The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-04-22
Mr.. Crumpacker Offers the First
Amendment and the Committee
Unanimously Accepts 1t.
NO BALLOON" ENTERPRISES
SAFEGUARDS PROVIDED FOR THE
GRANTING OF ALL CHARTERS.
Departure of Governor Allen for POr-
to Rico on the United States
Steamer Dolphin.

WASHINGTON. April 21.-The House
committee on insular affairs voted to-day
to amend the Foraker resolution on Porto
Rico so as to make franchises and conces-
sions imperative until approved by the
President; also, placing rigorous restric-
tions on charters to private corporations.
The text of the amendments, as adopted,
is as follows:
Sec. 3 That all franchises, privileges
or concessions mentioned in Section 81 of
said act shall be approved by the President
OF the United States, and no such fran
chise, privilege or concession shall be op-
erative until 1t shall have been so ap-
proved.
Sec. 3. That all charters of private cor
porations shall provide that the same shall
be subject to amendment, alteration re-
peal; shall forbid the issue of stock or
bonds, except in exchange for actual cash
or property at 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 publc-service corporations. shall provide
for 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 corporation shall be
authorized to conduct the business of buy
ing and selling real estate, of issuing cur
rency, or of engaging in agriculture or be
permitted to hold or own real estate, ex-
cept such as may be reasonably necessary
TO enable 1T to carry out the purposes for
which 1t is created. Banking corporations,
however, may be authorized to loan funds
on real-estate security and to purchase real
estate when necessary for the collection of
loans, but they shall dispose of all real es-
tate so obtained within five years after re-
ceiving the title. Corporations other than
those organized in Porto Rico and doing
business therein shall be bound by the pro-
visions of this section so far as they are
applicable.
The meeting to-day was a special one,
and attracted unusual interest because Of
Chairman Cooper's purpose to urge the
franchise restrictions. Thirteen members
attended, namely: Cooper, Cannon. Hit,
Payne, Hepburn, Loud, Tawney. Moody,
Crumpacker, Jones Of Virginia, Maddox,
Williams of Mississippi and Carmack.
The original resolution coming over from
the Senate simply carried out the recent
recommendation of the President extend
ing the terms of officers now serving in
Porto Rico until their successors are ap-
| pointed. There was no division on that
the main question being as to whether this
resolution should carry the franchise re-
striction-
The first amendment offered by Repre-
| sentative Crumpacker. of Indiana. was
| authority for presidential approval of fran
chises these would have to remain inopera-
| tive until next December for congressional
| approval, according to the Porto Rico ter
ritorial law recently enacted.
The Cooper amendment-Section 3-was
| then discussed with considerable anima-
| tion. The vote was to In It's favor.
Messrs. Cooper. Hepburn, Moody and Taw-
| ney. Republicans, and the four Democratic
members voted in the affirmative. Five
Republicans voted in the negative.
After the meeting Mr.. Cooper said: "The
| restriction on corporations is designed to
| raise a safeguard before it is too late. In
stead Of waiting for fictitious capitalza-
| ton 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
/ favor of it, but that simply as a matter
| of expedience it was deemed inadvisable
| to cucumber the resolution carrying out
| the Presidents recommendation with
amendments relating to franchises. 1t was
| stated in this connection that the original
| ate and might not pass before May 1, the
| date on which ii was essential the act
| shall become operative. But Mr.. Cooper
replied that If this occurred the response
bility would be placed on the Senate