Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-08-21
LooriNG OF LINE BY STOCK
MANiPULAroRs TO BRING
DEMAND FOR LAWS.
FEDERAL REGULATION
OF STOCKS AND BONDS
Commissions Report Emphasizes Need
For Federal Supervision - Necessity
Long Known in Congress But Action
Always Blocked by Special Interest
and Southern Democrats.
Especial Correspondence

Washington. Aug. 21.-One effect OF
! the expose of the methods Of high
/ finance connection with the Rock
Island road, which has just been made
/ in the report of the interstate COM
/ merce commission, will be to strength
1 en- the demand for legislation in con-
sress next winter for the federal con-
! tro. of stock and bond issues.
/ The commission in its report. after
recounring the manner in which the
holders of Rock Island securities were
/ bled, emphasizes the need Of legisla-
ton OF this sort. The commission
points out that the present holders OF
stocks and bonds of the Rock Island
holding companies have that which is
of little value.
Coming on the heels of the New
Haven disclosures and of other in
stances wherein the need OF rigid con-
troll OF stocks and bond issues has
been demonstrated. it might be sup
posed congress would hasten TO enact
vigorous legislation. But while the
Rock Island report Will serve to MAKE
the demand for such legislation great
do anything about it.
Manipulation Unheeaed.
The subject has been before congress
al every session for years. The rea-
sons for the need of such regulation
have been strongly presented to both
houses. But such reasons have not
moved majority TO act. Meantime
manipulation OF securities Of railroads
has gone on. Has congress provided
for adequate government control OF
stocks and bonds when 1t passed the
Hepburn Deliver law In 1905. much OF
the complaint over the Rock Island,
the New Haven and other transactions
costly to stockholders and security
holders would never have been pos
siole.
South Objects.
The difficulty in the way is. first.
that a large number Of southern demo-
Gratis, still insisting on state rights, OBJ
jecr to streng theninE the federal gov
eminent By giving il such large super
visory powers. AT least. this objection
is always voiced in house and senate
II is an objection that plays into the
hands of those railroad iuanciers VINO
are glad to see il blocked in congress
on any excuse. In addition to the state
rights objections. ole guard repuoli-
cans. or many OF them, stand on the
same ground they have always stood
and oppose regulation.
The opposition from the two sources
has always proven sufficient to block
any action s,iia :; Is a;aiitta iii;.se!yy 70 do
i again. unless the president should
make control of stocks and bonds
part Of his program
Another phase OF the opposition Is
that some radical elements in congress
fear that any stock and bond regula-
zion bin which is passed will be simply
an act TO legalize outstanding railroad
securities, without squeezing any wa
ter out of them. This opposition has
not been decisive of the results in
congress but it can not DE overlooked.
Middle West Hit.
In the case of the Rock Island. the
footing of the railroad has fallen as
severe visitation to the holders OF
securities and to the people OF the
rich region of the middle west thru
which the system runs. 1t is TO be
expected there will be demand from
both sources for such legislation as win
prevent repetition Of operations OF this
kind.
A prominent official Of the interstate
commerce commission who believes in
regulation thru an incorporation law
said:
at is strange that all this sort OF
thing has gone on all these years when
there is at hand a perfectly effective
and simple remedy. That remedy is
a national Incorporation law. which
would put carriers under the scrutiny
of the government Just as national
banks are under its scrutiny. We
should hear no more of such scandals
as the Rock Island and New Haven af-
fairs if such law were passed"