Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1908-03-18

They ministered to the needs of
Wall street, quite deaf to the needs
of commerce. Their course was that
of men who were playing with the
credit of the country for purpose.
Mr. La Toilette reviewed the
growth of Industrial reorganization
from the year 1898. which he said
saw the beginning Of the movement.
These organizations were at the
outset limited to those turning out
finished products similar in kind,
he said
Control of All Industries.
Within a period of three years
following 142 organizations were eff
fected. In making those reorganiza-
tions the opportunity for a larger
paper capitalization offered too
great a temptation to be resisted.
This was but the first stage in the
creation of fictitious wealth. The
success OF these organizations led
quickly on to a consolidation of COM
bined Industries until a mere hand
full of men controlled the CONNER
eial production of the country. The
opportunity to associate the reorgan-
ization of the Industrial institutions
of the country with banking capital
presented itself. Such connections
were a powerful aid to reorganiza-
tion and the reorganization offered
an unlimited field for speculation
1t was a tremendous temptation"
He discussed the economic devel-
opment of the country and laid spe-
cial stress on the growth of finan-
cial combinations.
Scores Aldrich Emergency Clause.
He severely criticized the provi-
sion of the Aldrich bill by which
railroad bonds are to be made Sc
curity for the emergency circulation,
and charged that it was a scheme
to defeat legislation that might low,
er railroad rates.
"As a common carrier" said Sena-
tor La Toilette. the railroad COM
pany is entitled to charge a suffi-
GENTLY high rate to pay operating
expenses and a reasonably fair re-
turn upon the fair valuation of the
property which it used for the con-
venience of the public. This is the
standard, and the only standard, by
which to measure reasonable rates
To secure the application of this
standard to the railway rates of the
country has been the object of q
struggle extending over many years
The courts have sanctioned 1t. The
interstate commerce has called it tC
the attention of congress. Tried by
this standard, If railway company
has grossly overeapitalized its prop
erty it can not rightfully impos,
upon the public a transportation
charge to pay any return or diyi
dend upon this fictitious capitalize
ton.
: 1T does not signify that the pub
! lie has not yet been able to secure
/, the application of this standard t
:, the rates of the country. Thei
cause is just and it's defeat iron
q year to year has been occomplishe'
only through the power of the in
huenees which the great Transports
!. ton companies and those intereste,
in their securities have been able I
successfully exert in preventing leg
islation.
Astounding Proposition.
To-day We are confronted with tn
astounding proposition that congress
shall hold out legislative induce
ments for the exaction Of transpol
tation charges which shall net div
/, idend on railroad capitalization.
is idle to say that this measure
limited in its scope; that it has re-
i erence simply to a limited issue {
railroad bonds as security. He
blind indeed who does not see tn
ultimate effect of a proposition ths
directly or indirectly raises a stanC
ard for the payment of fixed div
. dend upon railway eapitalizatio
:, without regard to the valuation {
I, the property.
The certain effect Of this actio
by congress is TO stimulate ever
railroad company within the pu
view of this statute to maintain II
!, position Of its bonds within the &
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