Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-04
COMMENT IS CAUSED
Presidents Position on Railway
Agreements Discussed.
HAS REVISED HIS VIEWS
Proposition When Offered by Senator
Foraker Opposed.
CONTROL OF CAPITALIZATION
Senator Cullom Believes Legislation
Necessary-Netional Incorporation
Suggested by H. H. Rogers.
CONTROL OF CAPITALIZATION

The statement OF the President IN M
speech at~Indianapolis on Decoration day.
to the effect that he favors allowing trat.lc
agreements by railroads under the super
vision of the interstate commission. IS ere
ating great deal Of comment among men
in public life who recall the amend rent TO
the interstate commerce law offered in the
Senate by Mr. Foraker shortly after tho
Northern Securities merger case came into
prominence.
That amendment proposed exactly the
same thing with the exception that The
making of such traffic agreements was to
be under the supervision of the federal
courts. At that time Senator Foraker was
in close relation with the President I'm the
estimation of the public because of the at
titude the Ohio senator was taking In fac
tional disputes in his state In which
the late Senator Hanna figured prominently.
The relation was regarded close IN
fact that Senator Foraker's action was pub
licly referred to representing the views
of the Pres dent.
Foraker's Proposition Disowned.
In order to dispel the idea that the Pres
ident favored tie proposition of Senator
Foraker, Senator Knox, then Attorney Gem
eral, gave out a semi-otfic.al statement to
the effect that Mr.. Foraker did not repre-
sent the views Of the President, and that
the President was not in favor OF such a
proposition.
AS soon as that statement was given cur
rency the friends OF Mr.. Roosevelt frowned
upon the plan bit of heresy that was
unworthy of their support and no substan-
tial progress was made in enacting IT.
The recommendation OF the President
made in his indianapolis speech. it is gen.
orally expected, VIII be reiterated in his
next message to Congress, and il will then
doubtless receive serious consideration by
both Mr. Foraker and his friends and those
who look kindly upon 1t as coming from the
admins tration.
The Proposed Traffic Agreements.
The recommendation of the President fol.
lowed his suggestion that legislation he en-
acted to present capitalization and is as
follows:
Subject to first giving to the govern
ment the power of supervision and control
which l have advocated above, the law
should be amended SO that railroads may
be permitted and encouraged to make traf-
fic agreements when these are in the in
terest of the general public well OF
the railroad operations making them
These agreements should, of course be
made public in the minutest detail. and
should be subject to securing the previous
assent of the interstate commerce COM
mission.
The Presidents suggestion about over
capitalize ton ard the conditions under
which railroads should be permitted to pur-
chase connecting lines with the approval
of the comm ss!on. and which are not d.
rectly in competition, was today approved
commerce act who declared that in his
Judgment legislation along those lines
should be enacted.
Mr.. Cullom believes, with the President,
that the federal government should be en-
abled to prevent Oyerca pitalzation in the
future, and his friends believe that he will
either propose an amendment to the inter-
state commerce act. give his support to
such a measure if introduced by some
other senator. Such an amendment to the
law would provide for supervision by the
commission over future issues of stocks
and bonds, either through a national in
corporation act or in some similar fashion.
National Incorporation Act.
The recommendation of the President
favoring national Incorporation act for
the railroads is also being referred to as in
line with the suggestion of Mr. Henry II.
Rogers when testifying in behalf of the
Standard Oh. Company before the indus
trial commission in this city about seven
years ago When Mr.. Rogers made that
suggestion it was received with doubt by q
good many people who were inclined to
place a large question mark at the end of
it in view of it's source. Mr.. Rogers when
on the stand, said he thought it would be
a good thing to have a national incorpora-
ton act to apply to all corporations doing
interstate business.
The suggestion had been made before,
but when such an unqualified Endorsement
came from Mr. Rogers some of the people
who had been inclined to favor it thought
it would be well to think it over again.
and when Congress met, for some reason,
no great prominence was given to the
proposition.