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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (May 31, 1907)
TIIE f ORXIXG OREGOXIAX, FMDAT. MAT 31, 1907. NO MORE WATER TO GO Ifl STOCKS (Continued from First Pa.) fie of wealth, especially in its corporate orm. Today I wish to say word to you about the first and most Important feature of this task, the control of the common carriers toing an Interstate business; a control ab solutely vested In the Nation, while In so lr as the common carriers also transport the malls It la In my opinion probable that whether their business Is or is not Inter state it Is to the same extent subject to Federal control, under that clause of the Constitution granting: to the National Qov prnmont power to establish post roada and therefore by necessary implication power trt taka all action necessary in order to eep them at the highest point of efficieacy. Will Not Swerve rom Course. Every Federal law dealing with corpora tions or with railroads that has been put upon the statute books during the last six years has been a step In advance In the right direction. All action taken by the Ad ministration under these and the pre-existing laws has been just and proper. Every suit' undertaken during that period has been a suit not merely warranted, but required, bu the facts, a suit in the Interest of the people as a whole, and. In the. long run, pariluularly in the Interest of stockhold ers as well as In the Interest of business men of property generally. There can be no swerving from the course that has thus ln mapped out in the legislation actually enacted and in the messages In which I have asked for further legislation. We best Fervo the interest of the honest railway men when we announce that we will follow out precisely this course. It is the courte cif real, of ultimate conservatism. There wlM be no halt In the forward movement toward a full development of this policy; and those who wish us to take a step back ward or to stand still, if their wishes were realized, would find that they had invited an outbreak of the very radicalism they far. There must be progrensive legislative and administrative action for the correc tion of the evils which every sincere man must admit to nave existed In railroad man agement In the past. Control Issue of Stock. Furh additional legislation as that for Witch I have asked in the past, and espe cially that for which I asked In my message at the opening of the last session of Con frreps, la not merely In the interest of the public but most emphatically in the Interest of every honest railway manager and of all Investors or would-be investors in railway securities. There must be vested in the Federal Gov ernment a full power of supervision and con trol over the railways doing interstate busi ness; 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 incorpora tion (which I should prefer) or in some sim ilar fashion, such supervision to include the .frank publicity of everything which would be investors and the public at large have a TiKlit to know. The Federal Government will thus be able to prevent all overcapitalisation In the fu ture; to prevent any man hereafter from plundering others by loading railway proper ties with obligatiops and pocketing the money instead of spending It in Improve ments and in legitimate corporate purposes: and any man acting in such fashion should be' held to a criminal accountabillt'. 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 fixture to favor the honest railroad manager. we should seek to discourage the activities or the man whose only concern with rail voads Is to manipulate their stocks. Should Keep Out Speculators. The business of railroad organization and management should he kept entirely distinct from Investment or brokerage business, es pedaiiy of the speculative type, and the . ere nu ana property or tne corporation should he devoted to the extension and betterment xne country naturally tributary to the lines. These pVlnciples are fundamental. Rail roads should not be prohibited from acquir ing connecting lines, by acquiring stocks, bonds, or other securities of such lines; but It is already well settled as contrary to pub lic policy to allow railroads to acquire con trol over parallel and competing lines of transportation. Subject to first giving to the Government the power of supervision ana control which I have advocated above, the law should be amended so that rail roads 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 me interstate Commerce Commission. The movement to regulate railways by law try have made up their minds and wlselv .made up their minds to exercise a closer control over all kinds of public-service cor poratlons. Including railways. Every hon estly managed railway will gain and not lose by the policy. The men more anxious to manipulate stocks than to make the man agement of their roads efficient and honest .are the only ones who have cause to oppose Publicity and Fair Dealing. We who believe In steady and healthy progress stand unalterably for the new era of the widest publicity, and of fair dealing on ine part or raiiroaas with stockholders, passengers and shippers. We ask the con sent of no man In carrying out this policy; .but we gladly welcome the aid of every man in perfeoting the law In its details, and in necunng its enactment and the. faithful ob nervance 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 reso lutely believe in the new policy. In Its thor cuph carrying out and in Its progressive