anaheim-gazette 1907-06-06

FEDERAL CONTROL OF ROADS Points from President’s Indianapolis Address--Let Railroads Keep out of Politics Before an audience of 30,000 sons and daughters of Indiana, President Roosevelt delivered a memorable address Memorial Day at the unveiling of the statue of Gen. Lawton, who lost his life in the Philippines. Speaking of the regulation of the railroads by the federal government, the president said: There must be vested in the federal government a full power of supervision and control over the railways doing interstate business; a power in many respects analogous to and as complete as that the government exercises over the national banks. It must possess the power to exercise supervision over the future issuance of stocks and bonds either through a national incorporation (which I should prefer) or in some similar fashion, such supervision to include the frank publicity of everything which would-be investors and the public at large have a right to know. The federal government will thus be able to prevent all overcapitalization in the future; to prevent any man hereafter from plundering others by loading railway properties with obligations and pocketing the money instead of spending it in improvements and in legitimate corporate purposes; and any man acting in such fashion should be held to a criminal accountability. It should be declared contrary to public policy henceforth to allow railroads to devote their capital to anything but the transportation business, certainly not to the hazards of speculation. For the very reason that we de- in the new policy, in its trying out and in its progress ment, is in no sense punitive. We would be the first against any form of confiscation, and whether we pass not, I may add that the super could be trusted in any event that there should be nothing der the guise of regulating destroy property without juxtaposition or without due process. As a matter of course, welish any criminal whom we under the law, but we have tion of confounding the innate and the guilty few by any and sweeping scheme of Our aim is primarily to preabuses in the future. Wherever evil doers can shall be brought to justice criminal, high, or low, who reach will receive immunity rights of innocent investors be jeopardized by legislation action; we sanction no which would fall heavily on stead of on the original wrong beneficiaries of the wrong. There must be no such rig will prevent the development country, and such develop only be bad if investors are ample reward for the risk. We would be the first to unreasonable restrictions be upon the issuance of stocks for such would simply h growth of the United States road must ultimately star credit. But this does not prevent manding that there be long government power to exercise care against the inflation or and all the evils that come in The man who builds a grand and those who invest in it great public service for ing railway properties with obligations and pocketing the money instead of spending it in improvements and in legitimate corporate purposes; and any man acting in such fashion should be held to a criminal accountability. It should be declared contrary to public policy henceforth to allow railroads to devote their capital to anything but the transportation business, certainly not to the hazards of speculation. For the very reason that we desire to favor the honest railroad manager, we should seek to discourage the activities of the man whose only concern with railroads is to manipulate their stocks. The business of railroad organization and management should be kept entirely distinct from investment or brokerage business, especially of the speculative type, and the credit and property of the corporation should be devoted to the extension and betterment of its railroads, and to the development of the country naturally tributary to the lines. These principles are fundamental. Railroads should not be prohibited from acquiring connecting lines by acquiring stocks, bonds or other securities of such lines, but it is already well settled as contrary to public policy to allow railroads to acquire control over parallel and competing lines of transportation. Subject to first giving to the government the power of supervision and control which I have advocated above, the law should be amended so that railroads may be permitted and encouraged to make traffic agreements when these are in the interest of the general public as well as of the railroad corporations making them. These agreements should of course be made public in the minutest detail, and should be subject to securing the previous assent of the interstate commerce commission. The movement to regulate railways by law has come to stay. The people of this country have made up their minds—and wisely made up their minds—to exercise a closer control over all kinds of public service corporations, including railways. Every honestly managed railway will gain and not lose by the policy. The men more anxious to manipulate stocks than to make the management of their roads efficient and honest are the only ones who have cause to oppose it. by law has come to stay. The people of this country have made up their minds—and wisely made up their minds—to exercise a closer control over all kinds of public service corporations, including railways. Every honestly managed railway will gain and not lose by the policy. The men more anxious to manipulate stocks than to make the management of their roads efficient and honest are the only ones who have cause to oppose it. We who believe in steady and healthy progress stand unalterably for the new era of widest publicity and of fair dealing on the part of railroads with stockholders, passengers and shippers. We ask the consent of no man in carrying out this policy, but we gladly welcome the aid of every man in perfecting the law in its details, and in securing