The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1910-01-14

terstate commerce commission. amount
ing to almost 200,00 and the SnpoSspfl-
ity of any commission supervising the
making of tariffs in advance OF their De-
coming effective on every transportation
line within the United States to the ex-
tent that would be necessary If their &C
tive concurrence were required in the ma
king of every tariff, has satisfied me that
this power, IL granted, should be con-
ferred in a 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 reasonable
ness of such change. and that 1t be fur
Their empowered, in it's 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 If 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. If, on the other
hand, at the expiration of this time, the
commission shall not have completed it's
investigation, then the rates shall take
erect 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-
sonable and satisfactory route already
exists, If 1T be possible, to establish ad-
ditional routes. This seems to me to
be reasonable proposition. I know of
no reason why a shipper should not
have the right to elect between two or
more established through routes to which
the international carrier may be a party,
and to require his shipment to be trans
ported by such routes as he may desig-
nate for that purpose, subject however,
in the exercise of this right to such rea-
sonable regulations as the interstate COM
merce commission may prescribe.
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 it affects the ownership of stocks here
tofore so acquired. would be to inflict
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 it's 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 it 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 Their stock, 1 recommend that such
prohibition be coupled with a proviso
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 or the remain
der Of such stock; nor to prohibit any
railroad company which at the date of
the enactment of the law Is operating
railroad of any other corporation under
lease executed of term not less than
Is 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 or otherwise.
of a competing line or interest therein in
violation of the antitrust or any other
law.
The Republican platform of 1908 fur
Their 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 1 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 it's business governed by
said act, issue any capital stock without
previous or simultaneous payment to it
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, If issued at less than their
par value, then not without sucn pay
80 ~ y .,,1r4 = I,,N -
such bonds or obligations as ascertained
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 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 improvident or improp-
err issue of notes maturing at a period
not exceeding II months from date, in
such manner as to commit the commits
sion to the approval of larger amount
Of stock or bonds in order to retire such
notes than should legitimately have been
retired.
Such act should also provide for the
approval by the interstate commerce COM
mission of the amount of stock and bonds
to be issued by any railroad company
subject to this act upon any reorganiza-
ton, pursuant to judicial sale or other
legal proceedings, in order to prevent the
issue of stocks and bonds to an amount
in excess of the fair value of the prop
erty which is the subject of such reor-
ganiZation.
BY my direction the attorney general
has drafted a bill to carry out these
which will be fur
nished upon request to the appropriate
committee whenever it may be desired.
LAW AND
FEDERAL INTERPRETATIONS