Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-01-08

through the holding of stock of one COM
pany by another company owning a com
petinS line. The condition has grown aiI
by the laws of many states, and to at
tempt now to suddenly reverse that poll
cy so far as it affects the ownership of
stocks heretofore SO acquired, would be
to nflict a grievous injury, not only upon
the corporations affected but upon large
body of the investment holding public. |,
however recommend that the law shall
be amended so as to provide that from
and after the date of it's passage no rail-
road company subject to the interstate
commerce act. shall, directly or Indirect
ly 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 ap-
plies But especially for the protection
of the 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 which,
at the date of the passage of such act,
shall own not less than One-half of the
entire issued and outstanding capital
stock of any other railroad company,
| from acquiring all or the remainder of
such stock; nor to prohibit any railroad
company which at the date of the enact
| ment of the law is operating a railroad or
any other corporation under lease, exc
cutcd for a term of not less than twenty
five years. from acquiring the reversion-
airy ownership Of the demised railroad
but that such provisions shall not operate
to authorize or validate the acquisition,
through stock ownership or otherwise, of
competing line or interest therein in
violation of the anti trust or any other
law
The Republican platform of 1908 further
| declares in favor of such national legis-
| lation and supervision as will prevent the
! future over-issue of stocks and bonds by
| interstate carriers. and in order to carry
out it's provisions I recommend the enact
ment of law providing that no railroad
| corporation subject to the interstate com
merce act shall hereafter for any pur-
pose connected with or relating - any
! part of its business governed by Said act
4
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 pre-
vious or simultaneous payment to such
corporation of not less than the par value
! of such bonds. or other obligations, or, II
| issued at less than their par value, then
not without such payment of the reason
able maket value of such bonds or obi
I cations as ascertained by the interstate
commerce commission: and that no prop
erty.-services, or other thing than money
| shall be taken in payment to such carrier
corporation of the par or other required
price of such stock, bond or other obli-
CATION. except at the fair value of such
| property, services. or other thing as as
certained by the commission; and that
such act shaValso contain provisions to
prevent the abuse by the improvement and
improper issue of notes. maturing at a
period not exceeding twelve months from
date, in such manner as to commit the
amount of stock or bonds in order tc
retire such notes than should legitimately
have been required
Such act should also provide for the ap.
prevail by the interstate commerce COM
mission of the amount of stock and bonds
= Continued on Page Fourteen.)