de velopment, is In no sense punitive or vindic tive. We would be the first to protest against any form of confiscation of prop erty, and whether we protested or not. I may add that the Supreme Court could bo trusted In any event to see that there should be nothing done under the cruise of reau lating roads to destroy property without Jusc compensation or without due process of law. As a matter of course, we shall punish any criminal whom we can convict under the Jaw; but we have no Intention of confound ing the Innocent many and the guilty few hy any ill-judged and sweepings scheme of vengeance. Our aim Is primarily to prevent inese aouses in tne future. iLet No Criminal Escape. Wherever evil doers can be. they shall be. brought to Justice; and no criminal, high or low, whom we can reach will receive Immu nity. But the rights of innocent Investors should not be jeopardised by legislation or executive action; we sanction no legislation which would fall heavily on them, Instead of on the original wrongdoers or benefi ciaries of the wrong. There must be no such rigid laws as will prevent the development of the country, and such' development can only be had if in vestors are offered an ample reward for the risk -they. take. We would be the first to oppose any unreasonable restrictions being placed . upon' the Issuance of stocks and. bonds, for such would simply hamper the growth of the United States; for a railroad must ultimately stand on Its credit. Guard Against Inflation. But this does not prevent our demanding that there be lodged in the Government power to exercise a jealous care against the Inflation of securities, and all the evils that come in Its train. The man- who builds a great railway and those who Invest in it render a great puhllc service; for adequate transportation facilities axe a vital necessity to the country. We favor full and ample return to such men; but we do not favor a policy of ex ploiting the many for the benefit of the few. VVe favor the railway men who operates his railway upon a straightforward and open business basis, from the standpoint of per manent Investment, and who has an Interest In its future; we are against only the man who cares nothing for the property after his speculative deal In Us securities has been closed. We favor the railway manager who keeps In close touch with' the people along his line rather than In close touch with the speculative market; who operates his line with a view to the advantage he can legiti mately get out of his railway 'as a perma nent Investment by giving a fair return to the stockholders and to the public good service with reasonable rates; who. does .not Derate Xda road .witii & view; xa Uxe lam.. POINTED The rifcrhtg of property are less in Jeopardy from the socialist and the anarchist than from the predatory ' man of wealth. , The power of the NatleJh must be exerted to stop crimes of cunning no less than crimes of violence. ' There can be no swerving from the course mapped out. We best serve the interests of the honest rail way men when we announce this. " ' - We should aeek to discourage the activities of the man whose only concern with railroads is to manipu late their stocks. The movement to regulate railways by law has come to stay. 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. . Wherever evil-doers can be, they shall be brought to justice; and no Criminal, high or low, whom we can reach will receive immunity. We favor the railway man who operates his railway upon a straightforward and open business basis; we fire against only the man who cares nothing for the property after his speculative deal in its securities has been closed. We wish to make It to the interest of the Investor to put his money into the honest development of the railroads. The great mass of our railroad securities rest upon safe and solid foundations. Capitalization must be determined in large measure by future need rather than past investment. Existing securities should be tested by the laws In existence at the time of their issue. But the public interest requires guaranty against improper multiplication of securities in the future. In providing against over-capitalization we shall harm no human being who is honest; and we shall bene fit many, for over-capitalization often means an inflation that invites business panic. We hope to secure as complete publicity in the affairs of railroads as now obtains with regard to National banks. Most certainly there will be no relaxation by the Government authorities in the effort to get at any great railroad-wrecker any man who by clever swindling devices robs Investors, oppresses wage-workers and does Injustice to the general public. 'I Those who complain should put the blame where it belongs upon the misdeeds which are done in darkness, and' "not upon the Investigations which brought them to light. , ' There wifr-not.be the slightest let-up in the effort to hunt down and punish every dishonest man. But the bulk of our business is honestly done. The surest way to invite reaction is to follow the lead of either demagogue or visionary in a sweeping assault upon property values and upon public confidence. The great need of the hour is the need of better transportation facilities,: for additional tracks, additional terminals, and improvements in the actual handling of the railroads. There are blackmailers in public life, and the citizen who is honest will war against the man who tries to blackmail arai!road or a big corporation with the same stern determination to punish him as against the man who corruptly favors such corporation. The man who is on occasion a corruptionist hunt such a man out of public life. 