its enactment and the faithful observance of its wise provisions. We seek nothing revolutionary. We ask for such laws as in their essence now obtain in the staid old commonwealth of Massachusetts; such laws as now obtain in England. The purpose of those of us who so resolutely believe That hacking cough continues Because your system is exhausted and your powers of resistance weakened. Take Scott's Emulsion. It builds up and strengthens your entire system. It contains Cod Liver Oil and Hypophosphites prepared that it is easy to take and easy to digest. ALL DRUGGISTS: 50c. AND $1.00 new policy, in its thorough cartivation and in its progressive devellisis in no sense punitive or vinished be the first to protest any form of confiscation of property, and whether we protested or may add that the supreme court trusted in any event to see we should be nothing done unguise of regulating roads to property without just compension without due process of law. matter of course, we shall puncriminal whom we can convict the law, but we have no intenconfounding the innocent many guilty few by any ill-judged keeping scheme of vengeance. this primarily to prevent these in the future. ever evil doers can be, they brought to justice, and no high, or low, whom we can will receive immunity. But the innocent investors should not deridized by legislation or execucion; we sanction no legislation should fall heavily on them, inon the original wrongdoers or series of the wrong. must be no such rigid laws as vent the development of the and such development can road if investors are offered an reward for the risk they take. Will be the first to oppose any enable restrictions being placed issuance of stocks and bonds, would simply hamper the of the United States, for a railust ultimately stand on its this does not prevent our dethat there be lodged in the cent power to exercise a jealous inst the inflation of securities the evils that come in its train. who builds a great railway use who invest in it render a public service, for adequate ities representing it, and that in the consensus of opinion of investors the total value of stocks and bonds is greater than their total face value, notwithstanding the "water" that has been injected in particular places. The huge value of terminals, the immense expenditures in recent years in double tracking, improving grades, roadbeds and structures, have brought the total investments to a point where the opinion that the real value is greater than the face value in probably true. While there have been many instances of gross and flagrant stock inflation, and while of course there remain cases of overcapitalization, yet when the statistics of the weaker roads—the overcapitalized roads—are combined with those of the stronger roads, and considered in the aggregate, in my judgment they will not be found to impair the wholesome financial standing and position of the railroads as a whole; and while those railway owners and managers who have enriched themselves by loading their properties with securities representing little or no real value deserve our strongest condemnation. Use of Fire-Killed Timber It is not generally known that trees killed by forest fires are used to any large extent, the popular opinion being that timber of this character is unfit for use. Dead timber is usually associated with unsound and decayed wood. For this reason it is hard for the average person to believe that it is capable of much use. In the west, however, there are many large tracts of fire-killed timber which, owing to dry climate and high elevations, are just as sound thirty years after as the day they were burned. One of the important uses made of this does not prevent our desire that there be lodged in the present power to exercise a jealous instinct the inflation of securities the evils that come in its train. who builds a great railway use who invest in it render a public service, for adequate station facilities are a vital neo to the country. We favor full and ample return to him, but we do not favor a policy limiting the many for the benefit of us. We favor the railway man operates his railway upon a forward and open business from the standpoint of perma-ment and who has an inter-ience future; we are against only who cares nothing for the day after his speculative deal in cities has been closed. We wish to make it to the interest investor to put his money into best development of the railroad therefore we wish to dis- tate against the man who, while himself, lays upon the future and patrons of the road and upon the honest men whose may become to operate the burden of additional debt with-ing correspondingly to its actual is said about the inability of presidents to agree among lives as to what policy should be used and what plans followed in order to work out the problems now present themselves. Far as the law is concerned, all them is a willingness to comply that timber of this character is unfit for use. Dead timber is usually associated with unsound and decayed wood. For this reason it is hard for the average person to believe that it is capable of much use. In the west, however, there are many large tracts of fire-killed timber which, owing to dry climate and high elevations, are just as sound thirty years after as the day they were burned. One of the important uses made of dead timber is for railroad ties. It has been found that the strength of the timber has not been impaired by the fire-killing while the durability has been often increased. Where these ties have been used along with green timber ties they have shown up remarkably well. In some cases they have lasted much longer than ties of green timber. Dead timber is used for this purpose in wholesale quantities in the Pikes Peak national forest, in Colorado, and in a more limited way in some other places. That ties made of this material are of known value is proven by