The Washington herald., 1908-04-05

A bill designed 10 put into legal
form rules and regulations concerning
the acquisition OF railroad property. and
the issuance Of railroad securities. that
viii prevent in the future such manipu.
lation as was disclosed by the investi-
gdtion Of the Interstate Commerce Com
mission into the operation Of the
Hartman lines, was introduced in the
House yesterday by RepresentatiEs
Eseh, Of Wisconsin. -
Tile Esch bin ~ aimed at the over
capitalization OF railroad securities. II
also permits railroads TO acquire con
Meeting lines Mr. Esch. as member
Of the House Committee on Interstate
and Foreign Commerce, was one Of the
trainers
In part a; least the Esch bin is drafted
along lines mapped out in President
R0osevelt's recent message to Congress.
TO avoid in any way conflicting with
State statutes on the subject. Mr.. Eseh
had series of conferences with Martin
S. Decker. Il member Of the Second dis
trict public service commission. as the
result Of which section was added to
the bin obviating any possibility Of a
clash with the State lcas.
Limits Extra stock Issues.
The bin introduced by Mr.. Eseh pro
yides that no Interstate railroad shall,
after such road has been constructed and
in operation for one year, issue any ad-
ditional stocks, bonds. notes, or other
evidence Of Indebtedness. except when
necessary to the acquisition of property,
the extension or improvement Of It's lines
and facilities. and Improvement or main
tenance Of its service.
II is made unlawful for any common
carrier to issue scrip dividend or 10
pay any dividend except in cash. such
corporations may purchase the stock or
bonds Of a connecting line of railroad
when such line and the line of such cor
poration would constitute through route
OF transportation, and IL may issue its
stock or bonds TO provide funds for that
purpose. Except As indicated, IL shall
not be lawful for any common carrier %
acquire by purchase, exchange Of securi-
ties, or otherwise the stock, bonds, or
other form of capital OF any other rail
road corporation; nor shall any other
corporation or association OF persons ac-
qure and hold any portion Of the stock.
bonds or other forms of capital Of any
two or more railroads.
Must Report to Commission.
The bill requires interstate railroads to
file full specific reports to the Interstate
Commerce Commission Of each and every
issue Of stock. bonds. notes, or other evil
dence of Indebtedness. including ali issues
of notes for period not exceeding twelve
months and all acquisition of railroad
property. and OF acquired control or right
TO operate railroad property by contract,
lease, agreement, or otherwise.
Authority is given the commission TO
make investigation concerning the capi-
talization of any common carrier. the ac-
QUESTION of railroad property by any such
corporation 20 control or operate railroad
property.
Ii is specifically provided that nothing
in the bin Is 10 be construed TO deprive
any State Of any existing power or au-
thority TO regulate the issuance OF stocks,
bonds. notes or other form of indebted
ness by railroad corporations or other
corporations of which such States may
have jurisdiction. or 10 regulate or pro-
hibit the acquisition. control. OF opera
ton Of railroad property in such cor
porations.