Los Angeles herald., 1910-01-04

Pierpont Morgan, and another
meeting today with local railroad presi-
dents, it was announced that President
Taft had changed his plans regarding
his message to congress.
That strong pressure was brought to
bear on the president to change GER
tain of his recommendations regarding
interstate commerce and the antitrust
laws.
The message will be split into two
parts. The section dealing with trusts
will be sent to congress Thursday noon
The section dealing with the interstate
commerce, in which railroads are
vitality interested, will be deferred until
Friday.
A special message on conservation of
natural resources is expected to be
READY for congress Monday.
It was said late this afternoon the
first message probably would receive
greater attention if divided into two
parts, neither of more than 1000 words.
As a result of the call of the railroad
presidents, it was said only few
verbal changes would be made in the
message and that these would make
the presidents position more clear.
Railroad Men Protest
The railroad men, while deprecating
the idea of any legislation at all now,
when, they declared, conditions in the
railroad and industrial world are right
ing themselves after two years of de-
preston, did not seek to deter the pres
ident from sending his message. Ihey
devoted themselves to more or less
specific objections to the bill prepared
by Attorney General Wickersham.
The president. however, had made
his position clear to J. Pierpont Nor
gan in a brief interview last Friday
morning. Morgan in turn arranged for
tcday's conference and advised the
railroad men to confine themselves TO
suggestions of changes in amend
ments, rather than an attempt to IN
fluence the presidents general course.
Mr.. Taft has let it be known ne not
only will make recommendations for
changes in the law but that he ex-
poets congress to adopt the sugges-
tions at this session and thus carry out
the promises of the Republican party
platform.
Those who attended the conference
today were Presidents McCrea of the
Pennsylvania, Lovett of the Hartman
lines, Brown of the New York Cen
tial. Mellen of the New Haven, Baer
of the Reading and Finley of the
Southern railway.
one of the changes which President
Taft agreed to make in his recon-
mendations has to do with the lang
uage of the proposed amendment pro-
hibiting a railroad company from &C
curing stock in any competing rail-
road in the future, and from holding
stock in a competing railroad after
given date.
II was claimed the wording of this
proposed amendment was such 1t
might be held to apply to lines like the
New York Central and the West Shore.
The latter Is, and for many years has
been, a New York Central line, serv-
ing virtually as an overflow trackage
system on the western shore of the
Hudson river.
The law as President Taft will sug-
gest, will provide that where rail-
road owns so per cent or more of the
stock of another road, it may acquire
the remainder. This, it is said, would
afford a measure OF protection to mi
nority stockholders. for, if the railroad
owning the majority stock should be
prohibited from acquiring any more,
the minority would lose their only
probable purchaser. Where railroad
holds less than the majority of stock
in another line, however, it will be
provided that it can acquire no more
Cannot Violate Trust Law
Nothing in the interstate amend
naents will be so drawn as to legalize
the holding of stock in a competing
line where the holding of the stock re-
suits in violation of the antitrust law.
President Taft listened to the rail-
road officials fer more than two hours.
He had been informed in advance
and had taken for granted many OBJ
jections they would make, and he
practically informed them that, while
their views would be given every con-
sideration in the final wording of the
message, he could not alter his basic
recommendations
The presidents proposal of an inter-
state commerce court of five members
to consider appeals from the interstate
commerce commission, with an ap-
peal only to the United States SUI
preme court, was particularly OBJ
jected to by the railroad 6nen. They
declared the court soon would become
nothing more than a second commits
sion. They preferred to take appeals
direct from the commission to the fed
eral courts.
The recommendation for a court.
however, will remain.
The railroad presidents objected
most seriously also to the proposed re-
strictions on the issuance of stocks,
bonds and short-term notes.
HFRSluGIlI dll Will lCtOAiiiiiClld SiieNt
no such securities shall be issued in
the future without the approval of the
Interstate commerce commission,
passed on a finding that the issues are
for purposes authorized by law, and
for a price not less than par for stock,
and not less than the reasonable mar
ket value for bonds.
Railroads claim this restriction will
interfere seriously with their borrow
ing ability.
The amendments are designed to
prevent overissues of stocks and
bonds and the custom known as wa
tering." If adopted, it is said, the
amendment also would put an end to
what is known as speculative con-
struction."
The railroad presidents objected to
the proposed amendments giving. ship
pers the right of selecting a through
route for their goods and giving the
Interstate commerce commission the
right to initiate complaints and hold
up new ratings and rate classifications
until approval