The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-05-25
Attacks Capitalization Sec
tions and Supports Cum
Mrs Amendment.
VOTE is EXPECTED
BEFORE END OF DAY
Enough Democrats Said to Be
With Aldrich to Defeat Pro-
posed Change.

Senator La Toilette OF Wisconsin IN
characteristically vigorous speech. as
sailed various features Of the railroad
bill in the Senate today. He subjected
the capitalize tion sections Of the bill 70
a severe excoriation- He held IN effect
that these sections as drawn are more
calculated 10 al stock watering by the
railroads than to protect the public
from being Eeeced.
Senator La Toilette spoke out for a
valuation Of the railroad properties
Of the country. he declared the rail-
road rates are too high and have been
too high for years. In this connec-
tion he referred TO the recent move
ment OF the railroads in the direction
of increased rates. He declared the
bill as it stands does not give the In
terstate Commerce Commission ade-
quate power to control and regulate
rates and he supported the Cummins
amendment which would require the
approval OF proposed increases Of
rates before they can become effective.
Schemes" Discussed.
Senator La Toilette took the floor
shortly after the session opened at Il
O'Clock and spoke r.. about three
hours. He enumerated che propOsi-
tions in the capitalization sections
which he called schemes.
As TO section l3. he said.
Under THE section there are six
schemes for stock issue. any ol which.
AZ the option Of the railroad. may be
come the measure Of legal stock issues
and watering is permitted in nearly
every case"
Stock may be issued and sold az par
IN money or ~ may be paid foI in prop
erty, services or any thing other than
money at a fair v1luc which shall be
hNcd by the commission II does not ap-
pear that the value 10 he allowed shall
reDrrsent anytnlnS more Ihdn the judE-
ment OF the commission upon the ailega-
ttOns and showing 1f the carrier as mod
lhed by such snIV'ine as the Attorney
General may ulaks and such information
as the commission may have
Opposed By Wall Street.
NO appraisal is relJired. An apprais-
al which would oe o. value in determin-
ing the action OF the commission before
issuing the certificates would. through
delay. paralyze railroad hnauciering.
Wall Street would not stand for 1t and
II found no place in the bill"
Five other Plans Of stock issue which
were then set forth in detail
Taking uD the DIN section by section.
Senator La FOllC,te found four pro-
visions Of beneht 20 the public in the
measure presented 10 the Senate and
nine features calculated TO benefit the
railroads. he went over each Of these
at length.
Among the provisions he assaiIed bit
,g .eI-g a. IN me interest Of the railroads
! We're those allowing the court Of com
merce 10 pass on proposed merger and
legalize II and permitting traffic agree
ments on their being dled with the
Commission.
Democrats. Aid Aldrich.
\ poll Of the Democratic side Of the
Senate today by Senate leaders indi-
Gates that the Cummins amendment 10
the railroad bill vin be defeated. The
Administration forces, led by Senator
Aldrlch, will have a majority Of three
votes, unless some unexpected develop
ments follow.
The Aldrich Republicans are said 20
have obtained sufficient Democratic sup
port 10 carry their points II is learned
that Senators Martin Of Virginia. smith
OF Maryland. PaynteT OF Kentucky,
Fletcher OF Florida, and one or two
others. are being looked 10 by Senator
Aldrich to aid IN defeating the Cummins
amendment
BY the introduction Of the Martin
amendment which requires the Inter
state Commerce Commission TO render
decision upon applications for rate
Increases within six months, the situa-
ton has been seriously complicated
Democrats who favor the plan to have
the Interstate Commerce Commission
approve all rate Increases before they
become effective may find il necessary
to support the Martin amendment in
order to prevent an entire defeat of the
CumminS idea
InSurgent Republicans and many Of
/ the Democrats leaders do not think
/ that the Martin proposition requiring a
( decision within six months viii stand
I the test of the courts, They hold that
| Congress cannot require a tribonaI 10
render a decision within a specified
time
It is now expected that a vote on tho
/ Cummins and Martin amendments will
/ be reached before the Senate adjourns
this afternoon. Efforts are being made
! by all interests to reach vote.