'Hunt him out as remorse lessly if he is a blackmailer as if he stands corruptly for special privilege. Let the man of great wealth remember that, while using and enjoying it, he must-nevertheless feel that he is in a sense a trustee. . porary speculative advantage which will fol low capitalizing an uncertain future and un loading the securities on the public Interest of Investor. . We wish to make it to the Interest of the investor to put his money into the honest development of the railroads, and therefore we wish to discriminate against the man who, while enriching himself, lays upon the future owners and patrons- of the road and above all upon the honest men whose duty It may become to operate the road, a bur den of additional debt without adding cor respondingly to Its actual worth. Much Is said about the Inability of rail way presidents to agree among themselves as to what policy should be advocated and what plans followed in the' effort to work out the problems which now present them selves. In so far as the law is concerned, all I ask of them is a willingness to comply fully with Its spirit, and a readiness to move along the lines indicated by those who are charged with administering It. Our pol icy la built upon experience, and our pri mary purpose 'Is to insure for the future against the mistakes and delinquencies of the past. Koads Not Over-Capitalized. There has been much wild talk as to the extent of the overcapitalization of our rail roads. The census reports on the commer cial value of the railroads of the country, together with the reports made to the In terstate Commerce Commission by the rail roads on their cost of construction, tend to show that as a whole the railroad property of the country is worth as much as the se curities representing it, and that in the con sensus of opinion of Investors the total value of stocks and bonds is greater than their to tal 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 track ing, Improving grades, roadbeds, and struc tures, have brought the total Investments to a point where the opinion that the real value is greater than the face value la prob ably true. No general statement such as this can be accepted as having more than a general value; there are many exceptions; but the evidence seems ample that the great mass of our rai iroaa securities rest upon safe ana solid foundations; If they fall in any degree to command complete public confidence, it is because Isolated Instances of unconsclon able stock-watering and kindred offenses arouse suspicion, which naturally extends to all other corporate securities so long as aim liar practices are possible and the tendency to resort to them la unrestrained by law. Cases of Gross Inflation. While there have been many Instances of gross and flagrant stock inflation, and while, of course, there remain cases of overcap italization, yet when tne statistics or. tne weaker roads, the overcapitalised 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 post tlon 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 con demnation, on the other hand our hearty commendation Is due those owners and man agers representing. I believe, the large ma jority who have year after year worked faithfully, patiently and honestly In build ing up our great system of railways, which have knitted together in close commercial and social .Intercourse widely removed sec- tions of the country and stand second only to the great business of agriculture Itself In contribution to national growth and devel opment. Valuation of Railroads. Ample provision should be made by Con gress to enable the Interstate Commerce Commission, by the employment of a suffi cient rorce or experts to undertake the physical valuation of each and any road In the country, whenever and so soon aa in the opinion of the Commission such a valuation of any road would be of value to the Com mission in its work. There are undoubtedly some roads as to which It would be an ad vantage, from the standpoint of the business of the Commission, to have such a physical valuation as soon aa possible. At the outset let It be understood that physical valuation Is no panacea; it is no sufficient measurement of a rate; but It will be ultimately needed as an essential instru ment In administrative supervision. It will be of use to the Commission lh con nection with the duty of determining the reasonableness of future capitalization, both as one element to enable such a body to come to a right conclusion in the matter, and also as an element to be placed before the investing public, to enable this public In Its turn to reach a conclusion; though of course capitalization must be determined in large measure by future need rather than past investment. Aid in Adjusting Rates. How Important physical valuation will prove as one of the factors to assist in fixing equitable rates I am not able to judge; bat that it will be of a certain Importance can be safely assumed because of the opinions of the Interstate Commerce Commission and of the courts, and because of the recent action, of the Northern Pacific Railroad in advanc ing such a physical valuation as decisive -oa its -side In a rate controversy. Such a valu ation would necessarily help to protect the railroads against the making of Inadequate and unjust rates, and would therefore be as Important from the standpoint of the pro