The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-02-24
Michigan Representative De.
clares Spectators Are
Its Only Opponents.
DENIES A JOKER
is IN THE BILL
" oNerine Member Says Object Is
Simply TO Protect Those
Who Buy Stock.

the speculators-the men who want
TO make real money out of wind and
water-are the only people Directing 10
me provision IN my bill which makes
railroad securities of value exclaimed
Representative Townsend. Of Michigan.
Nh. Townsend, who is the author OF
the Administrator new interstate
commerce bill, was discussing the al
legged Joker in the measure which. Il
Is charged, was inserted in the bin for
the benefit of the bis railroads. This
ls the provision that no railroad stock
shall hereafter be issued at less than
par, and no bonds shall be issued unless
there Is the actual money value behind
the paper.
II there Is a joker there, / do not
knew It." continued Townsend. and
youn have 10 convince me of it's pres
enee. The proposition narrcNs itself
down TO this: you either wart 10 regu-
late the railroads, or YOU don't ~ you
regulate them, the first thing to do is
10 make the paper they issue represent
some tangible value, SO that investors
may know what they are buying. II
YOU don't regulate them, why let them
continue as they have in the past and
issues just as many millions of dollars
worth OF stock upon hot air and pros
poets as they think they can sell. II
had money to invest today, DO YOU think
q buy railroad paper 4 would not. L
would be all at sea as tO the value Of
the paper offered by the various roads,
ana, being IN doubt, would buy some
thing else.
OF course the fellows who have made
their living by promoting ina Cinary
roads and by selling water stock do
not Ike the provisions OF my bill, and
in order 10 disCredit 10 and. perhaps,
OBTAIN It's defeat Or amendment. are
crying loudly that there is joker
concealed somewhere about IT, The as
seTuon that the paragraph relating 10
the selling Of stock and bonds will
make II possible for only the old ss-
taollShed corporations 10 build In new
territory, is utterly ridiculous. 7 main
tain that not one single. bona hc. lr-
climate railroad enterprise viii he
either crippled or l8mpcTed by this
clause. Il may, howe, -r. prevent some
OF the wild eat, Sheastriug railroad
schemes from materializIng, and we
nope II will II is for that purpose
that the bill is drawn.
Ihey claim that new roads iu new
parts OF the country VIII not be able
10 sell their stock az par 7 maintain
the contrary ANY railroad project that
is needed by the country which r. eZ-
poets to serve, VIII be able to secure
ample funds for its construction. and
II won't have TO go begging for re-
mote capital, either
Under the provisions of ms bin it
will not be possible for a Spectator To-
Offer an investor railroad stock at 80
cents on the dollar, with the golden
prospect Of the 10 cents being turned
into a dollar or so, but every man that
buys railroad paper Will know that 81
has been issued under the careful scru-
tiny Of the Interstate Commerce Com
mission and the Government is i'm a
measure it's sponsor. Every fair-minded.
square-dealinE railroad man in the
country ought 70 be anxious 10 see that
provision Of the bin enacted into law.
and ] believe every one of that sort
who understands IL Is giving IT his sup
port
IF the railroad men who are lighting
this bill or anyone else Gan offer better
suggestions for the safeguarding Of in
tation Of the roads 7 would Ike 90 re-
ceive Their"