The Green Forest tribune., 1910-01-14

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 o1 to their customers, and that the public has in effect paid the bill On the other hand the enormous volume of transpor- tation charges. the great number of sep arate tariffs filed annually with the in- terstate commerce commission, amount Ing to almost 200, coo, and the impossibi- ity or any commission supervising the making of tariffs in advance of their be- coming effective on every transportation line within the United States to the ex- tent that would be necessary if their ac- tive concurrence were required in the ma ileg of every tariff, has satisfied me that LillS power, if granted should be con ferred in very limited and restricted form.
 commission Should Probe Change. l therefore recommend that the inter- state commerce commission be empow- cred whenever any proposed increase of rates is filed, at once either on com plalnt or of it's own motion, to enter upon an investigation into the reasonable ness Of such change, and that it be fur ther empowered, in it's 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 tlme 1t shall determine that such in crease IS unreasonable, it may then by it's order, either forbid the increase at alt' or fix the maximum beyond which It snail 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 effect precisely as it would under the eX- lstlng law, and the commission may con-
 tlhue Its investigation with such results as might be realized under the law as it | now stands
 The claim is very earnestly advanced ny some large associations of shippers that shippers of freight should be em- powered to direct the route over which
 thelr shipments should pass to destina- uon' and in this connection it has been urged that the provisions of section 15 or the interstate commerce act which now empowers the commission after nearing on complaint, to establish through routes and maximum joint rates 10 De charged, etc, when no reasonab able 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 req sonable and satisfactory route already establish d. dltional routes. This seems to me to
 be 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 it affects the ownership of stocks here tofore so acquired. would be to inhict grievous injury, not only upon the cor porations affected but upon a large body
 of the investment holding public,
 Plan to End Rail Combine. l. 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 competes with it respecting
 business to which the interstate com merce act applies. But especially for the protection of the minority stockhold
 CTS in securing to them the best market for ther 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 passa ere of such act, shall own not less than one half of the entire issued and outstandine capital stock of any other railroad com pany from acquiring all the remain der of such stock; nor to prohibit any which at tba the enactment of the law is operating a railroad of any other corporation under lease executed of term not less than 9 years, from acquiring the reversionarv 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 ther declares in favor of such national legislation and supervision as will pre-
 vent the future over-ssue of stocks and bonds by interstate carriers, and in order to carry out it's 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 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 ob- ligatons or, if issued at less than their par value, then not without such pay ment of the reasonable market value of rInh de Il 1icroti to;, by the interstate commerce commits sion; and that 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 obiga- ton, except the fair value of such prop erty, services or other thing ascertained by the commissions; and that such act shall also contain provisions to prevent the abuse by the improvident or improp- issue of notes maturing at period not exceeding 12 months from date, In such manner as to commit the commits sion to the approval of a 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- tion 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 bill to carry out these recommendations, which will be fur nished upon request to the appropriate committee whenever it may be desired
 ANTITRUST LAW AND
 cEncDAI rIono