New-York tribune., 1910-02-18
NAY HOLD STOCK
In OTHER ROADS
TAFT R.fILRO4D BILL
MODIFIED.
Mergers Of Nou-Com Petlng
Eses Permitted-ReguIa-
fioH Of Financing

--..,,;~rtan. Feb 1.-THE adzlinistra-
-,+,~oa5 hin amending the inter
-,-777e-ee act originally intro
-be House by Representative
~ Michigan. was reintro-
80 hz- him today with z naE11oeF o.
a-7andments drawn ny At
-. General Wickersham. Ihese
..:s,o,s = Is believed BY the a0lhlh-
- nil prevent the bill from
,-e--;-- vi.h any legitimate nnanc-
ub;fa eHectually preventing the
&c of stocks and bonds without proper
1ezsI safeguards. The most important
changes follow
-=fI-oad company is left f-ee to &C
-,,i-. stock and bonds oT anofner non
-.--,s.i,o railroad. provided the ae9re
-. z-ourt OF stock and borcs issued
Eor sgol ACQUISITION shall not exceed N''
Barr ,r=lue of the property, as asoer
:, ere Interstate Commerce Con'r''ss'0'''
.-s .oo-euate par value OF the STOCK
L--s acquired without increase ~
=. =-7-e7ste interest payable on SN0'
tonds.
--e s-ock and bond provision i
.-ze5 60 zs 70 permit the reorsarl MA
- - -ail-oads and the merger o. IA
-oz5s not directely prohibited
:, re case Of the consolidation q
-,.-ra~ ~ Two or more railroads 1--0
- and bonds cf the consolidated OF
-----.- -o-77an- are not 20 exceed ClS
.---.g=+e amount q stock and bohds o-
-rA constituent coupanlee nor % II
-esz - the fair estimated Taiue o. ne
--.--t.z ~ -l7e consolidated or merged
--77nzrv IS ascertained by the eoIi1rllls-
son
The ar1 establishes the general prln-
---7. hat 70 stocks shall he issued ny
-=--az6z except 81 par and no bonds
.--a7+ - their reasonable market or
rer=7E vaIue IS ascer-aIn91 "- Ide iii'+i
s-.-- Commerce Commission and where
es--e- stock or bonds Is raid for IN prop
80 7-a fair value must be ascertaIned
~ ire commission
one -4v section des Is specifically with
,-e fzsae n stock and bonds on the re-
,-zzrfzz-ion IF existing companies. and
authorizes the issue Of stock 70 an
--e -4o-l- n the corupany reorEan1zed-
and bonds - IN amount rot exceeding
-rs outstanding bonds and other obllga-
IONS. includ.ng nev money PAID in pro
rsded the aggregate interest charges II
- usId r. the reorgsnized company do
rot exceed the aggregate existing IN
terest clarzes.
Where notes Of other obligations made
n conformity With the at are secured
T. the pledge Of bonds. . sale Of the
Pledged bonds 70 enforce the loan must
Re had - public auction, and notes may
oe made convertible into pledged bonds
N The basis Of the reasonable market or
selling value Of the bonds, as approved
b. the commission.
The amendments are SO framed that
tne re7 act shall not operate 70 impai r
ar contract. mortgage or other instru-
rre-r made prior To the passage OF the
&C.
Electric railroads are included IN the
score IF the bill This concession they
desired. IS was ascertained at the recent
lsarfngs- when Il was complained that
tHe bin Disseminated in favor Of the
steam lines. 10 the financial deTiment Of
the electric roads
Al amendment relating u the Com
r1erce Court limits its power TO that Of
: fedora. circuit court, TO meet the OBJ
lection made 10 the original provision
thar ne court would have more extensive
iu-5sdi ictIor than the existing circuit
courts OF the United States
Another amendment provides that any
Office of z railroad corporation no vio-
la.es she law may he punished by q fine
of $4,000. OF three years imprisonment,
CT both.