Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-04-21
PORTO RlCAN FRANCHISES
ACTION OF THE HOUSE IysULAR Az
FAIRS COMMITTEE.
Difference of Opinion Regarding the
Expediency of the Mode
of Procedure.

The House committee on insular affairs
voted today to amend the Senate resolution
amending the Porto Rican act so to
make franchises and concessions inopera-
tive until approved by the President; also
placing rigorous restrictions on charters to
private corporations The text Of the
amendments as adopted is as follows:
Sec. q That all franchises, privileges or
concessions, mentioned in section 80 Of said
act shall be approved by the President of
the United States, and no such franchise
privilege or concession shall be operative
until 1t shall have been so approved
Sec, 3 That all charters of private cor
porations shall provide that the same shall
be subject to amendment alteration or re-
peal shall forbid the issue Of stock or
bonds, except in exchange for actual cash.
or property at a fair valuation, equal in
amount to the par value of the stocks or
bonds issued: shall forbid the declaring of
stock or bond dividends. and, in the case
of public service corporations, shall pro-
VIDE Tor the effective regulation of the
charges thereof, and for the purchase or
| taking by the public authorities of their
property at a fair valuation. No corpora
ton shall be authorized to conduct the
business of buying and selling real estate,
of issuing currency. or of engaging In agri-
culture. or permitted to hold or own real
estate. except such as may be reasonably
necessary to enable it to carry out the pur-
poses for which 1t Is created. Banking cor
porations. however, may be authorized to
loan funds upon real estate security and
10 purchase real estate when necessary
for the collection of loans, but they shall
dispose of all real estate so obtained. with
IN hve years after receiving the title. Cor
poratons other than those organized in
Porto Rico and doing business therein.
shall be bound by the provisions Of this
section so far as they are applicable"
Unusual Interest in the Meeting.
The meeting today was special one and
attracted unusual interest because of
Chairman Coopers purpose to urge the
franchise restrictions. Thirteen members
attended, siz: Cooper. Cannon, HIT Payne,
Hepburn, Loud, Tawney, Moody, Crum-
packer, Jones of Virginia, Maddox Will
lams of Mississippi and Carmack
me resolution coming over from the
Senate simply carried out the recent rec
ommendation of the President, extending
the terms of officers now serving in Porto
R1co until their successors are appointed
There was no division that, the main
question being as to whether this resolu-
ton should carry the franchise restrio-
lions.
The first amendment, offered by Repre-
sentative Crumpacker of Indiana, was
unanimously agreed to, for without this
authority for presidential approval of
franchises these would have to remain
inoperatlve until next December, for con-
gressional approval, according to the Porto
Rico territorial law recently enacted.
Discussed With Animation,
The Cooper amendment, section g. was
then discussed with considerable animation.
The vote was s to in it's favor. Messrs.
Cnoner Hepburn, Moody and Tawney, re-
publicans, and the four democratic members
voted in the affirmative. Five republicans
voted in the negative.
After the meeting Mr.. Cooper said: 1.-The
restriction on corporations is designed to
raise a safeguard before it is too late
Instead of waiting for fictitious capitaItza-
t1on and watered stock, we seek to avoid
the possibility of balloon enterprises and
TO place restrictions which the various
states have put in their laws"
1t was stated by those who voted against
the amendment that this indicated no op-
position to the amendment itself as the
| feeling was substantially unanimous in
| 1aVor OF it, but that simply as matter
| or eXpediency it was deemed inadvisa BILE
| 10 lncumber the resolution carrying out tho
Presidents recommendation with amend
| fnents relating to franchises. 1t was
stated in this connection that the original
| resolution would be jeopardized in the
| senate and might not pass before Nav l.
| the date on which it is essential the act
| snail become operative. But Mr. Cooper
| replied that If this occurred the RESPONSE
| plllty would be placed on the Senate.