Gilpin observer., 1910-01-13
the order of the commission reducing

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-
ceedings 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 other
hand. the enormous volume of transpor-
tatlon charges. the great number of sep
arate tariffs filed annually with the In
terstate commerce commission. amount
ing to almost 100000. and the impossible
ity OF any commission supervising the
making of tariffs in advance of their be-
coming effective every transportation
line within the United States to the ex-
tent that would be necessary IL 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 very limited and restricted
form.
Commission Should Probe Change.
therefore recommend that the inter-
state commerce commission be empow-
cred whenever any proposed increase of
rates is filed, at once. either on COM
plaint or of It's own motion. to enter
upon an investigation into the reasonable
ther empowered in its discretion, to
postpone the effective date of such pro-
posed increase for a period not exceed
ing 60 days beyond the date when such
rate would take effect II within this
time 1t shall determine that such in
crease is unreasonable. 1T may then. by
Its order, either forbid the increase at
ALL or fix the maximum beyond which
1t shall not be made. IT, on the other
hand. at the expiration of this time the
G Cha1 NOT h,,,, 49,
investigation, then the rates shall take
effect precisely as 1t would under the ex-
istins 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 q 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-
sonable and satisfactory route already
ditional 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 a s 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
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 IT affects the ownership of stocks here
tofore so acquired. would be to infict
grievous injury. not only upon the cor
porations affected but upon a large body
of the investment holding public
Plan to End Rail Combine.
I. however. recommend that the law
shall be amended so as 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 completes with II respecting
business to which the interstate COM
merce act applies. But especially for
the protection of the minority stockhold-
for ther stock, I recommend that such
prohibition be coupled with a proyiso
that II 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
the enactment of the law is operating a
ttaar 81.
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 10
authorize or validate the acquisition.
through stock ownership or otherwise
of a competing line or interest therein in
violation of the antitrust or any other
law.
The Republican platform OF 1908 fur
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 I recommend
the enactment of a 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 or simultaneous payment to II
of not less than the par value of such
stock. or 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 ut less than their
par value. then not without such pay
ment of the reasonable market value OF
such bonds or obligations as ascertained
by the interstate commerce commits
sion: and that no property. service,
49, 4.
taken In payment to such carrier cor
poration. of the par or other required
price OF such stock. bond or other obliga-
ton. 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 improvdent or improp-
er issue OF notes maturing at a period