Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-07-15
TAFT PROPOSES TO SELECT USE.
Full COMMISSION TO REPORT
ON RAILROAD STOCKS.
WILL PRESENT QUESTION
so CONGRESS MUST ACT
Yaie Man May Be Chosen to Head This
Board, as Well az Tariff Commission
Much Work Involved and President
Appears to 30 Determined to Make
II Effsotive-The Situation Outlined.
Especial correspondence.l


Washington, July 15.-The investiga-
ton into the subject Of the stock and
bond issues Of the railroads promises
to take on an Importance which was
not attached to 1t when provision was
put into the railroad bill for COM
mission 20 inquire into this matter.
Reports from Beverly saying that
President Taft has offered the position
of head OF the commission to DR..
Arthur T. Hadley Of Yale make it
plain that tho president is out in quest
Of commission of big men. He wants
a commission which will go into the
capitalization question thoroughly and
without one sidedness. The 1nvesti-
cations and conclusions Of the COM
mission will constitute the basis for
any action that congress may take on
the subject of federal control of cap
italization. Or. 1t would be more cor
rect to say, the conclusions and find
tngs Of fact Of the commission Will guide
the president in making recommended
lions to congress. That body is fire.
quently disposed not to pay overmuch
attention to what a commission says.
And 1t might turn out that the recon-
mendations Of the commission, no mat
ter how eminent, would not be fol-
lowed by congress.
To Put IL Up to Congress.
Nevertheless, If an eminent commits
sion presents showing OF facts that
the capitalization Of the railroads, or
any large proportion OF them. is not
justified, 1t will be well-nigh i,npos-
sible for congress to escape from act
ing.
1t is a fact worth noticing that the
two most important commissions
which are now set in motion are tho
tariff board. which is Investigating the
cost Of production and other facts re-
lating to the tariff. and the commission
to inquire into capitalization Of the
railroads. Moreover, If DR.. Hadley ac-
cepts. Yale man will be at the head
of each Prof. H. C. Emery, of Yale,
heads the tariff board and will have
general charge Of the tariff inquiry II
him, he win supervise the inquiry on
capitalization.
Much Work Involved.
be involved in the inquiry into railroad
capitalization. 1t will be out of the
question for any report to be made be-
fore the first session OF the Stxty-sec-
ond congress- Under the circumstances,
the question Of capitalization control is
not expected to cut any important fig
ure In the next session of congress.
The scheme Of a commission to in
vestigate capitalization was looked on
with favor in the last session by those
who do not want legislation for control
Of capitalization for the reason that
they saw that by this method legisla-
tionu would be deferred. Moreover,
those who were In earnest in wanting
capitalization control. were unfriendiy
to the commission idea. They said ii
was thrust In merely for purposes OF
delay. 1t is not denied, however, even
by those anxious for capitalization
control legislation that an impartial
and thorough investigation by strong
commission may result in good and in
shedding light on many disputed points
Undeniably, the suspicion is prevalent
that there has been an enormous
amount of stock watering and that the
roads are enormously overcapitalized.
Many members of congress believe
this. It has been freely charged in the
debates In the house and senate and
these charges have been made by
members of both parties. Senator Dol
liver in a recent senate speech pre-
scented figures Of startling nature as
to the enormous flotations of railroad
securities in recent years and called
insistently for control of capitalization
And he has had the advantage Of Ions
service in the senate interstate COM
merce committee and of deep IN
sight into railroad matters.
What Taft Won't Do.
1t is not to be supposed that Pres
ident Taft will make up commission
which is opposed to government con
troll of capitalization. The president i!
for such control and has urged it or
congress. 1t may therefore be expect
ed his commission will be inclined t.
take hold OF the capitalization question
in thorough fashion, without gloves
The commission will have no end o
hard problems to face. For one thing
the question Of what constitutes tn
proper capitalization of road Is ~
easy thing to answer, just as matte
of theory The big railroad systems
have valuable terminal and main lin