The citizen. (Honesdale, Pa.) 1908-1914, 1910-01-05
MESSAGE DIVIDED.
Railroad MagnateS Gain
Concession From Taft.
MORGAN PLANNED CONFERENCE
He Saw Mr.. Taft at the White
House and Arranged For Visit
by Representatives of Six
Great Systems.
MORGAN PLANNED CONFERENCE

Washington, Jan. Awhile the con-
ference at the White House between
great railway systems was not produc-
tive of any change in the presidents
policy of advocating important amend
ments to the interstate commerce law,
the railway men went away satisfied
that they had persuaded the president
TO modify some of the views which he
was prepared to urge on congress.
The president indicated that he was
ready to acknowledge the justice of
contentious made by the railway men
and agreed to modify some of the
most important provisions of the
measure which has been drawn under
his direction.
An example of this judicial spirit Oh
the part of the president was afforded
in the matter of objections made by
the railway men to the provision in
the proposed administration bill that
no railroad company should acquire
stock in any competing railroad com
pany or hold stock in a competing rail-
road.
1t was pointed out to the president
that this would tend to work great
hardship to minority stockholders of
railroads whose stock was controlled
by competing companies. An instance
where such injustice might result was
cited in the case Of the New York Cen
tral and Hudson River Railroad com
pany and the West-.Shorez Ran"cai
company.
1t was explained to the president
that the New York Central owned Il
majority stock in the West Shore and
that through the proposed provisions
the individuals holding the minority
stock of the West Shore would be pre-
vented from disposing of their stock
holdings to the New York Central
which was, it was asserted, their only
prospective market.
Again it was held that if the hold
ings of the Central in the West Shore
had to be sold in compliance with the
proposed law the individual minority
stockholders would be obliged to dis
pose of their holdings at a sacrifice.
President Taft and Attorney Genera
Wickersham were impressed with the
argument presented, and as result
they agreed to change the draft of tn,
proposed bill, and the president in ad
ditiOn said he would revise his mes
sage to conform to the change so as [,
provide that where one railroad com
nj nf in
competing railroad it shall have tn,
right to buy additional stock or all tn,
remaining minority stock of such rail
road, provided, of course, in doing 81
it would not come in conflict with tn,
provisions of the Sherman antitrus
law forbidding combinations in re
straint of trade.
The bill will provide, however, tina
where one railroad company owns
minority interest in the stock Of ;
competing company it shall not i'll
crease its stock holdings in that com
peting company.
Incident to the conference 1t becam,
known that the visit of the railroad
presidents to the White House was ar
RAJ ged for by j. Z. Morgan. Whel
President Taft was in New York las
Thursday suggestion came to hin
that Mr.. Morgan would like to tall
with him before Mr.. Tafts departur,
for Washington.
However, this was not feasible, ant
it was agreed that Mr.. Morgan SHOULD
call on the president in Washington
on Friday morning. At that inter
view the president and Mr.. Morgan
had a brief discussion of the propose,
changes In the interstate commerc
law, and the arrangement was mad
which resulted in the visit of the 81!
railroad presidents to the Whit
House
Partly on account Of the delay whicl
would be caused by making tn
changes promised the railroad men Il
his special message and the draft O
the interstate commerce bill Presiden
Taft has decided to divide his mes
sage into two sections, one dealin
with the subject of antitrust law an
advocating federal incorporation 70
interstate corporations and the othe
urging that the Interstate commerc
law be amended along the lines pre-
posed by the administration bill.
The antitrust and federal incoFpors
ton message will go to congress o
Thursday and will contain about 400
words. The message advoeatin
changes In the Interstate eommeTc
law will so to congress on Friday.