The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1910-01-04
After Conference With Presidents of Six Great
Systems, Executive Sticks to Intention.
WILL SEND MESSAGE TO CONGRESS IN TWO PARTS
Section Dealing With Trusts Will Be Ready by Thursday
and One Dealing With Interstate Commerce Law
Will Be Deferred Until Frday-Naton's
Chief Explains.

changes in amendments rather than
to AN attempt 10 influence the presi-
lent as to his general course. MIR.
Taft has let ii be known he not only
Will make recommenda tions for
changes in the law, but That he ex-
pects congress to adopt the sugges-
tions at this session and thus carry
out the promises of the republican
Aatform. Those who attended the
conference today were President Nc
Crea of the Pennsylvania. Lovett of
the Hartman lines. Brown of the
New York Central. Mellen of the New
York, New Haven & Hartford, Baer of
the Philadelphia & Reading and Fin
ley of the Southern railway. The
railroad presidents brought Lewis
Cass Ledyard of New York. with them
as general counsel. Attorney General
wickersham represented the legal de-
partment of the government.
What Taft Wants.
One of the changes which President
Taft agreed to make in his recommen-
dations has to do with the proposed
amendment prohibiting railroad COM
pany from acquiring stock in any COM
holding stock in competing railroad
after given date. 1t was claimed
that the wording of this proposed
was such 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 New York Central line. serving
virtually as an overflow trackage sys-
- I,,l
son river. aMs..ss..aa--4+s
The law, as President Taft will sug.
gest, will provide that where a rail-
road owns so per cent or more of the
stock of another. it may acquire the
remainder. This, it is said. would af-
ford a measure OF protection to mi
nority stockholders, for, if railroad
owning the majority stock should be
prohibited from acquiring any more.
the minority would lose their
probable purchaser. Where a
railroad holds less than the
ma jority Of stock m another
line. however. 1t will he provided that
it can acquire no more.
Nothing in the interstate commerce
amendments will be so drawn as to
iegalize the holding of stock in COM
peting line where the holding of the
stock results in violation of the anti
trust law.
President Taft listened to the rail-
road officials for more than two hours.
He had been informed in advance and
had taken for granted many objec-
tions they would make. and he prac-
tically informed them that. while their
views would be given every consldera-
tion in the final wording OF the mes
sage. he could not alter his basic
recommendations. The presidents pro-
posai of an Interstate commerce court
Of five members tn consider appeals
from the Interstate commerce conn
mission with an appeal only to the
SUI rene court o! ihe United States
VAS particularly objected l.. ~ tac
railroad repr sentatiscs. Tney declared
that the court soon would become
nothing more than Il second
commission. They preferred to
take appeals direct from the
commission to the federal courts. The
recommendation for a court. however
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 finding that the issues are not
for purposes authorized by law and
for n price not less than par for stock
and not less than reasonable market
value for bonds.