Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-07-15
permitted to continue 1t must mean
suppression of competition.
Recommendations Are General.


Recommendations Are General.
/ The recommendation of the COM
mission, which are rather general than
specific in their terms and applica-
ton, are as follows:
The function of a railroad corpora
ton should be confined to the fur
nishing of transportation.
Railroads should not be permitted
to invest generally in the stocks,
bonds and securities of other railway
and steamship companies except con-
Meeting lines, for the purpose of form
ing thru routes of transportation, IN
GLIDING branches and feeders. 1t is
in the interest of the public to facil-
itate the consolidation of connecting
lines. The credit of a railway COM
and prosperity of the country thru
which it runs.
It's surplus funds and credits should
be used for the hetterment of its lines
and in extensions and branches to de-
velop the country contiguous TO 10.
The testimony taken upon this yearins
shows that about $4,000 square miles
of territory in the state OF oregon
surrounded by the lines of the Oregon
Short Line Railroad Company. the
Oregon Railroad & Navigation COM
pany and the Southern Pacific Com
pany is not developed, while the funds
of these companies which could De
used for that purpose are pel1ls NJ
vested in stocks like the New YORK
Central and other lines having only a.
remote relation to the territory Ill
which the Union Pacific system is To-
Gated.
Railway securities should be safe
and conservative investments for the
people. to this end the risks OF the
railroad should be reduced to MN
imuan. Every one knows that railway
securities fuctuate more or less. ac-
cording to the prosperity OF the 'ifnes,
and also by reason of the VIDE spreau
,specula ton in such securities. -
therefore adds an element OF hazard 10
a railroads capital and credit to nave
its funds invested in the stocks OF QUA
pr companies. thereby endangering It's
solyency and its ability to pay reason
able dividends upon its own capltal
stock.
1t is a serious menace to the fnan-
cial condition of the country to nave
large railway systems fail to meet
their obligations or go into the nanas
of receivers, and the object OF legis-
lation and administration should De 10
lessen the risks of railway invest
ments.
Contrary to Public Policy.
1t is contrary to public policy as well
as unlawful for railways to acquire
control Of parallel and competing lines.
This policy Is expressed in the feoerai
laws and in the constitutions ana laws
of nearly every state in the union. we
have examined the constitutions ana
laws of all the states and find In ABOUT
forty of them prohibitions against
consolidation Of capital stock or fran
chises of competing railways. or the
purchase and requirement by rail-
way of competing lines, Competition
between railways as we'll as between
other industries is the established
policy Of the nation. And while the
acquisition of small minority stock
OF a competing line might not decrease
the competition. yet the acquisition OF
any considerable amount of stock,
with representation on the board of
directors of such railways. unques-
tionably has the effect of diminishing
competition and lessening to that ex-
tent its effectiveness. So long as 1t is
the policy of the general government
and of the states to maintain CONF petit
ton between naturally competing lines
the ownership of any stock by one
railway in a competing railway should
not. be permitted, and such lines of
railway should be prohibited from
having any common directors or Off
GERS.