520 TWENTY-THIRD ANNUAL YEAR BOOK— PART VII 



I wish this organization, which has led in the fight to repeal Section 15-a, 

 could see its way clear in the near future to lead in the fight to check 

 this other movement. It is now proposed that we shall repeal the entire 

 Cummins-Esch act. Have you ever paused to consider what that would 

 mean? 



For more than a generation you have heard of the colossal frauds 

 committed in high finance by the issuance of watered stock and manipu- 

 lation of security issues. You well know the stories of the Chicago and 

 Alton, and the New Haven, and the Erie, the Wabash, and others. Fin- 

 ally, after many years of constant struggle in public and private, you 

 have forced on the statute books the first provisions attempting to give 

 adequate authority to the federal government to prevent the issuance of 

 fictitious capitalization. The first time that law was written on the 

 federal statute books was in the Cummins-Esch act. Now are you going 

 to repeal a law which you have fought for during the past twenty years? 

 It seems to me that you would be playing into the hands of the other 

 fellow. 



If there is a man of that frame of mind in this room, that wants that 

 law repealed, giving to the federal government for he first time in the 

 history of railroading, control over the issuance of railroad securities, I 

 wish you would please hold up your hand. Not very unanimous. 



Second, an important part of this law relates to the interstate dis- 

 tribution of freight cars during a period of car shortage, and for the first 

 time in our history we secured in the Cummins-Esch act a law with teeth 

 in it providing governmental control over the interstate distribution of 

 cars during a period of car shortage. Of course, the commission can not 

 manufacture cars when you need them. They must first be secured in 

 another manner. But when cars are scarce, do you know how easy it 

 is for a railroad to favor certain cities or certain industries or firms with 

 great wealth and influence, how easy it is to favor the large institution 

 which can swing traffic from one railroad over to another — a power that 

 the small shipper can not exercise? 



Finally, you have written on the statute books for the first time a 

 law giving to the federal government the control over the intersate dis- 

 tribution of cars during a period of car shortage. I ask again, is there a 

 solitary man in this room that wants that repealed? Won't you please 

 stand up (No response.) Not very unanimous. 



You have heard the old story of jumping from the frying pan into 

 the fire. I think the folks advocating the repeal of the entire law are 

 trying to get you and me to perform that particular act. If Section 15-a 

 is repealed, there are many railroad men who will agree with you and 

 say, "Yes, let's repeal the whole law." As I said before, that is simply 

 playing into their hands. It would be a colossal blunder of the first mag- 

 nitude. I say this group of practical farmers from all over the state of 

 Iowa should take the intitiative in putting a quietus on that movement, 

 and this is the time to do it. Let your declarations be so strong and clear 

 and unequivocal and powerful that they shall be heard clear over there 

 at the national capital. 



Section 15-a must be repealed. The powers of the states must be re- 

 stored as they existed immediately prior to the war. Other amendments 



