Evening star., 1915-02-06
Secretary Bryan Says They
Do Not Practice Fullest Hon.
esty and Sincerity.
SPEAKS AT INDIANAPOLIS
TO TRANSPORTATION MEN
Den0mces "Watered Stock and
Says Carriers Should Have Sur
plus to Pay Dividends.

INDIANAPOLIS. IND. February e.
Charging that the railroads do not
t,eat the public with the fullest hon.
@stv and sincerity William J. Bryan
Secretary of State spoke on "The Rail-
roads Relation to the Business World
at the annual banquet of the Trans
portation Club here last night. He told
his audience, which was largely com
posed of railroad men. that all reform
railroad legislation has been brought
a bout against the wishes of the rail-
roads. He denounced 'watered stock.
aud declared that the railroads should
have enough surplus laid by" to pay
dividends.
Twenty years ago when he and other
men were fighting against rebates and
other evils. he said, they were denonnc-
ed as "demagoSues He had the sup
port of only two railroad presidents
when he ran for President. the Secre-
1ary said, yet he bore the railroads no
malice. This is the first chance I
have had TO speak as ] have wanted to
TO railroad men, nc said.
Don't be afraid of the people" was
Mr.. Bryan's advice to the railroads.
They are not your enemies: they are
your friends. Evils in this country
have not been eradicated until the
pldfn people OIL Ile country nave zone
ii. You railroad men were not the ones
10 correct the mistakes upon which
your systems were built.
Suggests Officials as Lobbyists.
If instead of sending lobbyists to
the state legislatures and to Congress
the railroads would send their presi-
dents and officials the country would
look with greater favor on them.
Every step that has been taken in the
way of railroad reform legislation has
been taken in the interest of bringing
the people and the railroads closer to-
gether. and not for the purpose of
Stacking the roads. And the rail-
roads themselves have come to realize
the justice in the reforms that have
been made in abolishing rebates and
passes.
These measures were condemned by
the railroads, and their author called a
ieTnagogue and an anarchist, but now the
railroads would not want to go back to
them
"'rhe men who have made their for
tunes out of railroads. he said, have
noo made then out OF salaries. but in
being dishoneS with their own companies
They have manipulated the stock market
for years. and have forced the small
Sto,fIholder to sell out his holdings under
financial strain
Fye deplored the fact that many Amer
icaI$ railroad presidents are much better
paid than the President Of the United
States
Opposes Stock Watering.
Mr. Bryan declared that one OF the
worst practices of railroads at the pres
eut time is the watering of Stock and
that this alone has worked more than all
else against increased wages Until the
government rises to its position in this
question and puts end to the practice
it cannot be hoped to prevent the fluctu-
alton of stocks, and especially railroad
securities
The Secretary said that he is in favor
of permitting railroads to have sur
plus like banks have. "as soon as they
show a disposition to act honestly in
al. matters and to enact a law where
by railroads could pay dividends and
still keep their stock at par
The Secretary insisted that the peo-
pie of this country would like to see
rafroad securities just as stable as gov
erpment bonds. but he declared the
people are not willing to risk their in
veStinentS in these securities. because
of. the lack of publicity given to the
business management of railroads.
With his address to the railroad men
last night Mr.. Bryan closed strenu-
ous two days of speechrnalking, in
which he made eight addresses in In
diapapolis. He left last night for
Washington
John Barrett. director general of the
Pan American Union, and Rev. John
CRtanaugh. president of Notre Dame
l University, also spoke at the dinner.