The Sentinel=record., 1910-01-04

Lewis c. Ledyard, of New York, with them as general counsel
 Attorney General Wickersham rer. resented the legal department of the government.
 One of the changes which President Taft agreed to make in his recom- mendation has to do with the Ian guage of the proposed amendmen; prohibiting a railroad company from acquiring stock in any competing rail. road after a given date.
 It was claimed that the worine of this pipposed amendment wass uch that it 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 Now York Central line. serving virtually as an overflow traokage system on the west ern shore of the Hudson river
 The law, as President Taft will suggest it, will pro e that where a railroad owns fifty per cent. or more of the stock of another. it ma acquire the remainder. This. it is said, would afford measure of pro tection to minority stockholders. for. if the railroad owning the majority of the stock should be prohibited from acquiring any more. the minority would lose their only probable pur. chaser Where railroad holds less than the majority of stock in another line, however. it will be provided that it can acquire no more.
 Nothing in the interstate commerce amendments will be so drawn as 10 legalize in any way the holding of stock in a competing line where the holdings of the stock comes into viola tion of the antitrust law.
 The railrnad presidents were ns- tened to attentively by the Presiden. for more than two hours. He practi. cally informed them that while therr views would be given evsly considera- tion in the final wording of the mes. sage, he could not alter his basic recommendations
 The proposed interstate commerce court of five members to consider sp- reals from the interstate comnercc commission, with an appeal only 10 the Supreme Court of the Unitel States, was particularly objected to by the representatives of the rail. roads They declared the court would scon become nothing more than a .econd commission. They preferred ,J tlke appeals direct from the com mission to the federal courts. The recommendations for a court. how. ever, will remain in the message.
 The railroad presidents objected most seriously also to the proposed restrictions upon the issuance of stocks, bonds and short term notes.
 President Taft will recommend that no such securities shall be issued in the future without the approval Of the interstate commerce commission, based upon g 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 reason. able market value for bonds.
 The railroads claim these restric- tions will seriously interfere with their borrowing ability. The amend. ments are designed to prevent over issues of stock and bonds and the GUS tom known as watering. If a,iopt- ed, it is said, the amendment a.so wouldp ut an end to what is known as speculative constructio..'
 The railroad presidents objected further to the proposed amendment giving to shippers the right of select ing through route for their goods and to giving the interstate commerce commission the right to initiate com. paints and hold up new ratings and clas:ifications by a railroad until suf- ficient cause shall be shown for the new rates