Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1915-08-26
Federal Restrictions on Issues
of Stocks and Bonds ADVOCATED
BY Laurence Todd
BY Laurence Todd
The courers Special Washington Correspondents

Washington, d. c., Aug. 24.--Federal
restriction Of stock and bond issues of
all railroads, for all purposes, Is the
central point in the recommendations
! of the interstate commerce commits
sion and Of most of the other author
tiles who have probed the Rock Is
land railroad scandal. So emphatic Is
I the demand for legislation on this
, that the administration will at once
/ prepare regulation bill, for introduce
ton in congress In December.
So once more Is Senator Cummins
! justified in his position that the rail
roads of the United States cannot be
| trusted to protect the interests OF their
own stockholders--much less the IN.
+; terests of the public. 1t is shown that
| the Reid-Moore syndicate looted the
| road, and that the owners of the stock
/ and bonds Of the road will for years
suffer for their crime. 1t is shown that
the entire population Of the states
through which the Rock Island road
/ runs will have to pay an Indirect tax,
and get along with inferior service,
for years to come. Only in this way
can the easy millions" of the inner
circle of the Rock Island management
be made up.
During the past two years the demo
cratic administration has made
/ show of anxiety to place the restriction
| and regulation of the issuance of rail
way securities in the hands OF the
| interstate commerce commission. A
/! railway securities bill was passed by
the house. and was in fair way to be
adopted by the senate, when suddenly
! It was dropped The white house had
! lost it's nerve, apparently. The ex-
! cuse given for this failure to establish
! federal authority over security issues
f, of the railroads was that the inter
! state commerce commission was not
| ready to handle the Job. 1t was SAID
that a vast organization would be re-
ouired. and that time was necessary 10
perfect such an organization, II the
government were to avoid stopping the
development Of the railroads. 1t was
said that the commission would be un-
able to Judge of proper amount OF STOCK
to be issued for any given railroad ex-
tension, in time to permit the extern
sion to be carried out economically.
But the administration took no steps
to create the machinery for future reg
ulation of security issues. The looting
of the New Haven system, the robblng
of the Frisco" and the expose OF the
Rock Island case in Congress last
winter created strong sentiment IN
favor of action, yet the bill was
dropped at the command of the resi-
dent. Now comes the interstate com
merce commission with definite de
mand that security issues be put un
der scrutiny Of the government. Press
comment throughout the east mas up
held the view of the commission. Prop
ably the frenzied finance OF railroad
| ing is on it's last fling.
Just at this point there arises tn
forthcoming Commons report OF TN
| majority of the industrial Relation
! Commission, with a proposal. 1t II
stated on high authority that security
issues of industrial companies, as wei
as those of common carriers, De regu
lated by the public
| Here is revolutionary suggestion IN
deed. Mining corporations Woulo