The new era., 1910-01-20

the order OF the commission reducing
such rates are affirmed. 1t may be doubt
ed how effective this remedy really is.
Experience has shown that many, per-
haps most shippers do not resort to pro-
ceedinSs to recover the excessive rates
which they may have been required to
pay. for the simple reason that they have
ADDED the rates paid to the cost of the
goods, and thus enhanced the price there
OF to their customers. and that the public
has In effect paid the bill. On the Nother
hand. the enormous volume of transpor-
taton charges. the great number of sep
arate tariffs filed annually with the in
terstate commerce commission. amount
Ing to almost 200. 900. and the impossible
ity OF any commission supervising the
making of tariffs in advance of their be-
coming effective on every transportation
line within the United States 10 the ex-
tent that would be necessary II their ac-
tive concurrence were required in the ma
king of every tariff, has satisfied me that
this power. II granted. should be con-
ferred in n very limited and restricted
form.
Commission Should Probe Change.
1 therefore recommend that the inter-
state commerce commission be empow-
cred whenever any proposed increase of
| rates is filed at once, either on COM
| plant or of Its own motion, to enter
| upon an investigation into the reasonab ble-
| ness of such change. and that 1t be fur
| ther empowered. in its discretion. to
| postpone the effective date of such pro-
| posed increase for period not exceed
| ing 60 days beyond the date when such
| rate would take effect. If within this
| time 1t shall determine that such in
| crease Is unreasonable. 1t may then by
| Its order. either forbid the increase at
| ell. or fix the maximum beyond which
| 1t shall not be made II. on the other
| hand. at the expiration of this time the
| commission shall not have completed its
| investigation. then the rates shall take
| effect precisely as 1t would under the ex-
| listing law. and the commission may con-
| tinue its investigation with such results
as might be realized under the law as 1t
| now stands
| The claim is very earnestly advanced
| by some large associations of shippers
that shippers OF freight should be en-
| powered to direct the route over which
| their shipments should pass to destina-
ton. and In this connection it has been
urged that the provisions of section Is
| OF the interstate commerce act. which
| now empowers the commission after
hearing on complaint. to establish
| through routes and maximum joint rates
| to be charged. etc. when no reasonable
| or satisfactory through route shall have
| been already established, be amended so
| as to empower the commission to take
| such action, even when one existing rea-
| sonabe and satisfactory route already
exists II it be possible, to establish ad-
| dtional routes This seems to me to
| be a reasonable proposition.
| The Republican platform of 1908 de-
clared in favor of amending the inter-
| state commerce law. but so as always to
maintain the principle of competition be-
| tween naturally competing lines, and
| avoiding the common control of such
| lines by any means whatever. One of
the most potent means of exercising such
| control has been through the holding OF
| stock of one railroad company by an
| other company owning a competing line
| This condition has grown up under ex-
| press legislative power conferred by the
| laws of many states, and to attempt now
to suddenly reverse that policy so far
as 1t affects the ownership OF stocks here
| tofore so acquired would be to innict
| grievous injury. not only upon the cor
porations affected but upon large body
of the investment holding public.
Plan to End Rail Combine.
I. however. recommend that the law
| shall be amended so to provide that
from and after the date of its passage
! no railroad company subject to the inter-
| state commerce act shall. directly or in
| directly, acquire. any interests of any
kind in capital stock or purchase or
| lease any railroad of any other corpora
| ton which competes with 1t respecting
| business to which the interstate COM
merce act applies. But especially for
| the protection of the minority stockhold-
| ers in securing to them the best market
| for ther stock, / recommend that such
| prohibition be coupled with q proyiso
| that it shall not operate to prevent any
| corporation which, at the date of passage
| of such act, shall own not less than one
| half of the entire issued and outstanding
| CAPITAL stock of any other railroad COM
| pany. from acquiring all the remain
| der of such stock; nor to prohibit any
| railroad company which at the date of
l Low
| railroad of any other corporation under
lease. executed of term not less than
| 25 years. from acquiring the reversionary
ownership of the demised railroad: but
| that such provisions shall not operate to
authorize or validate the acquisition
through stock ownership otherwise
| of a competing line or interest therein in
| violation of the antitrust or any other
| law.
| ther declares in favor of such national
| legislation and supervision as will pre-
| vent the future over-issue of stocks and
| bonds by interstate carriers, and In order
TO carry out its provisions / recommend
the enactment of law providing that
no railroad corporation subject to the in
terstate commerce act shall hereafter for
any purpose connected with or relating
to any part of its business governed by
said act, issue any capital stock without
previous simultaneous payment to 1t
of not less than the par value of such
stock. any bonds or other obligations
Except notes maturing not more than
one year from the date of their issue).
without the previous or simultaneous pay
ment to such corporation of not less than
the par value of such bonds, or other OBJ
legations, or, II issued at less than their
par value, then not without sucn pay
ment of the reasonable market value of
such bonds or obligations as ascertaned
by the interstate commerce commits
sion; and that no property, service.
or other thing than money, shall be
taken in payment to such carrier cor
poration, of the par other required
price of such stock, bond or other obliga-
tion. except the fair value of such prop
erty, services or other thing ascertained
by the commission; and that such act
shall also contain provisions to prevent
the abuse by the improvident or improp-