Arizona republican., 1910-01-08
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mission be empowered. whenever a proposed increase in rates is filed. at once to enter upon an investigation of the reasonableness of the increase and to make an order postponing the effective date of such increase until after such investigation shall be com pleted To this much objection has been made on the part of the car riers. They contend this would be- in effect. to take from owners of the rail roads the management of their proper ties and to clothe the interstate com merce commission with the original rate making power-a policy which was much discussed at the time of the passage of the Hepburn act in 19O5- 1906, which was then, and has been. distinctly rejected and in reply to the suggestion that they are able, b. re- sorting to the courts, to stay the talk ing effect of the order of the commits sion until it's reasonableness shall have been investigated by the courts, where as the people are deprived of any such remedy with respect to action by the carriers, they point to the provision of the interstate commerce act providing
  riers of excessive rates charged in cases where the order of the commits sion reducing such rates is affirmed.
 IL may be doubted how effective this remedy is.
 Experience has shown that many. perhaps most. shippers do not resort to proceedings to recover the eXces- sive rates which they have been re- quired to pay, for the simple reason that they have added the rate paid to the cost of the goods and thus en- hanced the price thereof to their GUS toners, and that the public in effect, has paid the bill.
 INVESTIGATION OF RATES.
 I recommend that the commission be empowered, whenever any proposed increase of rates is filed. at once, eth CT on complaint or of it's own motion. to enter upon an investigation into the reasonableness of such change, and that it be further empowered in its discretion to postpone the effective date of such proposed increase for period of not exceeding 60 days beyond the date when such rate would take effect. If, at the expiration of this time, the commission shall not have completed its investigation. then the rate shall take effect precisely as it would under the existing law, and the commission may continue its investi- gation with such results as might be realized as under .he !aX as it now stands.
 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 compe- tition between naturally competing lines and avoiding the common con- trUi of such lines by any means whatsoever One of the most po- tent means Of exercising such control has been through the holding of stock of one railroad company by another company owning a competing line. This condition has grown up under express legislative power con- ferred by the laws of many states, and to attempt now suddenly to re- verse that policy so far as it affects the ownership of stocks heretofore so acquired, would be to inflict a grievous injury not only upon the corporations affected. but upon a large body of the investment hold ing public.
 AS TO STOCK HOLDING
 I, however, recommend the law shall be amended so as to provide that. from and after the date of it's passage, 10 company subject to the il,tarState commerce commission shall directly CT indirectly acquire any literestr Of any kind in capital stock or purchase or leas4 any railroad. or ary other corporation which com petes with it respecting business to Ahioh the interstate commerce act applies But especially for the pro- tectitn Of the minority stockholders in securing to then the best market fer tne.r stock. I recommend that such rrohl lbition be coupled with proviso that it snail rot operate to prevent any corporation which, at the date of the passage of such act. shall own not less than one-half of the entire issue and outstanding capital stock of any other railroad company. from acquiring all or the remainder of such stocks. or to prohibit any railroad company which, at the date of the enactment of the law, is oper- ating a railroad or any other cor poration under lease, executed for term of not less than 25 years, from acquiring the reversionary ownership of the demised railroad. but that such operations shall not authorize or validate the acquisition through stock ownership or otherwise of com peting line or. interest therein in vio- lation of the antitrust or any other law.
 The question has arisen in the operation of the interstate com merce employers liability act as to whether suit can be brought against the employer company in any place other than that of its home office The right to bring the suit under this act should be as easy Of en- forcement as the right of a private person not in the company's employ to sue on an ordinary claim Bills for the foregoing purposes have been considered by the house of rep resentatives and have been passed and are now before the interstate commerce committee of the senate. I earnestly urge that they be enact ed into laws
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