The Washington times., 1907-08-20

profitable debt upon a railway as 20
make bankruptcy and a receiVefsIhp
probable IN the first business strlnsehcy.
This result In an interstate ralWay
necessarily interferes with and burdens
interstate commerce, and Justliies the
exercise Of the regulative poWe-. OF Con-
Sress to stop the practice. a railroad
Company engaged in interstate com
merce Should not be permitted, there
fore, to issue stock or bonds ana put
them on sale in the market except after
n certificate by the Interstate Commerce
Commission that the securities are Is
sued with the APPROVAL of the commits
sion for a legitimate railroad purpose
The railroads that are h0Heztly con-
Quoted would accept the certinc2te OF
the commission as valuable one n
the markets OF the world, and only rail-
way stock manipulators who look to tie
floating OF watered securities as their
best source OF profit would have reason
to complain.
Stock in Competing Lines.
"a muck used means of eliminating
competition among interstate lines serv-
ing the same territory is the acquisi-
ton by one company Of the stock In
another and the election Of directors to
represent that stock This process Is
facilitated by the uncontrolled power to
issue securities beyond the needs OF the
company for It's legitimate business and
would be curbed by the restriction pro
posed. The evil ought further 10 be
directly restrained by making II unlaW-
full for an interstate railway 10 acquire
simpler remedy Of meeting the evil
than by recourse 20 the antitrust law
under the Northern Securities case. In
addition to this, competing lines should
be prohibited from having common di-
reCtOrs or officers.
Proposed Amendments Constitutional.
These suggestions Of additional legis-
lation in respect to the supervision and
control OF interstate railways have been
made BY the Interstate Commerce Com
mission and I heartily concur in them.
They are plainly within the Federal
Jurisdiction under the interstate COM
merce clause. DO not think that IN
order TO accomplish a good which the
Federal Government with its greater
resources and wider geographical reach
can bring about more quickly and emil
GENTLY, the constitutional limits upon
Federal action should be blurred out or
an undoubted Federal power should be
EXPANDED by doubtful construction into
a field which really belongs 10 the
State. But the right of Congress 70
take any action, not conhscatory, IN
the most rigid control OF interstate con-
Hartman Consultations.
EThe measures taken and pro-
posed are radical, perhaps, viewed
from the standpoint of the IRisseZ
faire dOctrinGire, whose ideas have
been allowed TO prevail in respect
of railroad management down TO the
present; but no one can read the
report OF the commission on the his
tory Of the union of the Southern
Pacific and Union Pacific systems
with the Illinois Central system
without trembling at the enormous
power that one man, by the UDc)n-
trOIled use Of the stock and bond
issuing mower Of interstate rail-
ways under State charters, has ac-
quired in respect of a vital part Of
tEe cOuntry's business and without
looking for some means of remedy
ing such q dangerous tendency
which, If not stopped. viii lead to the
absorption of all the railroads of
the country into one hand"
Government Ownership.
After speaking of the abuses among
the roads. Mr.. Taft said OF Government
ownership;
IT am opposed 10 Government owner
ship
First, because existing Government
railways are not managed with either
the efficiency or economy of privately
managed roads and the rates charged
are not as low and therefore not as
beneficial to the public;
second, because II would involve an
ex 5enditure Of certainly twelve billions
OF dollars to acquire the interstate rail-