The Washington herald., 1910-01-04

While the conference at the
White House between President
TAFT and heads Of six great railway
systems yesterday was not produc-
tive Of any change in the Presi-
dents policy Of advocating impor-
tant amendments to the interstate
commerce law, the railway men.
while somewhat disappointed other
wise, went away in the satisfactory
knowledge that they had persuaded
the President to modify some Of the
views which he was prepared to
urge on Congress.
ADHEREs TO PLANS.
Generally speaking, the President
indicated that he intended to adhere
to the line of legislation he had
mapped out. He showed, however,
as did Attorney General Wicker
sham, he was ready to acknowledge
the Justice Of contentious made by
the railway men, and agreed to
mcdify some OF the most important
provisions OF the measure which has
been drawn under his direction
An example OF this, the judicial
spirit on the part Of the President,
was afforded in the matter OF OBJ
jecHons made by the railway men
to the provision in the proposed
administration bill that no railroad
company should acquire stock in
any competing railroad company or
hold stock in a competing railroad.
Claim IL Would Work Hardship.
It was pointed out 10 the President
that this would tend to work great hard
ship to minority stockholders of rail
roads whose stock was controlled by
competing companies. An instance where
such injustice might result was cited in
the case Of the New York Central ana
Hudson River Railroad Company and the
West Shore Railroad Company. Il was
explained to the President that the New
York Central owned a majority of stock
in the West Shore. and that through the
proposed provision the individuals hold
ing the minority stock Of the West
Shore would be prevented from dispos-
ing Of their stock holdings TO the New
York Central which was. it was as
serted. their only prospective market.
The contention was made that If the
individual minority stockholders Of the
West Shore could not sell their stock TO
the New York Central. it was doubtful
If they could dispose Of II at all, and 70
that extent their property interests rep
resented in this stock would be injured
materially.
Again. It was held that If the holdings
Of the Central and West Shore had TO be
sold IN compliance with the proposed
law, the individual minority stockholders
would be obliged to dispose of their hold
ings at a sacrifice.
Can Buy All stock.
President Taft and Attorney General
w!ckersham were impressed with the ar
gument presented, and as a result they
agreed to change the draft Of the FRO
posed bill. and the President in addition
said he would revise his message 10 con-
form 10 the change, so as 10 provide
that where one railroad company owned
a majority Of stock in a competing rail-
road, It shall have the right TO buy ad-
ditional stock, or all the remaining mi
nority stock Of such railroad, provided,
of course, that in doing D. it would not
come in conflict with the provisions OF
the Sherman Antitrust Law, forbidding
combinations in restraint Of trade
The bill will provide however, that
where one railroad company owns q
minority interest In the stock Of a COM
peting company. it shall not increase its
stock holdings in that competing COM
pany.
Eighty Per Cent Feature Eliminated.
In one Of the drafts of the adminlstra-
tons interstate commerce bill. prepared
under the direction Of Attorney General
Wickersham, there was provision that
no interstate railroad company shall
hereafter acquire, directly or Indirectly,
any interests in any capital stock OF
any railroad which competes. or is Hatur-
ally competitive. anywhere Ia any way.
provided, however. that nothing in this
section shall operate to prevent such
corporation. which al the date Of the
passage Of this act owns not less than
50 per cent of the entire issued and out
standing capital stock Of any other such
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