tection of the railroads as from the stand point of the protection of the public; and of course It is necessary to the enduring pros perity and development of the country that the railroads shall yield reasonable profits to Investors. It is from one standpoint Quite as impor tant to know the original cost of the building or the road as to know -what it would now cost to reproduce It: from another standpoint the human equation that Is, the management of the road is more important by far than the physical valuation; and the physical val uation of the road In one region may have an entirely different relation to the real value of the road than In another reslon where the conditions are utterly different. .Therwfnre t h..nhvalai valuation, caa mvpr. i SAYINGS IN ROOSEVELTS be more than on of many elements to be considered; but it is one element, and at times may be a very Important element, when taken In connection with the earning power, franchises, original cost, character of management, location, and businets possibil ities, in reaching an estimate on the prop erty and rights of a corporation a a going concern. Let Present Securities Stand. The effect of such valuation and supervi sion Of securities can not be retroactive. Ex isting securities shoutd be tested by the laws In existence at the time of theft- issue. This Nation would no more injure securities which have become an Important part of the na tional wealth than it would consider a prop osition to repudiate the public debt. But the public Interest requires guaranty against Improper multiplication of securities In the future. Reasonable regulations for their Issuance should be provided, so as to secure as far as may be that the proceeds thereof shall be devoted to legitimate busi ness purposes. In providing against overcapitalisation we shall harm no human being who is honest; and we shall benefit many, for overcapital ization often means an inflation that Invites business panic; it always conceals the true relation of the profit earned to the capital invested, creating a burden of Interest pay ments which may redound to the loss alike of the wage-earner and the general public, which Is concerned In the rates paid by shippers; It damages the small Investor, dis courages thrift and puts a premium on gambling and business trickery. There 1 an essential difference between private and quasi-public property which jus tifies setting somewhere a limit beyond which the accumulating value in quasi-public properties, due to the necessity of a growing community, shall not be capitalized. Standard System of Accounts. One of the most important features of the Hepburn Act is its having given the Com mission absolute control over the accounts of railways. The Commission has Just is sued an order to the effect that on July 1 next all the railways of the country subject to the jurisdiction of the Commission must standardise their accounting methods, and the Commission is now organizing a bureau of special examiners, whose duty it will be. among other things, to see that the books of the carriers are kept In conformity with the rules laid down, by the Commission. Thus the means are already at hand and the machinery already created which, when perfected, will put the public in position to know the facts, so that the small Investor can exercise an Intelligent judgment when entrusting his money to the promoters of great railway enterprises. We hope as one of the chief means for betterment of condl tiona to secure as complete publicity In the affairs of railroads as now obtains with re gard to national banks. Control. Helps Railroads. There need be no fear on the part of in vestors that this movement for national su pervision and control over railways will be for their detriment. If they doubt this, let them stuay the history of the railway-control movement In such a state as Iowa. It would be hard to find anywhere a more prosperous or more Intelligent community; a commu nlty of thriving farmers and thriving towns people. . Iowa did Its share In the work of building railroads when the business was one that de manded men of the utmost daring and re sourcefulness; men like that gallant soldier and real captain of industry. Orenvllle M Todge; men who ran risks and performed feats for which It was difficult to make the reward too high; men who staked everything on the chances of a business which today happily Involves no such hazards.- Iowa was at length forced to undertake the work of regulating the railways within her borders. There was great outcry against It. It was proclaimed that such effort would ruin roads already built, ana prevent building more. But Iowa proceeded with the task, and It re sulted, not In ruin and stagnation, but in In creased safety and profit to the honest In vestor. Instead of - putting - roads Into the hands of receivers, it was followed by a pros perlty that rescued many of them from re ceiverships. Confidence In Railroad Stocks. No state, of course, can do for the railways what the rational Government has already done for the banks, and that Government should do something analogous for the rail ways. National-bank stocks are bought and sold largely on the certificate of character which the Government, aa a result of Its ex aminations and .supervision, gives to them. To give another illustration from Iowa's experience, when the, national banking law was amended to allow small banks to take out national charters, great numbers of the state banks of that stats were reorganized into national