Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-01-07
COURT OF COMMERCE and
! FEDERAL incorporation
RECOMMENDED BY TAFT

of excessive rates charged IN cases
where the order of the commission re-
ducing such rates are affirmed 1t may
be doubted how effective this remedy
really is Experience has shown that
many, perhaps most, shipps rs do not
resort to proceedings to recover the
excessive rates which they may have
been required to pay, for the simple
reason that they have added the rates
paid 10 the cost of the goods and thus
enhanced the price thereof to their
customers and that the public has in
effect paid the bill.
Impossible to Supervise Tariffs.
On the other hand the enormous vol
ume Of transportation charges, the
great number of separate tariffs filed
annually with the interstate commerce
commission. amounting to almost 200
900, and the impossibility of any COM
mission supervising the making of
tariffs in advance of their becoming
effective on every transportation line
within the United States, to an extent
! that would be necessary if their active
! concurrence were required in the max
! ing of every tariff, have satisfied me
/ ludJ t1lS pO"SIs II d4lNCus SA4OuAO OC
conferred in a very limited and re-
| stricted form. I, therefore, recommend
| that the interstate commerce commits
/ sion be empowered whenever any pro-
! posed increase of rates is filed, at
once either on complaint or of its own
motion to enter upon an investiga-
! ton into the reasonableness of such
| change and that it be further en-
powered in its discretion to postpone
the effective date of such proposed in
crease for a period not exceeding sixty
| days beyond the date when such rate
would take effect. If within this time
It shall determine that such increase
IS unreasonable it may then by its
order either forbid the increase at all
or fix the maximum beyond which it
shall not be made. If, on the othe,
hand, at the expiration of this time
the commission shall not have COM
pleted its investigation, the rate shall
take effect precisely as it would unde
the existing law, and the commission
may continue its investigation.
know of no reason why a shipper
should not have the right to elect be-
tween two or more established through
else of this right to such reasonable
regulations as the interstate commerce
commission may prescribe.
recommend that law should be
amended so that it provides that from
and after the date of it's passage, no
railroad company subject to the act
shall directly or indirectly acquire any
interests of any kind in capital stock
or purchase or lease any railroad of
any other corporation which completes
with it respecting business to which
the interstate commerce act applies.
But especially for the protection of
minority stockholders in securing to
them the best market for their stock,
recommend that such prohibition be
coupled with prOviso that it shall not
operate to prevent any corporation
that at the date of the passage of such
act shall own not less than one-hah
of the entire issued and outstanding
capital stock of any other railroad
company from acquiring all or the re-
mainder of such stock nor to prohibit
any railroad, company which at the
date of the law is operating a railroad
of any other corporation under lease,
tACCuICA III d III vi nOl lGSS JBdu
twenty-five years, from acquiring the
reversionary ownership of the demised
railroads but that such provision shall
not operate to authorize or validate the
acquisition, through stock ownership
or otherwise of competing line or in
terest therein in antitrust or any 9TH
er law.
l recommend the enactment of 4
law providing that no railroad corpora
ton subject to the interstate law shall
for any purpose with or relating to
any part OF its business governed 10y
said act issue any capital stock with
out previous or simultaneous payment
to such corporation of not less than
the par value of such bonds or other
obligations or, if issued at less than
their par value, then not without such
payment a reasonable market value of
such bonds or obligations as ascer-
tanned by the interstate commerce
commission, and that no property,
services or other thing than money
shall be taken in payment to such car
rier corporation of the par or other
required price of such stock bond or
obligation except at the value or such
property, services or other thing as
ascertained by the commission, and
that such act shall also contain pro-
visions to prevent the abSse by the
imprOvident or improper issue OF notes
maturing at a period not exceeding
twelve months from date in such man
ner as to commit the commission to
the approval of a larger amount OF
stock or bonds in order to retire such
notes than should legitimately have
been required.
Such act should also provide for the
approval by the interstate commerce
commission of the amount of stock
and bonds to be issued by any rail- /
road company, subject to this act, upon |
any reorganization pursuant to ju- |
ducial 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 property which is