Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-03-07
TAFT RAILROAD
BILLS PASSAGE
URGED n SENATE
CONTINUED from first P.se.3

-
prosecutor. which is declared to be
contrary to the correct theory of law
or procedure.
Commenting upon the provision for
investigation by the commission of pro-
posed increase in rates, the report says
that a majority of the committee is OF
opinion that the commission should be
authorized TO commence the investiga-
ton of proposed increase in rate, or
change in classification as soon as 1t Is
filed. The majority supports also the
proposition that at any time before the
rate or classification will become effec-
tive the commission should be empow-
cred to postpone the effective date Tor
a reasonable period to enable it 10 in
Vestigate the proposed action.
The bin fixes this reasonable period
at sixty days, and although the COM
mission recommended that this time be
extended to 120 days, the committee
says it feels that with due diligence the
commission can determine within the
time allotted whether the increase
should be approved.
AS to the provisions relating to
through rates, the shippers right to
route shipments and the making of an
nual reports, the majority follows the
line of argument advanced by Attorney
General Wickersham in his published
abstract of the bill.
Concerning the important sections
relating to the purchase of competing
lines. the report says:
Some criticism of this section has
been made upon the ground that it did
not prohibit the acquisition by means
of a holding corporation of stocks of
competing lines of railway. The pro-
visions of the Sherman antitrust law,
so completely covered that ground that
the committee deemed 1t unnecessary
to attempt a repetition of those prohi-
billions in this act. For the same rea-
son 1t was not deemed eXpedient to at
tempt to deal with the question of COM
binations of express companies or tele-
graph and telephone companies, be,
cause, where such combinations con-
stftute a restraint of trade. the Sher-
man act affords ample authority to
each n prevent them"
Attention is called to the fact that
the bill provides a means of ascertain
ing by judicial investigation and de-
- AA1ttAtA VI lOI " bpilo iAuN
contract proposed to be entered into
respecting the acquisition of stock or
property of railroads is in violation of
the prohibitions of the Sherman act be-
fore large investments of capital are
made in reliance upon a seeming,
although possibly wholly illusory
legality. This provision Is held TO be
of obvious advantage to the govern
ment. for the reason that such an in
vestigation would be conducted before
the contract became effective.
Bearing upon the provisions affecting
the issue of stocks and bonds. the re-
port takes up the legal side of the ques-
tons invovled. The bill in that regard
is defended. and the report says of this
feature of the bill:
These provisions are so framed as
not to prevent the ordinary means of
financing railroad companies, while in
%terposing an effectual protection
against the issue of stock or bond with
out adequate consideration.
while it may be objected that the
provisions of this act do not go fas
enough in regulating the capitalization
of railroad corporations, no candid
critic a fail to admit that they con-
stitute a long step in the direction Of
establishing national legislation and
supervision as will prevent the future
over-issue of stocks and bonds by in
terstate carriers, and tina they go as
far as prudent legislation should go in
entering upon this new field OF national
restraint upon the issue of stocks and
bonds by interstate carriers"