Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1910-01-20

tation charges. the great number OF sep
arate tariffs filed annually with the in
terstate commerce commission. amount
ing to almost 100000. and the impossible
lily or any commission supervising the
making of tariffs in advance OF their be-
coming effective on every transportation
line within the United States to the ex-
tent that would be necessary II their ac-
tive concurrence were required in the ma
king of every tariff, hes satisfied me that
this power. II granted, should be con-
ferred In very limited and restricted
form.
Commission Should Probe Change.
/ therefore recommend that the inter-
state commerce commission be empow-
cred whenever any proposed increase Of
rates Is filed, at once, either on COM
plant or or Its own notion to enter
upon an investigation into the reasonable
ness of such change. and that II be fur
ther empowered. in it's discretion, 10
postpone the effective date of such pro-
posed increase for a period not exceed
Ing so days beyond the date when such
rate would take effect. II within this
time 1t shall determine that such in
crease Is unreasonable. II may then, by
Its order. either forbid the increase at
all or NIX the maximum beyond which
IL shall not be made. IL, on the other
hand. at the expiration Of this time, the
commission shall not have completed its
investigation. then the rates shall take
erect precisely as II would under the ex-
lsung law, and the commission may con-
tinue its investigation with such results
as might be realized under the law as 1t
now stands
The claim Is very earnestly advanced
py some large associations of shippers
that shippers OF freight should be en-
| powered to direct the route over which
their shipments should pass to destina-
uon. and In this connection II has been
urged that the provisions of section is
| OF the Interstate commerce act, which
now empowers the commission after
nearing on complaint. to establish
| through routes and maximum Joint rates
| to be charged, etc. when no reasonable
| or satisfactory through route shall have
| been already established be amended So
| as to empower the commission to take
such action, even when one existing rea-
sonable and satisfactory route already
| exists, IL IL be possible to establish adj
| ditional routes. This seems to me to
be a reasonable proposition. know OF
| no reason why a shipper should not
| have the right to elect between two or
| more established through routes to which
the international carrier may be party,
| and to require his shipment to be trans
| ported by such routes as he may desig-
! nate for that purpose, subject, however,
| In the exercise of this right to such rea-
| sonable regulations as the interstate COM
merce commission may prescribe.
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 competition be-
| tween naturally competing lines, and
| avoiding the common control of such
! lines by any means whatever. One OF
| the most potent means of exercising such
| control has been through the holding of
/ Of rai
| other company owning a competing line
| This condition has grown up under ex-
| press legislative power conferred by the
| laws of many states. and to attempt now
| to suddenly reverse that policy so far
| as it affects the ownership of stocks here
tofore so acquired, would be to infict
! grievous injury, not only upon the cor
poratons affected but upon a large body
| of the investment holding public.
Plan to End Rail Combine.
/, however recommend that the law
| shall be amended so as to provide that
| from and after the date of its passage
no railroad company subject to the inter-
state commerce act shall, directly or in
| directly, acquire any interests OF any
| kind in capital stock or purchase or
| lease any railroad of any other corpora
| ton which completes with II respecting
| business to which the interstate COM
merce act applies. But especially for
| the protection of the minority stockhold-
| ers in securing to them the best market
| for Their stock, I recommend that such
| prohibition be coupled with a proyiso
| that it shall not operate to prevent any
| corporation which, at the date of passage
| of such act. shall own not less than one
| half of the entire issued and outstanding
capital stock of any other railroad COM
| pany, from acquiring all or the remain
| der of such stock; nor to prohibit any
| railroad company which at the date Of
| the enactment of the law is operating a
| railroad of any other corporation under
! lease, executed of term not less than
| 25 years from acquiring the reversionary
| ownership of the demised railroad: but
| that such provisions shall not operate to
| authorize or validate the acquisition.
| through stock ownership or otherwise
| of competing line or interest therein In
violation of the antitrust or any other
! law.
The Republican platform of 1908 fur
| Their declares in favor of such national
legislation and supervision as will pre-
| vent the future over-issue of stocks and
| bonds by interstate carriers, and In order
| to carry out its provisions l. recommend
| the enactment of a law providing that
| no railroad corporation subject to the in
| terstate commerce act shall hereafter for
| any purpose connected with or relating
| to any part of its business governed by
| said act issue any capital stock without
| previous or simultaneous payment to IL
| of not less than the par value of such
| stock, or any bonds or other obligations
| Except notes maturing not more than
one year from the date of their issue),
without the previous or simultaneous pay
ment to such corporation of not less than
the par value of such bonds, or other OBJ
legations, or, II issued at less than their
par value, then not without sucn pay
ment of the reasonable market value Of
such bonds or obligations as ascertained
by the interstate commerce commits
sion; and that no property, service,
or other thing than money, shall be
taken in payment to such carrier cor
poration, of the par or other required
price of such stock, bond or other obliga-
| ton, except the fair value of such prop
erty, services or other thing ascertained
by the commission; and that such act
shall also contain provisions to prevent
the abuse by the improvident or improp-
err issue of notes maturing at period
| not exceeding II months from date, in
such manner as to commit the commits
sion to the approval of a larger amount
of stock or bonds in order to retire such
notes than should legitimately have been
retired.
Such act should also provide for the
approval by the interstate commerce COM
mission of the amount of stock and bonds
10 be issued by any railroad company
subject to this act upon any reorganiZa-
ton, pursuant to judicial sale or other
legal proceedings, in order to prevent the
issue of stocks and bonds to an amount
in excess OF the fair value of the prop
erty which is the subject of such reor-
ganization.
BY my direction the attorney general
has drafted a bill to carry out these
recommendations, which will be fur
nished upon request to the appropriate
committee whenever 1t may be desired
ANTITRUST LAW AND
FEDERAL INTERPRETATIONS