The Washington times., 1907-01-14
Representative From
Iowa Introduces Bill
in Congress.
Penalty for Violation of
Provisions Of Law
Drastic.
Subject May Arouse
Much Discussion in
Next Congress.

A bill proposing a highly important
amendment 10 the interstate commerce
act. intended 10 require the incorpOra-
tiOn under Federal authority OF all person
or persons engaging in interstate com
merce as common carriers. has been in
PRODUCED in the House by Judge b. p.
Birdsan, representative from the Third
Iowa district. an able lawyer. and one
OF the leading members OF the House
Judiciary Committee.
The bill is in no way in conflict with
the rate law of last winter and Of pres
ent interstate commerce legislation II
Is entirely unlikely il will be passed
this session. but it is expected 10 arouse
discussion OF the subject. and to pave
the way for an earnest effort AT legis-
lation in the sixtieth Congress. The
bill will 90 TO the Interstate Commerce
Committee Of the House. and Repre-
sentative Birdsall Will probably be heard
on il before the present session closes.
President With Him.
Judge Birdsall has been studying the
question OF Federal licensing and Fed
eral incorporation of railroads and other
common carriers in interstate commerce
for two years OF more. He takes the
view there is no question of the con-
stitutiOnal power Of Congress 10 require
such licensing and Incorporation. Presi-
dent Roosevelt has repeatedly taken a
stand In favor OF the Federal regulation
and licensing OF corporations in inter
state commerce.
Judge Birdsall. in his bill. does not at
tempt 10 deal with the matter OF Fed
eral regulation Of interstate commerce
business in general, but solely with
common carriers. lie takes the view
that IL is doubtful whether Congress
can adequately reach, Tor instance.
manufacturing concern that is making
goods in some State and shipping these
goods out TO other States. The reguia-
ton of common carriers, however that
are not strictly interstate, is another
matter. and not difficult so far as con-
stitutiOnal questions are concerned.
Advantages of Plan.
The advantages which the author OF
the bill believes will be derived from
the Federal licensing and Incorporation
of common carriers are various. One
OF them would be complete publicity
and the absolute prevention OF watering
OF stock. An important advantage would
be that the Government would have In
its hands accurate information as to
the valuation OF the RAILROADS. Senator
La Toilette is seeking TO get a valuation
OF the roads made by the Interstate
Commerce Commission. While not oP-
posing this, Judge BirdsaH thinks his
plan OF arriving at a valuation has some
advantages
The bill provides that on and after
July ], 1908 all persons engaged as
common carriers or desiring 10 engage
as such in interstate commerce. shall
obtain license 10 do business from the
Secretary of Commerce ana Labor. In
order 10 obtain such license there must
frst be Incorporation, either Of a cor
pOratiOn OF a single person or more
than one.
The bill makes provision for annual
detailed reports of such corporations TO
the Secretary OF Commerce and Labor.
Full information in relation to rates or
regulations concerning fares or freights
is also required.
Strong Feature of Bill.
Probably the strongest feature OF
the bill. however, is the provision that
whenever any carrier wilfully violates
any OF the provisions OF the act. or any
regulation imposed by Congress, then on
complaint to him. the Secretary OF Com
merce and Labor shall refer such COM
plant 10 the Attorney General, who Is
required 20 begin proceedings in the Cir
cult Court for the amendment af the
franchise of the corporation and its
license TO transact business. II il is
lated. then the court is required 10 for
felt the charter and license and re-
strain the carrier from further engaging
fl business under its franchise.