The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-12-11
Commerce Commission
Chairman Would Regu-
late Capitalization.
DOLLIVER'S BILL
MAY BE RIGHT ONE
Senator's Measure Will Be Stud
ied-AdminiStration Views Also
Are Taft's Views.

Chairman Knapp. Of the Interstate
Commerce Commission. declares him
self decidedly Of opinion that the time
has come for the Government to take
uI the supervision Of the capitalization
Of great corporations.
Although he has not had opportunity
70 study the bill on the subject intro
duced by Senator Deliver. he under
Stands its general scope and purposes.
and believes that it represents the in
telllgent Inauguration of an effort to
secure a much-needed law.
Mr. Knapp discussed the subject ct
The White House. having called to
thank the President for nominating him
for another siS-year term on the Inter
state Commission.
THE best part OF it IS" he said. that
the appointment was not solicited by
me or anybody else. and I am under
obligations TO nobody whatever EXCEPT
the President
Mr. Knapps view about ne necessity
Tor early legislation to control the is
sue Of securities by railroads, is that
OF the entire membership Of the com
mission Investigations which that body
mas conducted in recent years, especial
" OF the Northern Securities, the Har-
imam system and the Alton recapitali-
zaion project, have left no doubt in the
minds Of the commissioners that e.
1scttve regulation Of railroad rates -
impossible unless the underlying oucs-
uon Of capitalization can be reached
and excessive issues stopped.
Will Be Handicapped.
50 long as the transportation inter
ests may issue as much Capitalization
as they choose, without reference to
values Of properties. and so long as the
courts assume that rates must pro
ouce reasonable returns Of capitaIfza-
tion' Just so long, It is insisted BY stu
dents OF the question. efforts at rate
regulation VIII be Handicapped.
a high officer in the Administration.
VINO IS close 10 both the President and
-Mr- raft said of the Dolliver bill:
me President for a long time has
oeen In favor Of such legislation. and
his position has in nowise chanpa5 ev-
cept that he has come more sfronSI,,
% INSIST upon Il as necessary The no
SlIOu OF Judge Taft is exactly the same
as or the President, and Just as strong.
II IS the view Of the ADMINISTRATOR
NAT the amendment OF the antI-t,IIgf
act eXempting railroads from certain
o us provisions. and the substitution
u eueCuFe regulation of traffic cOrnbf-
nations, closely relates to the oDinion
N favor OF such a measure as that OF
Senator Deliver"
Little Chance Now.
In Administration quarters It is be-
aeve6 that these two bills-for amend
ment - the antitrust law. and for con
troll Of capitaHzation-wiu have small
chance for consideration at the present
session But It IS at the same time an
ocipated that they viii be pressed with
vigor st the long session OF Congress.
Beginning a year hence They will
-Decesitats a great contest and an an
peal TO public opinion such as President
Roosevelt made IN order to force the
Hepburn bill through Congress. That
this appeal viii be made. and that IL
Will line up vast body Of progressive
public sentiment, is already regarded as
certain.
Members Of the Interstate Commission
are not saDguine Of early passage Of sucn
important legislation. They recognize
that the opposition TO II will be powerful
and that no effort will be spared to de-
Feat especially the capbalization-con-,
troll bill