The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1910-03-18
OPPOSE COURT OF
COMMERCE BILL
SENATORS ClAPP AND CUMMlNS
OBJECT TO ADMINISTRA-
TION MEASURES.
In Minority Report They Severely
Condemn the Measure Which, They
Say, Prevents Neither Combination
Nor DISQUALIFICATION of Railroads.

Senators Clapp of Minnesota and
Cummins of Iowa, have fired a broad
side at the administrations interstate
commerce bill.
In minority report the two sena-
tors make the astounding statement
that the bill prevents neither the COM
bination nor the overcapitalization of
railroads, and is declared to be inef-
fective for these evils because:
q. 1t is confined to railroad cor
porations, whereas it ought to include
all corporation common carriers sub
ject to the act.
'2. The inhibition as to the issu-
ance of both stock and bonds is limit
ed.
49, There is nothing to prevent
holding corporation from issuing all
the stock and bonds that it pleases to
ISSUE.
a. The privileges extended in reor-
CARNATIONS and consultations have
practically no limit.
IS. There is no regulation concern
ing the capitalization of the increas-
ing values of existing property or of
earnings that have been expended in
extending or improving property.
&c. 1t is expressly provided that,
although every provision of the law
be violated in the issuance of stocks
and bonds, they shall nevertheless be
valid in the hands of innocent pur-
chasers. This in itself makes the pro-
posed amendment substantially value
less.
Section IL of the bill as reported
by the committee" says the two sena-
tors, begins with the laudable attempt
to prevent the cons olidation or COM
bination of railroad lines which d.
rectly and substantially compete with
each other; but before it reaches it's
end it not only nullifies the prohibit
ton with which it started out, but act
ually takes the back track, and if it
were to become part of the law it
is our opinion that consultations and
combinations could be lawfully effect
ed that are now forbidden. It does
not include express, telephone or tele-
graph companies, and suburban or in
terurban electric passenger railway
corporations are declared not to be
railroad corporations. Any electric
passenger railway company could pur-
chase, so far as this bill would affect
the transaction, all the railways in
the United States and combine them
into a single corporation"
AS to the section relating to combi-
nations and the issue of stocks and
bonds the senators say:
eve believe that, however commend
able the motive which inspired the
writer of this section, the abuse of
over-capitalization can be continued
under it without legal abatement"
1--WE are of the opinion" says the re-
port, that the bill as reported by the
committee, while it has some excellent
provisions, is, as whole, not in ad-
vance in the regulation of interstate
commerce, but long step backward y
AS to the commerce court created
by the bill, the report sets forth:
THE court and the expenditure it
involves are wholly unnecessary.
1T seems to us fundamentally
wrong to create court whose sole
work will be the trial of railway cases.
1t is far better for the country that
all such controversies shall be dispos-
ed of by the regularly constituted judi
cial tribunals"
They move to strike the court-creat-
ing sections from the bill.
THE most Objectionable and harm
full feature of the bill under consider
alton is found in the departure from
the existing method of defending suits
brought by common carriers to set
aside, annul, enjoin or suspend the
orders of the interstate commerce
Section of the bill repeats the
antitrust law with respect to agree
ments between common carriers speci-
flying the classifications of freight and
the rates, fares, charges for transpor-
tation of passengers and freight and
expressly legalizes them. It is obvious
that this provision will destroy the last
vestige of competition between car
riers as to rates. The inevitable con-
sequence must be an increase in
rates."
They recommend that the interstate
commerce commission be given the
power to prescribe a relation between
rates.
To Oppose Measure on Floor.
The plans for consideration of the
railroad bill are now taking definite
shape and the measure will likely
come up for debate this week.
Senator Cummins will discuss the
bill for two or three days. He will be
followed by Senator Clapp. Both will
oppose the bill in many features and
will strive to obtain material amend
ments.
= -