Omaha daily bee., 1910-02-13

banks. Of hat which but for the oppor-
tunlty they would not save but spend. The
low interest offered to It, that OF : per
cent. prevents such postal savings banks
from interfering with regular savings
hanks whose rate OF interest always is IN
excess Of , per cent. In the present stage
Of the senate bill. there have been inserted
amendments drawn apparently for the pur-
pose OF having money deposited as savings
in government postoff1ces distributed
through the locality where deposited in the
banks. state and national, and when de-
posted 70 make It impossible for the trus-
tees Of the fund appointed under the law to
withdraw the money for investment in any
other form.
Amendment May Defeat Law.
81 regard such an amendment as likely
to defeat the law. First. because Il takes
away a feature which ought TO be present
In the law 20 assure its oonstitutionality.
II the law provided that the trustees to
be appointed under the law, with the
funds thus deposited, could meet the
financial exigencies of the government by
purchase or redemption OF the government
2 per cent and other bonds, the measure
would certainly be within the federal
power, because the postal banks would
then clearly be ar instrument OF the ma
tional government in borrowing money.
We have now about 5000. 600, 900 Of 2 per
cent bonds, with respect to which we WI
a duty to the owners to see tina those
bonds may be taken care Of without re-
duction below tht par value thereof, be-
cause they were forced upon national
banks at this low rate In order that the
banks might have a basis of circulation.
This implied obligation OF the government
the postal savings bank funds would
easily enable 1t to meet, Secondly, IL the
funds are to be arbitrarily deposited In
all banks, state and national, without ma
tional supervision over the state banks,
and a panic we're to come, II is difficult
to see how the government could meet its
obligations to its postal savings bank de-
positors. because with every bank sus-
pending payment the funds OF the postal
savings banks would be beyond the con
troll of the government and we should
have a financia disaster greater than
any panic we have hitherto met. A pro-
vision that when the money Is not needed
TO invest in government bonds or TO re-
deem the same II may be deposited in
national banks in the neighborhood of the
place of deposit will avoid the great dam
ger OF a panic and will strengthen a
banking system which is an arm of the
federal government. 1 sincerely hope
that before the measure Is hammered into
its final shape 1t may take on these char
acteristics, which shall give it a consti-
tuttonal validity and sound financial
strength and usefulness. Those who in
sist upon the elimination Of these two
necessary, characteristic features OF the
bill win put the party in the position
where It cannot hope to escape the charge
49, "A n ~ " -~~1 10 81 Aha
passage Of a postal savings bank act, and
Is not seeking therefore to comply with
the promise of the republican platform
in that regard.
Regulation of Railroads.
ION the subject Of railroads, the repub-
lican platform said:
We approve the enactment OF the railroad
rate law and the vigorous enforcement by
the present administration of the statutes
against rebates and determinations as a
result Of which the advantages formerly
possessed by the large shipper over the
smaller shipper have substantially disap-
peared; and in this connection we com
gress to enable the Interstate
commission to thoroughly Investigate and
give publicity to the accounts of interstate
railroads. We believe, however, that the
interstate law should be further
amended so as to give railroads the right
to make and publish trattic agrsements
N.N
but maintaining Away the principle OF
competition between naturally coinpetiting
lines and avoiding the common control of
such lines by any means whatsoever. We
favor such national legislation ard super
vision as will prevent the future overissue
OF stocks and bonds by interstate carriers.
Bills In Both Houses,
"a bill to carry out these declarations
has been introduced in both house and the
senate inc is now being considered before
the appropriation committee Of these two
bodies and there is every hope that the
bills thus introduced in substantially the
same shape as introduced will be enacted
into law. Indeed this railroad measure
goes further than the promise of the plat
form. for while 1t subjects the issue of
stock and bonds to the restrictive super
vision of the commission, prevents further
watering OF securities and forbids the ac-
QUESTION by a railroad company of stock
In a competing line. it also puts much
more power into the hands OF the commits
sion for the regulation OF rates and 1t
facilitates in every way the ease OF super
vision by the commission Of the railroads,
to secure a compliance by the railroad with
the right of the public and Of the shipper.
The bill was prepared by the attorney gem
eTal, after q full conference with the Inter
state m commission, the repre-
sentatives Of the shippers and the repre-
sentatlves Of the railroads, and while it
was not the result of an agreement Of all
OF the parties interested, 1t was drafted
with a view of meeting all the fair objec-
lions made by every one of them.
Modification of InJunctiOns.
''The platform further provided:
'"The republican party will uphold at all
times the authority and integrity Of the
courts. state. and federal. and win even
insist that their powers to enforce their
| processes and to protect life, liberty and
property shall be preserved inyiolate. We
believe, however, hat the rules TO pro-
Gedure In the federal courts with respect to
the issuance of the writ OF injunction
sh1uld be more accurately defined by stat
ute ana tina no injunction or temporary
restraining order should be issued without
notias, except whore irrepsrable injury
speedy hearing thereafter should be
"A bin to carry out exactly this promise
has been introduced into both the senate
and hause, and will doubtless come up for
consideration and passage, The bill does
not go as far as Mr.. Gompers and the FED
Grafton OF Labor demand. but ii goes as
far as the republican convention was will
ing to let II so. and it is so drawn as to
make an abuse OF the issuance of injunc-
ton without notice very improbable. II re-
quires that no injunction shall be issued
without full notice and hearing unless to
prevent ~irreparable injury. and that In such