The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-11
RICHARDSON ON
RAILROAD BILL
A|abamian Shows Up Bad
Provisions Of Bill
TWO FEATURES GONE
Mr.. Richardson Is Glad That Capital
stock Section Is Knocked Out
and Another Objectionable
Provision Follows
BY wATTERsoN sTEALEY

BY WATTERSON STEALEt
Washington, May 10.-fSpecial.)--
Representative Richardson of Alabama
who has taken prominent part in
the committee on interstate and for
the floor of the House, on the railroad
bill passed today, tonight made the
following statement:
1.-THE railroad bill as 1t passed the
House of Representatives today has
been stripped of two Of its most i'm
portant and objectionable features. one
Is section 10 that related to the acqui-
sition by a railroad of the capital stock
of another railroad, which is directly
and substantially a competitive line. 1t
was this section that gave authority to
the compserce court to enjoin in ad-
vance,>Any transaction by one railroad
contemplating or looking to the acqui-
|sition of the capital stock in another
railroad, being a competitor or run
ming on parallel lines. The other inn
portant elimination from the bill was
au tn ority granted to railroad COM
panies to make agreements relative
to charges for transportation of pas
ssngers and freight, which this section
said would not be unlawful. This was
a plain effort to repeal at least by
Implication the Sherman antitrust law
which forbds railroads making such
agreements or argeeing upon such
pooling.
"These are the leading sections and
provisions stricken from the original
administration bill. There were some i'm
portant amendments made to the or
lginal bill, chief of which was the pro-
visions relative to the physical valu~
alton of railroads, which | consider one
of the most important and desira BILE
additions to the railroad legislation of
the country. 1t was my pleasure tc
offer before the interstate and foreign
commerce committee when the railroad
bill was under consideration tie phys
ical valuation amendment wf..:4 wss
rejected hy tire committees, Sat whicn
was afterward with but little change
accepted on the floor of the House as
an amendment to section GA of the
bill.
Sections 13 and IA, as they appeared in
In the bill as 1t passed the house today.
These sections, in my Judgment, are very
Objectionable, because 1t purports to reg
ulate. direct and control any stock. bonds
or other evidences OF indebtedness of a
railroad company beyond that which may
be held reasonably necessary for the pur-
pose for which such bonds, stock or notes
are issued. The great objection to such
a provision is that 1t so limits the man
agement of the carriers business as to
impede and greatly interfere with the
successful operation of the carrier. 1t
initiates strongly against the develop
ment of new railroad lines and extension.
The objectionable feature of the other
section relating to the reorganization of
any railroad in the hands of receiver
or subject to be sold In any judicial pro-
ceedings by foreclosures by any mort
gage or any other instrument executed
of that character. This in my opinion,
would prove to be impracticable and
would result in a consolidation of rail-
road lines that would make a monopoly
of great menace to competition
There are several provisions of the
bill as 1t passed the House that will be
of benefit to the country. The classifica-
ton of freights Is a wholesome provision,
and the same thing can be said of the
right allowed the shipper to select the
route for his shipment, and also the pro-
vision that prescribes a penalty If the
agent of the carrier quotes to the shipper
incorrect freight charges. Through routes
are permitted to be established by the
commission wherever it appears that the
public good requires the same.
another very important amendment
made 1t that where railroad in COM
petition with water route reduces
It's rate on any kind of traffic it will
not be permitted to increase such rate
unless after hearing by the interstate
commerce commission, which means
that the railroad shall not decrease las
rates in order to destroy water com
petition, and when that is accomplished
will raise the rate back to the original
charges.
These are but a few of the matters
l can think of now that l propose to
call attention to.
"One Of the greatest objections to
the bill is that the section relating to
the issuance of capital stock by rail-
road carriers. the regulation of bonds,
and the consolidation of lines, comes
directly in conflict with the express
authority of state, and not only pre-
vents the lawful exercise of author
ity by the state for the future, but
annuls charters given by the states
these charters broad and liberal privi-
leges with a view of stimulating the
development of our railroad interest
have said frequently during the hear
'inEs Of the railroad bill that this was
a serious objection to the bill. and that
in my Judgment. it was the forerunner
OF the federal government authorizing
the grant of charters of license to all
railroads doing an interstate commerce
business between states. as well as
within the limits of a state.
--.s.----------