The Richmond Virginian. (Richmond, Va.) 1910-1920, 1910-02-24
RAILROADS ISSUE
PAPER on hot AIR
!Congressman Townsend Tells
Why They Should Be
Controlled.
WILDCAT PROMOTERS
SEE IMAGINARY JOKER
Regulation Bill Will Put End to
Shoestring Methods, But
Will Not Hurt
Others.

WASHINGTON, Feb. e4.-"Ths
spectators. the men who want 10
make real money out of wind ant.
water, are the only people objectfns
TO the provision in my bill which
makes railroad securities Of value, !
said Representative Townsend. of
Michigan, to-day
Townsend, who introduced the add
ministrattons new interstate COM
nterce bill. was discussing the alleged
Joker" in the measure which, ii mad
been charged, was inserted In the bill
for the benefit of the big railroads.
This is the provision that no railroad
stosk shall hereafter be issned at less
than par. and no bonds shall be issued
Unless there is the actual money value
behind the paper,
Tangible Assets.
IL there is a ECKER there do not
knew Ia continued Townsend. and
you'll have to convince me OF its pres
ence. The proposition narroRs itself
down 10 this: You either want to
regulate the railroads or you don't
II You regulate them. the first thing
To- do is To make the paper they issue
represent some tangible asset. SO that
investors may know what they are
buying. II you don't regulate Them,
WHY. lei them continue as they have
An THE past and Issue ttsst as aaes.s.
millions of dollars worth of stock
upon hot air and prospects as they
think they can sell II had money
T.. invest to-day s.44ffss L d assy
railroad paper would not
would be all at sea as TO the value OF
the paper offered by the various
reads. and. being in doubt would buy
else.
Those Who Object.
''tT course. the fellows that have
made their living by promoting mag
mary roads and by selling watered
stock do not like the provisions of my
bill. and. in order to discreait ii and
perhaps secure It's defeat or amend
merit. are irving loudly that there Is
a 'Soker' concealed somewhere about
IL.
The assertion that the paragraph
relating To the selling Of stock and
lends VIII make Ii possible fer ONLY
the old established corporations to
build in new territory is utterly ride
uious, Not one single. bona fide, le-
gitimate railroad enterprise will he
crippled or hampered by this clause.
It may-hnmeser- praTent saff;e IF ttts
"
from Undertaking., and We hope 1t
will IL IL for that very purpose that
the bin Is drawn.
They claim that new roads in new
parts af the country will not be able
to sell their stock at par. | main
tain the contrary. ANY railroad pro-
iect that is needed by the country
which IL expects to serve will he able
to secure ample funds for It's constitute
ton and II won't have 10 so begging
FOR remote capital either
Golden Prospects.
Under the provisions Of my bin ii
viii not lie possible Ter d Spectator
To offer an investor railroad stock at
ten cents on the dollar, with the
golden prospect OF ten cents being
turned into dollar or ten dollars. but
every man that buys railroad paper
viti know that II has been Issued un-e
der the careful scrutiny of the Inter-
stafe Commerce Commission and the
is In measure its spon-
sor Every fair-rlindeds squared
ing railroad man i'm the country ought
10 be anxious to see that provision of
the bill enacted into law, and be-
ieve one OF that sort who understands
/. h giving /, his support
"If the railroad men who are fight
ing this bill ar any cne e9se can offer.
better suggestions for the safeguard
ing az investors and the protection af
the reputation of the roads, would
Ike to receive them"