The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-10-04
Mr.. Hines spoke in part

securities. MI. Hines spoke III part
as follows:
The railroad companies and the
members of your association have d
common interest that railroad securI-
ties shall be sound and shall give con-
tinued satisfaction to their purchasers.
Hence, l wish to express my views as
to some of the changes which are
needed in our laws so as to promote
the raising of necessary railroad capt.
tai through the issue of securities
which will prove sound and satisfaC-
tory.
There is now an unusual oppor-
tunity To obtain important improve
ments in the laws which underlie the
SoundneSs of railroad securities SO L
am going to speak, not of mere alb
stractions, but of matters which have
become severely practical. The pub
lie is giving these things unusual at
tention and 1 believe congress will
soon fine it appropriate to take decl-
sive action upon them. Therefore
want to ask you to consider certain
subjects about which you can give
definite assistance. not at some time
in the remote future, but in the next
few weeks.
Public sentiment is unusually alive
to these matters because the difficult
ties of the railroad situation have been
accommodating to the point where the
country has begun to appreciate with
clearness that the public interest will
removed. The members of your as
ISOLATION are in an exceptionally good
position to perceive the remedies that
are necessary and to throw your in
| fluence and the influence of your Gus
| toners in favor of solutions which will
promote both public interest and your
| own.
Under the law as it seems to be con-
strued by the government, the cOun-
try has no voice whatever in prevent
/ o. rig Gfr
matter how widespread it may be Or
how arbitrary the leaders of railroad
labor may be. The result is that until
there shall be some general remedial
Legislation, the railroads are left in "a
position which is full of danger 20
prospective investors whose capital
ought in the public interest to be used
in the further development and inn
provement of the railroads. Since the
government is unable to get the rail-
road unions to do anything they do
not want to do. the whole pressure of
the government is eXerted to get the
unions insist upon. When executive
pressure fails. then congress seeks to
grant by hurried legislation what the
labor unions demand. If such iegis-
lation proves constitutional the rail-
roads must try TO shift the burden to
the public and to do this must get the
tapproval of the interstate commerce
commission and to some extent of
state railroad commissions.
Cannot Pay Dividends.
The continuance of such a condi-
ton is a menace to the soundness OF
present and future railroad securities.
because if railroad revenue is thus put
at the mercy of the railroad unions no
one can have confidence in the ability
of the railroad companies to continue
to earn sufficient net income to pay
interest, rentals ard dividends and to
provide the annual surplus necessary
to protect railroad credit.
Of course there will be and must be
consideration of this matter by con-
gress until some method can be found
for the settlement of these controver-
sizes in a legal and orderly way in ac-
cordance with the rights of all parties
concerned. But l wish particularly tc
emphasize that no such law can be
passed except over the opposition oil
the railroad brotherhoods; for they
have declared in the most unqualified
manner that they will oppose any Law
which seeks to provide for an officia
investigation of the merits of a dispute
before a strike can take place, an6
will oppose any other law thru which
the government would interfere in any
way with the unrestricted freedom O.
railroad labor to strike whenever il
sees fit When you consider the pas