institutions. The investing Hubllc was ready to back with unlimited confidence . the Institutions on which tbr Federal Government had. set the seal of confidence and approval. The railways have not been given this cer tificate of character under the seal of the National Government, and therefore many people who invest freely in the shares of banks are reluctant to buy railroad securi ties. Give them the same guaranties as to railroad securities which we now give them aa io national bank shares, and we would presently see these1 people investing In rail roads, and thus opening a new reservoir from which to draw the capital now so much needed for the extension and betterment of the railroads. , All this, my friends. Is substantially what I have said over and over again. Surely, it ought viot to -be necessary to say that It in DO shape or way represents any hostility to corporations as such. On the contrary. It means a frank recognition of the fact that combinations of capital, like combinations of labor, are a natural result of modern con ditions and of our national development. As far as In my ability lies my endeavor Is and will be to prevent abuse of power by either and to prevent both so long as they do well. The aim of the National Govern ment Is quite as much to favor and protect honest corporations, honest business men of wealth, as to bring to justice those Individ uals and corporations representing dishonest methods. Most eerrainry there-will be no relaxation bg fe9 -jjoTarnjuent Authorities, la tb attort . SPEECH to get at any great railroad wrecker any man who by clever swindling devices robs investors, oppresses wage workers, and does injustice to the general public But any such move as this Is In the interest of honest railway operators, of honest corporations, and of those who, when they Invest their small savings In stocks and bonds, wish to be assured that these will represent money honestly expended for legitimate business purposes. To confer upon the National Government the power for which I ask would be a check upon overcapitalization and upon the clever gamblers, who benefit by overcapitalization. But it alone would mean an Increase in the value, an increase in the safety of the stocks and bonds of law-abiding, honestly managed railroads, and would render it far easier tt market their securities. I believe in proper publicity. There has been complaint of some of the Investigations recently carried on, but those who complain ehould put the blame where It belongs upon the misdeeds which are done In dark ness, and not upon the Investigations which brought them to light. Turns On the Light. The Administration Is responsible for turn ing on the light, but It is not responsible for what the light showed. I ask for full power to be given the Federal Government, because no single state can by legislation effectually cope with these- powerful corporations en gaged in Interstate commerce, and, while do ing them full Justice, exact from them in re turn full justice to others. The conditions of railroad activity, the conditions of our Immense Interstate commerce, are such as to make the central government alone com petent to exercise full supervision and con trol. The grave abuses in individual cases of railroad management in the past represent wrongs not merely to the general public, but, above all, wrongs to fair-dealing and honest corporations and men of wealth, because they excite a popular anger and distrust which from the very nature of the case tends to Include In the sweep of Its resentment good and bad alike. From the standpoint of the public I can not too earnestly say that as soon as the natural' and proper resentment aroused by these abuses becomes indiscriminate and un thinking. It also becomes not merely unwise and unfair, but calculated to defeat the very ends which those feeling it have in view. There has been plenty of dishonest work by corporations In the past. There will not be the slightest let-up In the effort to hunt down and punish every dishonest man. But the bulk of our business is honestly done. Don't Raid All Corporations. In the natural Indignation the people feel over the dishonesty. It Is all-essential that they should not lose their heads and get drawn into an Indiscriminate raid upon all corporations, all people of wealth, whether they ao well or ill. Out of any such wild movement good will not come, can not come, and never has cme. On the contrary, the surest way to Invite reaction is to follow the lead of either demagogue or visionary In a sweeping assault upon property values and upon public confidence, which would work Incalculable damage in the business world. and would produce such distrust of the agitators mat in tne revulsion the distrust would extend to honest men who, in sincere and sane fashion, are trying to remedy the evils. The great need of the hour, from the standpoint of the general public of the pro ducer, consumer, and shipper alike is the need for better transportation facilities, for additional tracks, additional terminals, and Improvements in the actual handling of Lh railroads; and all this with the least possible delay. Ample, safe, and rapid transportation facilities are even more necessary than cheap transportation. Better Facilities Needed. - The prime need is for the investment of money which will provide better terminal facilities, additional tracks, and a greater number of care and locomotives, while at the same time securing. If possible, better wages and shorter hours for the