Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-12-10
FOR INFORM RATES
Proposed Radical Changes to
Interstate Commerce Law.
SENATOR CUMMINS' BILL
Enlarges Powers of Commission in
Rate Complaints.
TO STOP STOCK WATERING
Heavy Penalties for Money Misex-
pended and Misuse of Re-
ceipts by Carriers.
TO STOP STOCK WATERING

Radical amendments to the Interstate
| commerce act are proposed in a bill in
| troduced in the Seuate today by Senator
Cummins Of Iowa.
| The main propositions of the bill are:
To authorize the interstate commerce
| commission to establish a freight classi-
fcation which shall be uniform all over
| the country.
To provide penalty of $500 on a car
rier which refuses to give a written
statement OF freight rate to shipper
or which wrongfully states rate.
To give the interstate commerce COM
! mission power to investigate rates. with
out complaint, and to order changes in
! rates it regards as unfair. after a hear
| ing.
| TO give the interstate commerce COM
! mission power to establish and order
through freight rates and to enforce regu-
lations regarding the transfer of freight
/ from car to boat or vice versa.
To prohibit court from setting aside
or suspending any rate fixed by the COM
mission until 1t Is shown that all the
rates of the carrier in interest will be in
sufficient by reason of the order of the
commission, to allow the carrier to earn
| fair compensation.
Approval Of Commission.
To prohibit carrier from putting a
change in rates into effect without the ap-
provai of the interstate commerce COM
mission A temporary enforcement of a
| change, however, is to be allowed by the
commission until 1t takes final action
To prohibit a carrier from owning or
controlling competing railway or boat
line. or own any Of Its stock. The inter-
state commerce commission, however, is
| to be given power to allow the consoli-
| dation of railroads If they are not COM
| peting lines.
| To prevent the watering of capital
stock of railroad. Officers. directors,
stockholders and representatives of a
railroad, through whose acts the receipts
| of the carrier are used other than in ac-
cordance with the proposed law, are
made liable for all money misexpended
punishable by fine of from 81 600 to
$1,000 and by Imprisonment for from one
to ten years.
To prohibit common carriers from own
ing any other business.
Stocks Paid in Cash.
Prescribing the stock and bond issues
of common carriers to be allowed by law,
and the ways in which the receipts Of
tial particulars. provides:
mo corporation or joint stock associa-
ton. being a common carrier as defined
in the act to which this Is an amendment.
shall. after the passage of this act issue
any share of capital stock or certificate
thereof nor any share of capital or evil
dence thereof, unless the par value Of the
same, or more, has first been paid in cash
into the treasury of the corporation or
joint stock association therefor. or unless
the par value of the same, or more. has
been paid to the corporation or joint stock
association by the transfer or conveyance
Of property to the corporation or joint
stock association which the corporation or
joint stock association can lawfully pur-
chase and hold and If it is sought to pay
for any capital stock or share of capital
in property, then the value of the property
to be so transferred and conveyed shall,
prior to the issuance of the certificate or
other evidence of shares. be determined
by the commission. upon the application
Of the corporation or joint stock associa-
tion In such form as the commission may
prescribe, and no property shall be re-
ceived in payment of capital stock or
share at greater value than so fixed by
the commission
Uses of Capital Stock
mo such corporation or joint stock
association shall issue any capital stock
or share or shares any certificate or
evidence thereof for or on account of the
increased value of any property already
owned by the corporation or joint stock
association, nor for or on account of
earnings, whether in hand or heretofore
betterment or enlargement of its railway
or other line OF transportation. The
money or property received by any Such
corporation or joint stock association
for Its capital stock or shares issued as
aforesaid must be used either for the
payment of indebtedness or the mainte-
nance, operation, betterment or enlarge
ment of its transportation facilities and
not otherwise.
Capital stock or shares issued in yio-
latien. of the provisions OF this section
shall be void, whether in the hands of
the original purchaser or any subsequent
purchaser. and may be Cancelled In a
suit brought. by the commission or by
any citizen of the United States. for that
purpose. Every stockholder. director or
officer through whose vote or act a vto-
lation of the provisions of this section
occurs shall be guilty OF a felony, and
upon conviction shall be fined not less
than $1,000 and not more than 100000,
and be imprisoned not less than one year
and not more than three years.
Bonds and Indebtedness.
mo corporation or joint stock associa-
tion, being common carrier as defined in
the acts to which this act Is an amend
Inent. shall use or expend the proceeds or
any part thereof, or bonds or other evi-
denceS or indebtedness issued by 1T and
secured by mortgage. deed OF trust or
other lien upon the property of such car
rier, except as follows towit:
'First-ln refunding existing bonds or
other evidences of Indebtedness secured
by mortgage, or deed of trust or other
lien upon the property of the CORPORATION
or joint stock association in which event
the par of the new bonds or other evil
dences of Indebtedness shall not exceed
the par of the existing bonds or other
evidences of Indebtedness.
'Second-To pay Indebtedness incurre.
in the extension, betterment maintenance
or operation of the facilities or instru-
mentalities for transportation
Penalties for Violations.
Third. For the construction or ac
QUESTION of additional lines, facilities
and instrumentalities for transportation
which the corporation or joint stock
association may lawfully construct or
acquire