Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-10-26

for or against the authority to do what
Il universally agreed should be dsne
| thru either state or national action.
For years the national government has
been attempting to protect the people
against unreasonable or discriminatory
railway rates Every student Of the
subject has known during all this time
| that our efforts to this direction could
not be wholly successful until the
ommission which supervised the rates
knew the amount OF railway capital on
| which a reward could be fairly de-
| manded. It is absurd to expect that
! the interstate commerce commission
| can inteuigently prescribe the maxi
| mum Of railway revenues unless IL, or
some other tribunal. has determined
| the capital upon which interest or divi-
dends must be paid. The history OF
| railway capitalization is simply a re-
| cita1 Of bonds and stocks issued at the
| pleasure of promoters with no regard
| for the investment in the properties,
and with little regard for their value,
even from the standpoint Of the rail-
way companies The result is that we
| have something like seventeen and a
| half billions of railway securities in
quate returns, but we are In absolute
| ignorance of either the amount of
| money which the railways have cost,
or the value which computed accord
| ing to any proposed standard should
be accorded to them.
capitalization is the Rub.
Without inquiring into the subject
further, or concerning ourselves at this
time with any one of the various plans
for repairing the wrongs of the past,
I take up the accepted judgment Of all
! disinterested men that there can be no
adequate regulation of our railways,
! their rates and their practices unless
we can for the future see to it that
| there can be no capitalization of COM
mon carrier corporations. either by way
| of bonds or of stocks, that does not
! truthfully represent money actually
used by the common carriers in the
betterment or enlargement Of their
properties. This restriction SO vital in
its character and SO acknowledged in
its necessity. can be put upon these
corporations only thru legislative act;
and here the real difficulty appears. 1t
| must be done either by state legisla-
lures or by congress. We now have
forty-six states and will shortly have
forty-eight The man who believes
that there is any hope of securing from
these state legislatures with their
varying interests series Of laws that
will CO operate with each other so that
the capitalization of our great railway
systems can be efficiently guarded is a
living example Of fatuous imbecility.
Every sound and Thoughtful person
knows that if we are to have adequate
legislation upon this subject 1t must
come from congress.
Congress Must Restrict.
The republican party, as a whole. be-
lieves that the restriction of the capt.
talization of interstate railway COM
panies is a regulation of interstate
commerce. The democratic party, as
a whole, believes that it is not regu-
lation of interstate commerce. There
are some republicans who. conceding
the power, are SO blind 10 their duty
! that they are not willing to exercise
, the power, and they ought to be re-
lieved from the responsibilities of Of
fee with the utmost expedition; but 1t
would be a sad commentary upon the
intelligence of our voters to substitute
for such republican, a democrat who
denies the existence Of the power. and
whose presence in office would add
siren 9Th to an organization which re-
fuses upon constitutional grounds the
relief so imperatively required.
Personally, shall employ what little
influence I have TO induce republican
voters to nominate for public place
men who are in sympathy with such
Ia reform, but / will never consciously
aid in the election OF candidate whose
denies tho Of ta 1,ntfpd
States power. fairly bestowed. which
the welfare of the country so insistent-
ly demands. could safely rest upon
the general course of the democrats
during a hundred years for my con-
clusion as to their attitude upon the
specific question I have mentioned, but
u am not driven to any such Specula-
ton
Evils Are Apparent.
During the last session Of congress.
and while the proposed amendments
to the interstate commerce law were
under consideration. my distinguished
colleague in the senate. for whose I'M
timely death the nation is now in
mourning, offered provision, plain and
simple, in its terms, which. had 1t
been adopted. would have forbidden
and prevented overcapitalization. There
were some republicans who opposed 1t
upon the pretense that it was not care
fully prepared, and that it ought to
come up as an independent measure.
but the democrats, with very few ex-
ceptions. opposed it, because there was
no power on the part of congress to
interfere with the stocks and bonds
issued by a corporation created by
sovereign state. The republicans who
opposed the provision will, predict,
never again vote against it for they are
hearing now the unvarnished opinions
Of mighty constituency. but the DEM
ocrats will always oppose 1t because 1t
| is not consistent with their ancient
theory Of the constitution. Every voter
should help his government in Kidding
| the country OF the evils Of the over
| ca pitaliza ton OF our transportation
companies. evils already overpower-
ingly great, but which II unchecked. will
grow immeasurably greater and should