The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-08-01
BRISTOW'S OPENING SPEECH.
Reviews Charges Against Long and
Claims That "Case Has Been Made"

J. L. Bristow, who opened the de-
bate with speech of so minutes in
length, reviewed the numerous
charges which he has made against
Senator Long at various times, and
Insisted that Long answer the ques-
tions which he has propounded.
Mr.. Bristow was troubled consider
ably by his voice, which was hoarse,
and showed the effects of the hard
work Mr.. Bristow has been doing.
Mr.. Bristow said in opening the de-
bate: When l announced my candi-
dacy for the senate, / declared in favor
of certain policies. When Senator
Long announced his candidacy for re-
election at the state convention he de-
clared that he would make the race
upon his record, and stand for the
things in this contest that he had sup
ported in the senate. The question for
the people of Kansas to decide, there
fore. is do they believe in the things
that l advocate and declare for or the
things that Senator Long stands for
as shown by his record. In my an
nouncement 1 declared that 1 was op-
posed to the Aldrich currency bill as it
then existed. My objection to the bill
was that it made railroad bonds the
basis for federal currency. United
States two per cent bonds during the
last year have sold as high as $1.12.
Their normal value is from S1.04 to
$1.05 The abnormal price was the re-
suit of the financial panic. The reason
that United States bonds were so high
during this period was because they
could be used by the national banks
as the basis for issuing currency,
thereby enlarging their circulation dur
ing the time of financial distress.
IF you legislate into railroad bonds
this same element of value, the result
will be that during periods of financial
depression this kind of personal prop
erty will advance in value, while all
other kinds of property will decline.
and the holders of railroad bonds and
the railroads that desire to issue bonds
would be the beneficiaries of such leg
islation and not the general public,
and l am opposed to such legislation.
This feature of the bill was withdrawn
by Senator Aldrich, its author, after
he had been notified by ten Republican
senators from the west that they would
fight the bill unless that provision was
taken out. These ten western sem
ators consisted of the two senators
from Wisconsin, the two from Nebras
ka, Senator Curtis of Kansas, Borah
of IDAHO and four. others. If l had
been in the senate there would have
been two senators from Kansas pro-
testing against this feature of the bill
instead of one, and the number of
western senators against the measure
would have been eleven instead of ten.
Public Service Corporations.
81 declared also in favor of the en-
actment of law forbidding over
ca pitalization of public service corpor-
ations. The railroads of this country
have been built almost wholly from
money received from the sale of first
mortgage bonds. The subsidies given
by the people and the money received
from the sale of stock is used to pay
the expenses of promotion and the
| preliminary expenses for right of way.
survey, etc. The money used in actual
construction is secured by the sale of
| first mortgage bonds. After the rail-
| road is built. if it appears to have
great earning capacity, and the pro-
motors of the road think that it can
pay interest on a larger bonded in
| debtedness, they proceed to bond the
| road for more money, sell the bonds
| Improvement of the line, but in specu-
lative Enterprises or investments. This
| process has gone on from time to
1 time until there are roads that are
bonded for two and three times what
| they cost.
"The bonds of railroad are a
mortgage on the commerce of the
| country through which the road runs
| and the interest on those bonds must
| be paid from the revenues derived by
the road from the people who patron
| iZe it. Just as the interest on the
mortgage on a stock of goods is frs,
lien on the profits of the man that
runs the business, so is the interest or
the bonds of a railroad a first lien or
the commerce of the country through
which the road runs. 1t must be paid
by the merchant who ships his good.
and the farmer who ships his product
Therefore, whenever a railroad com.
1 pany bonds its line for an amount o.
money and uses that money for som,
purpose other than the construction
Il 1c.<>=4;x...a<l