The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1908-02-01
Governor Forts Views.

Governor Forts Views.
Just and fair regulation can only be
objected to by those misconceiving the
rights of the state. The state grants all
corporate powers to it's railways and other
public utility corporations, and may not
only modify, but repeal all charters and
charter privileges 1t confers. 1t may
therefore, impose conditions upon their
operation at its pleasure. OF course
in the doing of these things, it should act
wisely and with conservatism, protecting
all vested rights of property and the In
terests of the innocent holders of the Sc
curities of existing quasi-public corpora
tons. Regulation, therefore, upon a wise
basis. of the operation of these public
utilities companies, including the fixing
of rates and public charges, upon COM
plant and subject to court review, should
be intrusted to a proper board, as we'll
as the right to regulate the output of
stock and the bonded issues of such cor
porations. 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 depreciation. Under such
a law, the holders of existing securi-
ties would find them protected, and new
securities offered would have the conf
dence of the people, because of the guar
anty of the state that they were only
ISSUED lOT exlt1SlOnS OF DeIIeTfnenIS ana
upon some basis of the cost of such ex-
tensions or betterments 1t is difficult
to suggest any legislation that would give
greater confidence to the public and in
Vestors than a wise public utilities bill .
and the mere suggestion of its enactment
should cause this class of security holders
to feel that their holdings were strength
ened, and that the state was about to
aid the managers of its public utility
corporations to conserve their corporate
property for the public benefit and for
the protection of invested capital. - e
1.-The time has come for the strict SUI
pervision of these great corporations and
the Limitation OF their stock and bond is
sues under some proper public official
IT will make for conservatism, and
strengthen the companies doing a legti-
mate business, and eliminate, let us hope,
those which are merely speculative 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 enterprise honestly incorpor-
ated should be protected, and the public
made to feel confidence in its corporate
organization. Capital invested in corpor-
ations must be as free from wrongful at
tack as that invested by individuals. and
the state should do everything to foster
and protect invested corporate capital
and encourage the public in giving to it
support and confidence. Nothing will do
SO much to achieve this desirable re-
suit as proper supervision and reasonable
control over stock and bond issues, So
that DISQUALIFICATION will be prevented
and the people may know when they buy
a share of stock or bond that the
name of the state upon 1t stands rs a
70 there 9 value behind 1t