Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-04
Object of Senator NeWlands'
Resolution.
PROPOSED COMMISSION
DESIGNED TO FRAME A NATIONAL
INCORPORATION ACT.
National Board to Supervise Corpora
duced by Senator Hepburn.

Bills were introduced in the SEN
ate today by Senators Newlands
and Hepburn proposing supervision
and regulation of railroads and
other corporations.
Sentaor Newlands today introduced in the
Senate a joint resolution providing for ~
commission with instructions to frame and
report to Congress a national Incorporation
act for the construction and consolidation of
railroads employed In interstate commerce.
The action proposed by the resolution, the
senator says, has nothing to do whatever
with the recent suggestion of Commissioner
Garfield, which, he said. simply covered the
question of licenses to manufacturing cor
porations engaged in interstate commerce.
Its purpose. he said. is to unity and SIM
plify the railroad systems of the country, to
place such systems under national control,
to make the taxes. fixed and certain, and to
make dividends certain. so that hereafter
any increase of business may tend mathe-
matically either to a betterment of the
roads or an increase in wages a diminu-
ton In rates.
concrete form certain lines of suggestions
made by him in the examination of E. p.
Bacon, chairman of the executive commit
tee of the interstate commerce law conven-
ton. before the interstate commerce COM
mittee of the Senate and were drawn pur-
suant to the suggestion of members of that
committee that they should be presented in
some form to the Senate for discussion.
The Proposed Commission.
The commission is to consist of fourteen
members. one experienced in railroad trail
fic management, to be appointed by the
President; an attorney-at-law to be
appointed by the Attorney General: two
experts in transportation, one to be ap-
pointed by the Secretary of Commerce and
Labor, and the other by the Interstate COM
merce commission; five Senators and five
members of the House. Among the provi-
sions of the national Incorporation act to
be framed by the commission are:
For the construction of interstate rail-
roads and the consolidation of railroads en-
gagged in interstate commerce and purchase
of connecting interesting lines; the
amount of bonds and stock to be issued for
construction, consolidation betterment and
purchase to be approved by the interstate
commerce commission, and not to exceed
the actual cost of construction or the ac-
tual Talue of the railroads consolidated or
purchased
For the classification by the railroads of
all freight into general and special classes
and the fixing of a reasonable rate for each
railroad for each class of freight, and OF
the rates of fare for passengers, and for
the revision by the interstate commerce
commission of such classifications and
rates.
For the reasonable and just exercise of
such power in classifying 'and regulating
freights and fares by providing that such
power shall be exercised in a way to Weld
each railroad corporation not less than
per cent per annum upon the value of its
road property, to be ascertained by such
commission.
For summary proceedings in the courts on
the complaint of railroads or private par
ties concerning any decision of the inter-
state commerce commission.
Tax on Gross Receipts.
For the imposition of a percentage tax
on the gross receipts of all such corpora
lions in lieu of taxes on property and
stocks and bonds. and in lieu of all taxes
on the bonds and stocks in the hands of
stockholders, the property of such railroads
and bonds and stock to be entirely exempt
from state and local taxation.
For just plan OF distributing such taxes
by the federal government among the
states in which the roads operate, the per-
centage to be adjusted so to yield in the
aggregate amount equal to the taxes
now paid by the roads, and to be increased
gradually through a period of ten years.
until 1t reaches an aggregate of per cent
on the gross receipts of such corporations.
The act also shall provide for the correc-
ton of existing abuses and for the proven
ton OF rebates, preferences and diScrimina-
lions.
There Is also a provision for the creation
of a pension fund in the United States
treasury for employees disqualified by injury
age for active service, by the setting
aside of a percentage of the gross receipts
and for arbitration of disputes between the
railroads and employees.
Proposed National Board.
A national board to exercise supervision
and control over corporations is provided
for in a bill introduced in the Senate to-
day by Senator Reyburn. 1t is proposed
that Congress create a new department of
the government to exist In connection with
the Department of Commerce and Labor,
to be known as the national board of cor
porations." This board shall consist of
five persons, four to be nominated by the
President. for terms of four years each, at
salaries of 5000 annually and the fifth
member shall be the secretary of the De-
partment Of Commerce and Labor.
Authority far greater than that enjoyed
by the department now intrusted with the
regulation of so-called trusts and monopo-
lies will be given to the national board of
corporations If Senator Heyburn's bill be-
comes a law. The bill provides that the
board shall have the power to compel the
production of all books or documents or
the attendance of witnesses necessary to
the investigation of any question affecting
the right of a corporation to engage in bus
mess under provision of this act.
Antitrust Provisions.
Under the provisions of the bill no corpo-
ration would be permitted to engage in
business in any state other than that in