The Ordway new era., 1910-01-14

the order Of the commission reducing
such rates are affirmed. 1t may be doubt
cd how effective this remedy really IL.
Experience has shown that many. per-
haps most shippers do not resort to pro-
ceedings to recover the excessive rates
which they may have been required to
pay. for the simple reason that they have
added the rates paid to the cost OF tho
goods. and thus enhanced tho price there
Of to their customers. and that the public
has In effect paid the bill On the other
hand. the enormous volume Of transpor-
tation charges. tho great number OF sep
arate tarins nled annually with the IN
terstAte commerce commission. amount
ing to almost 100000. and the impossible
ity OF any commission supervising the
making of tariffs In advance OF their be-
coming effective on every transportation
line within the United States to tho sx-
tent that would be necessary II their ac-
king of every tarin. has satisfied mo that
this power. II granted. should be con-
ferred in a very limited and restricted
sorm.
Commission Should Probe Change.
I therefore recommend that the inter-
state commerce commission be empow-
cred whenever any proposed Increase OF
plant or Of Its own motion. to enter
upon an Investigation into the reasonable
ness OF such change. and that 1t be fur
ther empowered. in its discretion. TO
postpone the effective date OF such pro-
posed increase for a period not exceed
Ing 90 days beyond the date when such
rate would take effect. II within this
time II shall determine that such in
crease Is unreasonable. II may then. by
Its order. either forbid the Increase at
all. or hx the maximum beyond which
II shall not he made. II. on tho other
hand at the expiration OF this time. the
commission shall not have completed Its
investigation. then the rates shall take
erect precisely as Y would under the ex-
listing law. and the commission may con-
tinue its investigation with such results
as might be realized under the law as II
now stands
The claim Ia very earnestly advanced
by some large associations OF shippers
that shippers OF freight should be en-
powered to direct the route over which
their shipments should pass to destina-
tion. and in this connection II has been
urged that the provisions of section Is
OF the Interstate commerce act, which
now empowers the commission, after
hearing on complaint. to establish
through routes and ma ximum Joint rates
to be charged. etc. when no rcasona BILE
or satisfactory through route shall have
been already established. be amended 40
as to empower the commission to take
such action. even when one existing ren-
sonnble and satisfactory route already
d.
ditional routes. This seems to mo to
be a reasonable proposition.
The Republican platform of 1908 de-
clared In favor of amending the inter-
state commerce law. but SO as always to
maintain the principle OF competition be-
tween naturally competing lines, and
avoiding the common control Of such
lines by any means whatever. One OF
the most potent means of exercising such
control has been through the holding of
nf bv
other company owning n competing line.
This condition has grown up under OK
press Legislative power conferred by the
laws OF many states. and to attempt now
to suddenly reverse that policy so far
as It affects the ownership OF stocks here
tofore acquired. would be to ini1ict
Erievous injury. not only upon tho cor
porations affected but upon n large body
Of the investment holding public.
Plan to End Rail Combine.
I, however, recommend that the law
shall be amended so rs to provide that
from and after the date of its passag ge
no railroad company subject to the inter-
state commerce act shall. directly or in
kind in capital stock or purchase or
lease any railroad of any other corpora
ton which completes with It respecting
business to which the Interstate COM
the protection OF the minority stockhold-
ers in securing to them the best market
for ther stock. recommend that such
prohibition be coupled with . proviso
that It shall not operate to prevent any
corporation which. at the date OF passaK Ke
of such act shall own not less than one
half of the entire issued and outstanding
capital stock OF any other railroad COM
pany, from acquiring all or the remain
der OF such stock: nor to prohibit any
railroad company which at the date Of
the enactment OF the law 10 operating q
railroad OF any other corporation under
lease, executed of term not less than
S years. from acquiring the reversionary
ownership OF the demised railroad: but
that such provisions shall not operate to
authorize or validate the acquisition.
through stock ownership or otherwise.
of a competing line or interest therein in
viola ton of the antitrust or any other
law.
The Republican platform OF 1903 fur
ther declares in favor OF such national
legislation and supervision will pre-
vent the future over-issue of stocks and
bonds by Interstate carriers. and In order
to carry out its provisions I recommend
the enactment of a law providing that
no railroad corporation subject to the In
terstnte commerce act shall hereafter for
any purpose connected with relating
to any part of its business governed by
said act. issue any capital stock without
previous 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 previous or simultaneous pay
ment to such corporation OF not less than
the par value OF such bonds. other OBJ
legations. or. II issued at less than their
par value. then not without such pay
ment OF the reasonable market value OF
such bonds or obligations as ascertained
by the interstate commerce commits
sion: and that no property. service.
or other thing than money. shall be
taken in payment to such carrier cor
poration. OF the par or other required
price of such stock. bond or other obliga-
tion. except the fair value OF such prop
erty. services or other thing ascertainsd
by the commission and that such act
shall also contain provisions to prevent
ho h,,uc NV iron