The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-06-09
SECURITIES SECTIONS FIGHT
TITT FOR THE REGI LITION
az STOCkS lND BONDS.
insists 81 M, ne scene Nd~anais Prs,l.
lien m Railroad tltli Hsnse Con-
frrees 10 stand ~ Him senate I.ReIS
10 Weld In the DispuieSi Matters

get ~ an early agreement IN cuuferenc,
on 'hs Administration rlilyA1d hiH r.,
publican lssd~rs predict that Congress
will adjourn ~ July President Taf
-yI-c'- Congress ro g-f Nvay by thai
time ami u making arrangements accord
ngiy H. ha. h--n assured hat the
legislative plans provide Tor an aETe~n-l
on all measures ~ Controversy In time
20 permit the lawmakers 20 g. ~ in-ii
home before July
II j. already apparent that The c0n-
lsre-s on the railroad ban will have more
trouble ia reaching al agreement On q
stock and bond provision than on any
other section that ~ 20 he argued The
President insists upon the adoption II
m" principle sfnb0died m sections ~
ls ana N ~ the Hou-e bil which give the
Interstate COmmeTc. Commission au-
tnoniy over the ISSUANCE ~ stocks and
bonds u al roads engaged IA commerce
between the States
President Taft discussed this su6 Jet
today With senators Aldrich Eikins and
crane NJ made i plain that he regs rded
the stock and bond sections o. the House
bill a. highly important The Presi-
dent sald that no was MT welded ~ the
language n the Hou-s bill this regard.
but hs did zay tha, - vas his wish that
the Government should h- empowered
70 exercise SUPERVISION over 'h- future
issues - railrpad securities
The railroad bin a. 10 vas reported
20 the senate contained provisions re-
latlng 70 stocks and bonds They pro-
yekad a good deal ~ debate but owing
20 the inability of senator's - effect
cornprDmise they were dropped out II
the measure An effort wall nOv b. m ,ds
bv ~ cDnierres using tho Hours SECTIONS
a. q basis ~ draft provision relating
~ stocks and bonds which will ~ arc-pt.
able 10 the House Whether the con
feress will 10 able 70 come together on
this proposition - an op=n question now.
hut the earnest Wish o. the President
will have great weight With them
The HOUSE provisions relating - rail-
road securities are drastic They give the
Interstate Commerce Commission Close
supervision over the issuance of all forms
u stocks and bonds They provide in The
first place that no railroad corporation
shalt hereAfta" Issue for any purpose
anv stocks. bonds notes Or other evidences
~ Indebtedness 70 an amount exceeding
that which NAV from tame 70 time he
reasonably necessary The amount Of
securities - he issued ~ 20 no fixed by
the Interstate Commerce Commission.
and any sale - sAid securities shall be-
a. a price not lesa than their reasOnahl.
value which - o. be fiV@d Dv The COM
mission
Railroads desiring % issue securities
are required O. fle Application With the
commission. stating ~ what purpose the /,
proceeds are % be- PIT II 10 further pro- I
vidsd hat m the casa ~ railway merger
~ consolidation the stock ~ no issued bv I
such a corporation snail not exceed the I
far estimated value II the properties Of F.
such consolidated corporation
section n II the Housss bill provides 4
that any director. officer nr stockh0lder J
who knowingly and wilfully asseuts q +
MP cpnc'Irs ln auy issue II securities for
hidden bv the act snail be punished by a
fine ~ NOT more than 90 IN mp Imprtson- /
ment not longer than three years. orboth
Representative Mann u Illinois chair .
man ~ the HOUSE o0nfereeu. agreed with .
the President that some stock and bond .
pro- isiOns should bs enacted into Law
Il vas largely because the senate bin I
contained no such provisions that Mr
Mann insisted on the whole question
being thrrahed cut in conference
The first meeting Of the oonferses on
he railroad bill Vill be held tp-morrow
mere are a DOZEN or more features that
Etll excite discussion hut they are over.
,hadow - hy the HOUSE provisions relat-
ng 20 stocks and bonds Predictions
re made by the oouierres that thew will
'Dncluis their labors 10 very short
lime and probably make a report next
\ sek 4
4 he representatives ~ the House will
'ntsr the Conference With The belief that
hey have the long end ~ the argument
W a rule the senate dominates the House
"a conference committees In this IN
n~nt that will haze great weight with
heir senate brothers There a-e amend
nents IN the senate hill adopted by q
II insurgents and Democrats
hat are exceedingly dstastsful o. tho
snata regular. They accepted them in
he senate with the intention - dropping
hem out M conference
The railroad hill Uas sent ~ conference
" very narrus margin II the senate
pnferee= -hnw q tiFpOsition n hold out
gaiust the demands II the House con-
arsa-= they will h. informed thar "a the
nal analysi- II an agreement cannot he
sacHed Iu conference tie House will hs =
sked tD accept the senate bill a. ifIa h