Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-02
A LIVELY CoLLoQUY
SENATOR SMITH CRITICISES
THE ALDRICH BILL.
Says It May Force the Government
to Become the Owner of Rail
road Property.

Senator William Alden Smith of Michi-
gan. in his maiden speech in the Senate
this afternoon. accused Senator Aldrich.
chairman of the financial committee, of
having drawn a currency bill that might
force the government to become the owner
Of railroad property and that was drawn
for the evident purpose of creating a bet
ter market for certain privileged railroad
bonds. He is the second republican SEN
ator to openly attack the Aldrich bill on
the floor, and he succeeded in drawing
from Senator Aldrich a number of hot
retorts. In the course the debate
which was precipitated Senator Bever-
idge of Indiana indicated that he was in
sympathy to some extent with the views
of Mr. Smith.
1t is very paradoxical, according to Mr..
Smith, that the government should be pass
ing anti-railroad legislation las fast as
we can call the roll" and at the same
time should be proposing to enact other
Mr.. Smith prophesied that in few years
the managers of railroads will come to
Congress and demand that Congress cease
enacting legislation to regulate them, be-
cause it may injure the securities held by
the government as a basis of currency.
May Have to Buy in a Bond Issue.
1T is a long step toward government
ownership of railroads. announced Mr..
Smith. vigorously. for the government
may have to buy in a bond issue in order
to protect itself.
"Our party cannot afford to enter the
great campaign ahead of us with any such
legislation to our credit
The greatest interest in the speech and
the subsequent debate was evidenced by
the democrats. Senator Tillman, as soon
as Mr.. Smith concluded his speech, an
nounced that it was very beautiful
thing to see this little exchange of COM
plments between our friends on the
other side
In reply to the Michigan senator. Mr..
Aldrich declared that he was very much
puzzled at the formers argument. He
did not see. he said, that there was any
basis for his charge that the government
would be discriminating against all rail-
road bonds not made available as the
basis for a currency issue, because the
proportion made available would be so
small that the others would not be az
fected
Mr.. Aldrch declared with some heat
that no senator had right to say that
the committee considered the effect OF
the proposed legislation upon any rail-
road company or stockholder. 1t was the
purpose of the committee, he said, to
legislate for the good Of the country and
that alone .
But the purpose is very apparent.
was Mr. Smiths retort. 1T Is TO IN
crease the value of these securities
.'How so?" demanded Mr.. Aldrich.
ION it's face said Mr.. Smith.
Action of Secretary of Treasury.
Senator Bailey of Texas broke in to ask
whether or not the Secretary Of the
Treasury was not now receiving as securi-
ties the very railroad bonds under con-
sideration. When Mr.. Aldrich admitted
that he was, the senator from Texas
asked whether he was not doing so in vio-
la ation of the law, but Senator Aldrich
failed to reply.
Senator Beveridge wanted to hear eX-
actly what Mr.. Aldrich had to say in re-
ply to Mr. Smiths charge that the gov
ernment might have to go into the rail-
road business If the bill was passed.
Mr.. Aldrich denied that there was any
such possibility, but failed to impress Mr..
Beveridge with his views.
Senator Bailey announced 1t as his be-
lief that the same condition might arise
today under the practice of the Secretary
of the Treasury, and asked Senators
Smith and Beveridge whether they would
join him i'm condemnins this practice.
Debate WAS shut off by demand for
the regular order from Senator Gal
linger