the fact that the price is the same as for green timber ties. In quite a few places these ties have been made as long ago as fifteen years. Where the ties are known there is a strong demand for them. One tie contractor had a contract for 75,000 and could easily have doubled it had he been able to get out the ties. The government, through the forest service, is acting for the greatest economy by disposing of this dead tie material before it becomes useless, as every dead tie that is sold saves that much green timber to keep up the future tie supply. Assorted Literary Food For clearness read Macaulay. For logic read Burke and Bacon. For action read Homer and Scott. For conciseness read Bacon and Pope. For sublimity of conception read Milton. For vivacity read Stevenson and Kipling. For imagination read Shakespeare and Job. For common sense read Benjamin Franklin. For elegance read Virgil, Milton and Arnold. For smoothness read Addison and Hawthorne. For interest in common things read Jane Austen. For sim- TREE Orad Satis Apply to Tho Over 9,000 in State Institutions The State Board of Charities and Corrections of California has issued a tabulated statement showing the number of inmates in the various institutions of the State, including the hospitals for the insane and San Quentin and Folsom prisons. The total is 9705. San Quentin has 1560 inmates and Folsom 1025. The State Hospital at Stockton has 1756, the one at Napa 1625, at Agnews 741, Mendocino 722 and Southern California 973, making a total in all of the insane hospitals 5894. The reform school at Whittier has 291 inmates, and the school at Ione 216. The Industrial Home for the Adult Blind in Oakland has 113 inmates, and the Home for Feeble Minded at Eldredge 606. Secretary Taft is flying revision signal, and that it will prove the coming campaign trouble is that it is like of an issue within the state outside. The rank and tariff revision party is most as much of republican democrats, more so than take tariff revision to make tariff revision to not free trade. That a rule want it, but the republican party area From a purely political talk of revision is at this time. Many of them as they now stand and They have contributed building up the prosperous country, but the necessity has passed away. Stillers all over the country in favor of them, because For Outing Suits Fancy Vests Negligee Shirts Panama Hats, Wash Ties SEE Yungbluth & Kroeger 127 Center St. Phones Home 1044 Main 294 If you are thinking of taking a trip east this summer, now is your time. Extremely low rates. Come and see me. We are going to have a few excursions ourselves. We run our trains over many different routes and can give you your choice most any way you wish. East and Return About Half Rates June 6, 7, 8. July 3, 4, 5 Aug. 8, 9, 10, 19, 29. Sept. 11, 12, 13 Return limit 90 days, except that for tickets sold on June 6, 7, 8, limit will be October 15. Kansas City.....$60 00 St. Paul.....$70 00 Nineapolis.....$70 00 New Orleans.....$67 50 Joseph.....$60 00 Chicago.....$72 50 About Half Rates June 6, 7, 8. July 3, 4, 5 Aug. 8, 9, 10, 19, 29. Sept. 11, 12, 13 Return limit 90 days, except that for tickets sold on June 6, 7, 8, limit will be October 15. Kansas City.....$60 00 St. Paul.....$70 00 Nebrapolis.....$70 00 New Orleans.....$67 50 Joseph.....$60 00 Chicago.....$72 50 Memphis.....$67 50 Boston.....$109 50 Maha.....$60 00 New York City.....$108 50 Louis.....$67 50 Philadelphia.....$107 50 and many other eastern points Homestown Exposition $97.75 June 6, 7, 8; July 9, 10, 31 and later Charatoga, N. Y., Knight Tempfars, $90.90 July 1, 2, 3 Four Routes East All information as to stopovers, etc., may be obtained at City ticket office M. PICKERING, Agent, Southern Pacific, Anaheim, Cal. Southern Pacific Going to Move We are going to move our stock to the new store, cor. ater and Claudina street, where our building is now in verse of erection. We will commence now to sell all crockery and glassre at 10 per cent. Discount from Regular Prices A. NAGEL General Contractor for TREE PLANTING! Orange Trees a Specialty Satisfaction Guaranteed General Contractor for TREE PLANTING! Orange Trees a Specialty Satisfaction Guaranteed Apply to Thos. W. Dunn - Anaheim, Cal. Care of Herman Stern Tariff Revision Secretary Taft is flying the tariff signal, and the chances are it will prove the battle flag of coming campaign. The only oble is that it is likely to be more issue within the party than it inside. The rank and file of the revision party is made up alas much of republicans as it is democrats, more so in fact if you tariff revision to mean revision, not free trade. The people as we want it, but the leaders of the publican party are against it. In a purely political standpoint, walk of revision is perhaps bad at time. Many of the schedules they now stand are iniquitous. We have contributed largely to giving up the prosperity of the country, but the necessity for them passed away. Still manufactural over the country are keenly of them, because they en- able the manufacturer to maintain high prices, and if he has any surplus of which he has had little so far, he can sell abroad at reduced prices. Thus for the people at large, revision would be a blessing. But the enemies of revision say, and with a certain amount of truth, that the crest of the prosperity wave has been reached if it has not passed. The attacks on the railroads and other corporate interests has made capital timid, and if you prepare in earnest now for revision on the eve of the election, you will have the manufacturers laying off men and curtailing expenses. Importers naturally will hold off buying in the hope of cheaper prices; the railroads will be restricted in freight traffic, and you will invite hard times with a vengeance. It is a nice problem to solve. Perhaps a dose of hard times is necessary as a prelude to better times in the future.