The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-08
AFT RAILROAD BILL CUT
%, - TOWHITTEE STRIKES
ar IMPORTANT PROVISO.
A. Proposed 60 l.esaIiEe 90 Noa DlssuFb
tNIlns RaIlroad Mergers WITH Genre
p.rusIIne The nam ~ Drawn by ~
ru.nl,rrauSR Repsgtea IN the senate.

pei ng Lines TIE tDtil ~ Drawn BY ~.
u.ni,,raUSR Repsrtca Ia the senate.
VAsvIv5IoN. March The rocky
r...d 'hr' - before the Administration q
railroad 1 was clearly Indicated to-day
Wet me House Committee ON Inter-
...1,o aui Foreign Commerce eliminated
tsaiu-. II the hill that was considered
,-rv Important and otherwise changed
,.. measure.
ne ADMINISTRATION biil forbids rail
roats from acquiring control over com
rctus unssi either through stock pur-
,.a-"- or leases. Qualifying this general
trpt r.tion, however. was a provisO
.Nemp'ng railroads which now own
O. y,r cent OF the stock OF any other
ralrcai or that hold leases for more
tEan twenty years % any other line.
Under ths terms Of this proviso such
ra.rosd- would he able To acquire the
remainder Of the stock IL they 40 desired
" could renew the lease or acquire re-
,sonary ownership Of tho lessor COM
pany
II q this proviso that the House com
m.ttee has eliminated. The provisO was
inserted in the original bill by the Admin
s'rat,on after several railroad men had
seriously objected tn the sweeping pro-
hibition contained in the bill. These
-allrnad men contend-d that the effect
~ the bill a. originally drawn would be
% dissolve a number Of existing mergers
hat were not obnoxious To the present
,aw and create great confusion in the
railroad world
The case Of the New York Central and
he Wet Shore Railroad was cited n an
instance in point Here IL was said the
New York Central controlled a ma jority
- the stock of the competing line. Under
the general prohibition clause 81 the hall
the New York Central. IL was cont@nded.
would he forced 10 dispose Of It's holdings
N the West Shore. probably AZ q loss.
After several conferences with the rail-
rad men the President and the Attorney
General agreed To the insertion % the
rroviso. They figured that u would not
nterfere with existing mergers. but
would prevent the merging Of competing
N,nes IN the future. Members oi the
T'Ns~f' NAtutAtNAAgg VINO NtEs nNpNOa4eu Nn
ths proviso say that many railroads have
'-er quietly ~ work since the proviso
vas Inserted acquiring stock In competing
Iner
The s. per cent. ownernhip exemption
clause has been the subject % sharp dis
Cussion hefore the COMMITTEES for two
tays Those who were opposed to n
ontended that IL was negotiable and un-
air. complicated the whole bill and
.sgalized railroad combinations whose
lrgaitv u IN doubt under existing laws.
some Of the Democratic members %
the COMMITTEES declared that the proviao
enacted into Law would validate the |
mon Professionalism Pacific merger.
which Is being Questioned now by the
.sderaI authorities. some % the Re
rInncan lawyers IN the House gave u
their opinion. however. that this sec |
'pu Of the ON would not have any effect |
. combinations liable 20 prosecution |
.ndsr the sherman antitrust law. Repre-
"ntatiye stevens Of Minnesota was one |
Il the Republicans on tho Interstate Com |
isro~ COMMITTEES Who strongly Objscted |
. fhi, Proyiso and IL was STRICKEN out |
20 u's motion several Republicans and |
II. II the Democrats voting against 10.
Tie committee also adopted an amend |
ont to The hail offered by Representa- |
,- Russell 81 Texas prohibiting any |
rector Z a railroad corporation fTos2 |
'.cuIr.Hg a member Of the directorate |
an 'pmp-ting company. Ia adopted |
aatr"r amendment broadening the |
COG" ~ the word composition in the hall |
. % 7.sn struck ont the proviso eEsmpting |
.A-~'nn Fa-="ng~r lines. street. suburban |
g ur"r -han from the scope Of the hill |
Chairman Mann u the House COM |
Mite" las not been in accord with the |
ldfu u-'~ation's views on this tall. He |
'''-i against tho Interstate commerce !,
Hur feature ~ the hill. Judging from |
n- af'.'ui" and the action OF the CON- 1
.i i"- '"aard the - per cent. clause 10 |
-aplar-rr that the hill will have a stormy |
Ins Iu me House
10 the senate the Administration blIl |
80 reported out to-day practically a.
a.. submitted by the Administration.
.a-Tg-nts IN the senate. however.
u rr"iaunK To fight some features 81
." H'I They will be led by Senators
inm,n- and Clapp. who are msmbers
. '." i-t"r-tate Commerce COMMITTEES
20 ~t' =upnitted a minority report
vera. tavs ago
The majority report fled in the senate
..av ry SENATOR Elkina. chairman Of the
'' '- was signed by Senators Cul-
'. .rrr. k.sn. Crane, Nixon and the
~-rstor NswIaEds Of Nevada
.. rfvfuAl report an favor OF the
t' ...a .-eorpOrstion Of railroads
I.' Fa Ior.ry report defends every feat
TO 'r- ADMINISTRATION bill. quotes the
'-l .. platform TO support the
.'at .Fr = ~" bill authorizing trRfnc
-sT~-"al.- declares that ths provision
> tH~ "gIiatlng the Issues Of stocks
~ ..a .- step in the right direction.
ID '1s- 'rt' the proposed court Of com
49, " prevent delay and facilitate ths
mont 81 the Law. The majority
n0n,-Ei hat under nuEnsrous
~ N" supreme Court shs review
rmIssions orders AUTHORISED
mere court will not DO wider
now "y-rcissd by the Circuit
... Ha .rrry report defNncis the ckanRn