employes. There must be just and reasonable regu lation of rates, but any srbltrary and un thinking movement to cut them down may be equivalent to putting a complete stop to the effort to provide better transportation. There can be no question as to the desira bility of doing away with rebates or any method of favoring one shipper at the ex pense of a competitor, and direct dealing with the rates is sometimes the only method by which this favoritism can be avoided : but where favoritism Is not alleged, and when the question is nakedly one of getting a lower rate. It must be remembered that it Is often possible that those demanding it may be diametrically opposed In .Interest to those who demand abetter, safer, and more rapid transportation service, and higher wages and shorter hours for employes. If the demand for more taxes, for higher wages, for. shorter hours for employes, and for lower rates becomes so excessive as to prevent ample and speedy transportation, and to eat up the legitimate profits; if pop ular and legislative movements take a shape so Ill-directed as not only to threaten honest investments and honest enterprises, but also to prevent any effort for the betterment of transportation facilities. It then becomes out of the question to secure the necessary investment of capital in order to bring about an improved service. Guard All Interests Alike. : Rates should not be unduly high: there should be a thorough safeguarding against accidents; there should be no improper shirking of taxes: the shippers of the coun try must be supplied generously with cara and all other equipments necessary to prop erly care for our commerce, and all this means that the National Government must be given full and effective pfwer of super vision and control. But the Interests of those who build who manage, and who Invest In the railroads must be no -less scrupulously guarded than the interests of the public. It Is urgently necessary at the present time, In order to relieve the existing con gestion of business and to do away with the paralysis which threatens our expanding industries, because of limited and Inefficient means of distribution, -that our railway fa-" clUUea should ba 4 increased as xaeet the imperative demands of our Internal com merce. The want can be met only by private cap ital, and the vast expenditure necessary for such purpose will not be incurred unless pri vate capital Is afforded reasonable incentive and protection. It Is therefore a prime ne cessity to allow Investments In railway prop erties to earn a liberal return, a return suf ficiently liberal to covor all risks. Don't Impair Credit. We cannot get an improved service unless the carriers of the country can sell their securities; and therefore nothing should be done unwarrantedly to Impair their credit nor to decrease tha value of their outstand ing obligations. I emphatically believe thai positive re straint should be Imposed upon railway corporations, and that they should be re quired to meet positive obligations In the Interest of the general public I no less emphatically believe that in thus regu lating and controlling the affairs of the railways It Is necessary to recognise the need of an Immense outlay of money from private sources, and the certainty that this will not be met without the assurance of sufficient reward to induce the necessary investment. It Is plainly inadvisable for the Govern ment to undertake to direct the physical operation of the railways, save in wholly exceptional cases; and the supervision ana control it exercises should be both entirely adequate to secure . Its ends and yet no more harassing than Is necessary to aecur these ends. I believe that the railroad men of the United States are coming to a more perfect sense of the responsibility of the relation which they bear to the public and of the dignity of that relation. They are public servants in the highest and fullest sense. Indeed, there is not a brakeman nor a switchman upon the most remote road In the land who does not fill a public function and render a service of large public use fulness. We begrudge neither honor nor reward to these men to whom we entrust our Uvea and our property. Behind these active workers In the railroad field are those who have the determination of railroad policies. These men are entitled to great rewards; and In return public opinion is right In holding them to a rigid accountability for the way they perform their public duties Prosperity Out-grows Roads. For several months past some. If not all. of our roads have been in a condition of extreme congestion- Doubtless this Is main ly due to the fact that the country has outgrown Its railroads, that our prosperity has increased at such a rate that the most sanguine and optimistic railroads have been unable to keep pace with Us growth. But it is also true that ordinary methods ot operation, which hold good In a placid time of steady and regular movement, should at a time of crisis yield to the imperative necessities of nubile need. The experience of the past Winter proves h jw treat Is our dependence on the rati roads and how serious the responsibility of those who undertake to care for the public in the matter of transportation. I believe that there is sufficient ingenuity and execu tive genius In the operating officials of the roads greatly to diminish the troubles com nlaineri of. The most effective way to lessen demands for unreasonable legislation is for the rail roads acting individually and collectively to remedy as many