The San Francisco call., 1910-05-10

otherwise of the proceedings of
the interstate commerce commits
sion
The advantage of the court is
that we shall have a court of ex-
perts at Washington very familiar
with the whole business of inter-
state commerce and the. decisions
Affecting ii, and which viii be able
to dispose of the business before it
promptly and give efficiency to the
orders of the Interstate commerce
commission that are legal. The
whole object of the court is expe-
ditiOn and the whole defect of the
interstate commerce procedure
heretofore has been delay. l re-
gard the commerce court as prac-
tlcally the most important feature
in the bill.
Thus far it has remained in the
house, although by a close vote,
the senate.
Another feature of the bill is to
give the attorney general complete
contro3-oYer the litigation after it
has left the interstate commerce
commission and gets into court
Heretofore the interstate commerce
commission itself has controlled the
htgauon in the courts, and it pre-
sented the anomaly of quasi ju-
dicial tribunal suing in its own
behalf 10 confirm its own judg-
ments. 1t was thought wiser to
give this to the department. of jus
introduced by which shippers who
have an interest may be heard by
special counsel if they desire, under
regulations of the court
COMMISSION REVIEWS RATES
Another section requires COM
panies, by their agents, TO furnish
statement in writing, of the rate
or charge. applicable to a described
Shipment between stated places un-
der schedules or tariffs to which
such 2 n a
atty for failure.
The other provisions authorizes
the commission not only to re-
view rates but the classifications of
freight and enable the commission
OF its own motion to investigate the
question whether any rate is un-
Just or unreasonable or unjustly
discriminatory, or unduly preferen-
tial, or prejudicial, or otherwise in
violation of any Of the provisions
of the act.
Another provision requires the
commission to establish through
routes and joint rates, and to do
this upon complaint or upon its
own initiative, and it is given to
the shippers to select among those
routes thus established the route
which they prefer.
Section Is provides that no rail
road corporation under the inter
state commerce act shall herea fter
issue for any purpose connected
with or relating to any part of its
business governed by any such act,
stock except upon the payment of
the par value thereof; or any bond
without payment of not less than
the par value thereof; or if sold at
less than par value, then at not
less than its reasonable market or
selling value, to be ascertained by
the commission; and that no prop
erty or other thing than money
shall be taken in payment to the
corporation for stock or bonds eX-
cept at its face value, which shall
be ascertained and certified by the
commissions
TWO SECTIONS STRICKEN OUT
There are also provisions for re-
organization and merger which
contain similar limitations as to
the issue of stock and bonds. The
features that / have detailed re-
main in the bill.
Two sections have been stricken
out. Section attempted to legalize
the making of tariff agreements
not TO last longer than 80 days, be-
tween competing lines as to rates,
but forbade pooling. This was de-
clared for in the platform and rec
commended to congress in two or
three messages of President Roose-
Helt
The purpose was to legalize the
practice that will prevail whether
the law permits or not. 1t seems
to me essential that rates should
be fixed temporarily at the same
amount TO prevent a rate cutting
where each time the fixing of rates
is had. No one suggests the wis
dom of instituting prosecutions
under the antitrust law to pre-
vent this practice, and it seemed
wise therefore to formulate its
limitations to Continue and recog-
nize it as lawful; but the fears
that it might impair the efficacy of
the antitrust law in some in
definite
some members Of the senate that it
was thought wise to withdraw the
section.
Section 12 was also withdrawn.
That is the section that forbids the
acquisition by one railroad COM
pany of the stock in a competing
line, but where such an acquisition
has already been made of so per
cent authorizes the acquiring com
pany TO increase its holdings to 100
per cent This was not with the
view of strengthening the control
OF the acquiring company, for so
per cent is all that is needed. but it
was to keep open a market to the
minority stock holders to sell to
the majority stock holders. This,
too. ii was thought in some way in
fringed on the antitrust law. and
the whole section was dropped.
IMPORTANT FEATURES RETAINEl
I am hopeful the section may be
restored to the extent of forbid
ding future acquisition by one line
Of stock in a competing line 1t is
true that such an act affecting in
terstate commerce might be part of
conspiracy to restrain competi-
tion and so restrain trade and be
punished under the antitrust act.
but it would greatly facilitate pros
ecutions If the specific act of the
acquisition of stock in a competing
line could be denounced and num-
ished or prevented by Injunction.
think il viii be seen from this
review that the railroad bill. which
in many respects is the most i'm
portant of the administration meas
ures, still retains its important
features. and | am hopeful that
within the next two weeks we shall
see the passage of the bill in bofb
houses. the adjustment of the dif-
ferences between the houses ana
its final enactment. IT means a
great step forward in the mower of
regulation intrusted to the inter
state commerce commission subfect
TO a court review.
It does not tranSfer-and / shonld
be 10th to do this-from the hoard
of directors to the interstate com
nerce commission the power of
running and operating the rail-
roads. It still leaves wide discre-
tion in the owners of the property;
but the powers exercised by the
commission. / feel confident, can be
exercised for good and will not re-