ right hQfwRPn
shippers and communities which had
been SO generally ignored. Favored
| individuals and localities had been
enriched, and unfavored ones had been
brought to poverty. Much relief was
anticipated from this measure, and. in
deed, the grosser forms OF discriminat-
ing favors were for time apparently
checked.
| Northern Securities Case.
The organization OF the Northern
Securities Co. to throttle railroad COM
petition in the northwest and the fact
that the large beef packers and grain
dealers in the middle west had enter
ed into illegal arrangements with the
railroads for rebates and discriminate
| ing advantages in transportation
which gave them complete menop-
oily of business formerly enjoyed by
large number OF persons distributed
over the entire country, developed a
situation In the early days OF the
Roosevelt administration which re-
quired prompt atcion along new and
untried lines. The first important
act OF the administration affecting
this subject was its declaration that
the plenary power OF congress over
all kinds Of transportation and its
instrumentalities had not been ex-
hausted by the Sherman antitrust law
nor by the interstate commerce act,
and the announcement that steps
would be taken at once to secure In.
terpretations of all existing laws, with
q view of confirming the theory OF the
completeness OF the federal power as
appended to the situation and as a
guide In considering the necessity for
new legislation.
High railroad authority has de-
clared the necessity of spending S.
250.000,000 during the next two
years In extensions of the railroad
facilities, to meet the growing de-
mands of the country, coupled with
grave doubt whether the securities
to pay these expenditures can. be
fioated. In view of that very doubt.
thought 1T is questioned whether 1t Is
subject within federal authority. it
is OF the utmost Importance that the
y5,250.000,000 of securities shall pur-
chase the full $5.250, 000, 900 worth of
improvements, and not be subject to
Wholesale though surreptitious sub
fractions. Surely investors will buy
bonds which represent 100 per cent
of their face In actual increase OF the
value OF the property more readily
than bonds which only enhance the
security of so, 10 or even 80 per cent
OF the increase In liabilities. Surely
stockholders will find more satisfac-
ton In their property, II 1t is not bur
dened with charges to pay interest
on 20 to 80 per cent of bogus indebt-
edness. Surely the great body of
industry will be less provoked to
enmity IL their traffic Is not called
upon to pay fixed charges on that ele-
ment Of pure imitation
Enough Federal Power.
There Is nothing I'm present condi-
tions requiring any strain upon our
Institutions to supply remedy for any
there are no mischiefs the correction OF
which may not be attained without dis
turbing the public welfare. There Is
enough federal power. IL not enough
federal legislation to meet all federal
emergencies. Laws enacted under the
public authority in a spirit Of wisdom
and liberation, enforced impartially,
promptly and fearlessiy. repealed when
found unsuited TO conditions or TO be
oppressive. will not only mark US as a
people progressing In the art OF self
mum any conflict between the people
and the railroads between whom there
should be the peace that will enable