as possible of the abuses and shortcomings for which there really ara remedies, and for which remedial laws are demanded by the shipping public. The admirable national legislation of re cent rears, in taking away from the rail roads the power of giving illegal favor, has taken away from them one of tne illegiti mate methods by which they used to pro tect themselves from improper attack; anu it Is therefore necessary that upright public servants should he as vigilant to protect them against harm as to prevent them from doing harm. Undoubtedly many high orti cers among the railroad men have followed the extremely unwise course of endeavor Ing to defeat the enactment of proper laws for their own control, and of endeavoring to thwart, obstruct and bring Into dl& credit the administration of the laws. But the folly of some of their- number In no way alters our duty, nor the wisdom of performing tms auty in a spirit 01. ao solute justice alike to the railroad, the shipper and the general public. Lobbyists and Blackmailers, Finally, friends, let us never forget that this is not merely a matter of business but also a matter of morals. The success of our whole system of government depends upon our d'scwimnatlng between men, not with reference to whether they are rich or poor, wnether tbey follow one occupation or another, but with reference solely to whether they act as honest and upright cltl sen should act. Let the local attorneys of the big roads Veep out of politics; and when they have to appear before the national or any state legislature let their names be put on a spe cial register, and let their business be above- board and open. There are "blackmailers In public life, and the citizen who is honest will war against the man who tries 10 blackmail a railroad or a big corporation with the same stern determination to punish him as against the man who corruptly la vors such corporation. But let the railroad man remember that to purchase Immunity In wrongdoing or to defeat blackmail by bribery Is the worst and most shortsighted of policies. Iet the plain people Insist on the one hand on gov ernlng themselves and on the other hand on doing exact justice to the railways. Let the big railroad man scrupulously re fraln from any effort to influence politics or government save as It is the duty of every good citizen In legitimate ways to try to influence pontics ana government; let the people as a whole. In their turn. remember that It Is their duty to discrim inate in the sharpest way between the rail way man who does well and the railway man who floes 111; ana, above all, to re member that the Irreparable moral harm done to the body politic by corruption la just as great, whether the corruption takes the form of blackmailing a big corporation or of corruptly doing its bidding. What we have to demand In ourselves and In our public servants is honesty honesty to all men; and If we condone dishonesty because we think it Is exercised In the In terefts of the people, we may rest assured that the man thus showing It lacks only the opportunity to exercise it against the Interests of the people. The man who on occasion will corruptly do what Is wrong In the Interests of a big corporation is tne very man eager to black mail that corporation as the opportunity arises. The man who is on occasion a cor rup'.onlst. Is apt, when the gust of popular feeling blows hard against the corporations he l as corruptly served, to be the loudest, nost reckless and most violent among those wno denounce tnm. Hunt such a man out of public life. Hunt him out as remorsely If he is a blackmailer ar it ne stands corruptly for special privi lege. Demand honesty absolute, unflinch ing honesty together with courage and common sense, In public servant and in business man alike. Hunt Down Evil, Encourage Good. Make it evident that you will not tol- erate In public life a man who discriminates for or against any other, save as justice and reason demand It; and that in your Biiiiuae lowira Dusmess men, toward the men who are dealing with the great nnan clal Interests of the countrv. while vou In- tend to secure a sharp reckoning for the wrongdoers, you also intend heartily to fa vor the men who in legitimate ways are doing good work In the business commun ity the railway president, the traffic man ager or other official,, high or low, who Is doing all in his power to handle his share In a vast and complicated business to the profit alike of the stockholder and tha gen eral public Let the man of great wealth remember that, while using and enjoying it, he must nevertneiess feel that he IS In sense a trustee, and that consistent misuse, whether in acquiring or spending his wealth, is ominous of evil to himself, to others who nave wealth and to the Nation aa a whole. As for the rest of us, let us guard our selves against envy as we -ask lhat others guard themselves against arrogance, and re member Lincoln's words of kindly wisdom: "Let not him who Is houseless xmli down the house of another, but let him work diligently and build one for himself, thus by example assuring that his own shall be safe from violence when built." Mr. Roosevelt appeared upon the lawn of the Fairbanks home this afternoon and wa pnotograpnea - with the Vice-President, Mr. Hemenway, r Mr. Hanly and Secretary I-ob. Several children from the neighborhood were cordially greeted by the President. Secretary of War Taft was represented at the ceremonies by . General ' Clarence R. Fid wards. Chief of -the Insular Bureau of the War