Los Angeles herald., 1908-01-10

lkSAL mi 10 many p6OplG IehlpOi ilS
kAzMk4j depressing business, has un-
doubtedly been instrumental in prevent
ing a national disaster of far greater
magnitude than the present period OF
tension and unrest" This sentence con-
tains the gist of b. F. Yoakum's contri-
button to the Philadelphia Saturday
Evening Posts symposium on the ques-
ton, "Is Roosevelt a Menace to Busi-
ness?''-a symposium whicn mas 50 Isr TO-
vealed few opinions of compelling inter-
est. Mr.. Yoakum. who Is chairman OF
the executive committee Of the ROCK
Island railroad system, goes on to say
that the policies which the administra-
ton stands for "are healthy and will prove
constructive Taking the good with the
bad, he says. 'I believe that we are bet
ter off under the existing conditions than
we should have been had we continued
without governmental restraint TO
expose the excesses of corporate trusts,
he asserts, ''is not a detrlment, but
protection to their stockholders" His
statement is impressive. comments the
Chicago Post, because of its "broadness
of view and grasp of the Industrial sit
uation and because 1t comes from
railroad man-from the ranks OF the en-
emy according to the popular view. To
quote further from this striking state
ment:
eve have reached a point where, as
business men, we should recognize the
authority of the federal government to
exercise certain supervision over the traf-
fc of the transportation companies which
should be fair to both the railroads and
the public they serve.
ITO throw restraints about the cor
porations is to give guaranty and equal
ity and fair administration in the future.
Such policy. carried out on conserva-
tive basis must be beneficial to ALL Ii
will in the end be a safeguard to the
constructors and the operators of our rail-
way system as well as to their stock
holders, thus establishing confidence ana
giving security to the securities"
In present conditions he sees a great
opportunity for the railroads. and he ad-
monishes them not to neglect 1t:
But if the railroads fail to avail them
selves of this opportunity 1 do not be-
lieve that another one like it will come to
them again. Public pressure and public
sentiment will then force rules and reg
ulatons regardless of expediency or rea-
son. In other words, it seems to me that
the administrative and legislative bodies
representing the people and the railroad
managers representing the stock and
bond holders. should not resort to insane
opposition, but sane cooperation"
Mr.. Yoalkum admits that the financial
stringency will cause the railroads to
discontinue their policy of expansion for
a time, and that the resultant scarcity
of work will somewhat dampen the en-
thusasm of the idle over the Republican
administration" since Hardship is not
exactly conducive t. political fervor."
But he insists. nevertheless. that the
state of the country's business does not
warrant a panic"--that we are, In fact,
''in the enjoyment of real and widespread
prosperity" He concludes with the fol-
lowing confident predictions:
1--WE shall emerge from our present dis
turbances with a clearer understanding
with the government; closer knowledge
of our responsibilities to our stockhold-
ers; with our railroads and corporate
properties worth the money and based
on their actual earning capacity under
system of accounting that has the stamp
of approval of an officer of the federal
government. Therefore, when our home
bankers send their annual statements TO
their foreign correspondents they can
say, in offering our securities to their
customers, with absolute confidence that
these statements are correct and have
been carefully scrutinized, investigated
and approved by the government
This federal approval Is as near as
we can possibly get to obtaining the gov
ernment's actual guaranty upon our Sc
curities, and it will be safe and sane
substitute for government ownership,
condition for which we are not ready.
'sTnerefore, can see no reason why
permanent recession Of business should
come to the nation at this time, either
from conditions or as result of the work
the federal government has been engaged
in."
The president is not without enthu-
siastic champions among the leaders of
the banking world also. Thus Henry
Ciews, addressing a large gathering of
the Peoples institute. in Cooper Union,
New York city, scouts the idea that Mr..
Roosevelt Is to blame for the present
disturbances In the business of the coun-
try. TO quote briefly from his speech'
II ask you, as though you were em-