Department, who was Gen eral Law ton 's Chief of Staff in the. Phil ippines. Monument to Law ton. The Lawton monument la the result of the wrttk" of the Lawton -Monument Com- mission, .formed, in 1900 soon after thej THE HOUSE OF When You Buy a Player Piano You Want the ONE that's Better Than the Rest. THE GENUINE PIANOLA The Pianola is today recognized as the standard of the world. Musically and mechanically it has reached a stage far in advance of any other instrument of the kind, and has also taken its place as the one and only player given the indorsement of the great musicians, artists and critics. In Summer home, country club or at the seaside, music good music is always apropos, always welcome. Such music as may be enjoyed through the aid of the Pianola will take precedent over any other means of entertainment. Now would be an excellent time to investigate the Pianola ques tion and there will be but one answer; you will be captivated de lighted. A Pianola in your home, at once, will mean the most enjoy able Summer you have ever known. These are the four perfect Player-Pianos; The Magnificent Weber Pianola The Steck Pianola The Wheelock Pianola The Stuyvesant Pianola Price Begin as Low as $500. THE HOUSE OF HIGHEST QUALITY dlapnr of pianoraliabilitr 353 WASHINGTON STREET, CORNER PARK Stores in Every Important City in the Pacific Northwest death of General Lawton, in the Philip pines. The Commercial Club and the Board of Trade co-operated in the for mation of the Commission, which raised $6000 by popular subscription. Daniel Chester French, of New Tork. had charge of the creation of the statue. The work was done partly by an American student, Andrew O'Connor. The monument stands in the Courthouse grounds, facing southwest. The bronze figure is nine feet high, surmounting; a stone pedestal six feet in height. The i figure is erect. In uniform and stands be side a cactus bush. Major-General Lawton was killed by a Filipino bullet on the firing line at San Mateo, near Manila. December ' 19. 1899. His widow and three daughters live In , The President's journey from Bellefon taine, O., where he first appeared in pub lic this morning, to Indianapolis, was a continual ovation. At all the places where the train stopped great crowds were gath ered and pressed around the President's car. At several places the President made brief remarks in keeping with the day, and at others he shook hands with as many as could gt near him. AGED MAN WEARY OF LIFE Tries o Commit Suicide After Visit ing Wife's Grave. TOPEKA. Kan.. May SO. J. M. Chase, aged 74 years, a wealthy resident of Wichita, Kan., who came to Topeka Wednesday night in order to place a Memorial day floral offering upon the grave of his wife, who is burled here, to day attempted suicide by cutting his throat with a dull pocket knife. He Is now at a local hospital in a critical con dition. - Mr. Chase is the father-in-law of S. H. Kilgore, of Wichita, commercial freight agent of the Missouri Pacific Railway, who is well known to shipping and rail way men all over the West. Charivari Equals a Cyclone. CHICAGO, May 30. A dispatch to the Tribune from Sioux City, Iowa, says: . One hour's din for each of the 12 children of a newly married pair, Mr. and Mrs. Henry Brown, was furnished by two hundred charivarists, who, after keep ing a section of the town awake all night, were dispersed by the police at daybreak yesterday. - The record-breaking charivari was given because the man bad seven children and his bride, a widow, five. As' a result of the 12 hours serenade, the house'of the bride's father is almost wrecked, Its porch torn off. windows smashed and screens torn down. The outbuildings were broken up to furnish clubs and tom tom beaters. Piles of cans, palls, scrap Iron, discs and clubs were left in tha yard, giving the appearance of a cyclone. Begin Condemnation Suit. VANCOUVER, Wash., May 2S. (Spe cial.) The first condemnation suit of the Oregon & Washignton Railway Company, the branch of the Harrlman system ouna ine through this city, en route to the Sound, was started in the Superior Court of Clark County today. The suit Is against James Carty and Anna Carty. his wife, and is brought to condemn lands located in seetlons 13, 18 and IS, located below this city. LANE RALLY TONIGHT. Burkhard's Hall, E. Burnside & GTand. Hear Devlin on "Campaign Fund." Armory, Saturday, 8 P. M. - L. M. Davis. 39 on ballot;- stands for honorable deals no Jobbery. 1 it HIGHEST QUALITY i Conrenient Terms When Desired BIGGEST. BUSIEST . AND BEST QF ALL TROUSERS $4 to $10 It's Great Music That is, it's great la its line in the tailoring line. It's a merry tune that you'll hear in the Co lumbia shops no harsh notes no discords. Everything har monizes. Each one of the largts Columbia staff of tailoring arti sans is an expert he plays his part with exceptional skill does his work in a manner that leaves no opportunity for criti cism. We'd like to play some of this music for you I Let us direct our splendid ag gregation of talent for your particular benefit let us make your next suit something a lit . tie out of the ordinary run a little more style a little better quality work than most other tailors turn out the best fit you ever had, and in the bar gain, let us save you some money. You'll come to Columbia tail oring sooner or laterbetter be gin NOW. It means permanent attire satisfaction. iu-jCS Grant Phegley, Manager, ELKS' BDG 7TH and STARK From the hawksbill turtle of the Car rlbean Sea comes the tortoise Shell ot commerce. , t ) I