The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1910-01-13

the order Of the commission reducing
such rates are affirmed. II may be doubt
ed how effective this remedy really is.
Experience has shown that many, per-
haps most shippers do not resort to pro-
ceedings to recover the excessive rates
which they may have been required to
pay, for the simple reason that they have
added the rates paid to the cost Of the
goods, and thus enhanced the price there
of to their customers. and that the public
has in effect paid the bill. On the other
hand, the enormous volume Of transpor-
tation charges, abe great number of sep
arate tariffs filed annually with the in
terBtate commerce commission, amount
ing to almost 100000. and the impossible
ity OF 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 IL their ac-
tive concurrence were required in the ma
king of every tariff, has satisfied me that
this power, II granted. should be con-
ferred in a 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 of its own motion, to enter
| upon an investigation into the reasonable
ness of such change, and that it be fur
| ther empowered, in its discretion, to
| postpone the effective date of such pro-
posed increase for 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, 1t may then, by
| its order. either forbid the increase at
| all, or fix the maximum beyond which
1t shall not be made. If, on the other
hand, at the expiration of this time, the
| commission shall not have completed its
| investigation. then the rates shall take
effect precisely as it would under the ex-
| isting law, and the commission may con-
| unue its investigation with such results
as might be realized under the law as 1t
now stands
The claim is very earnestly advanced
| by some large associations of shippers
that shippers of freight should be en-
| powered to direct the route over which
their shipments should pass to destlna-
ton, and in this connection it has been
urged that the provisions of section 10
of the interstate commerce act which
now empowers the commission, after
hearing 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 II 1t be possible, to establish ad-
ditional routes. This seems to me to
be a reasonable proposition.
The Republican platform Of 1908 de-
clared in favor of amending the inter-
S-fo 70 To- htYk
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
stock of one railroad company by an
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 1t effects the ownership of stocks here.
tofore so acquired, would be to infiict
grievous injury, not only upon the cor.
porations affected but upon a large body
of the investment holding public.
Plan to End Rail Combine.
l. however, recommend that the law
shall be amended so as to provide thai
from and after the date of its passage
|
state commerce act shall, directly or in
directly, acquire any interests of any
kind in capital stock or purchase Oh
lease any railroad of any other corpora
ton which competes with 1t respectins
business to which the interstate com
merce act applies. But especially fol
the protection of the minority stockhold
ers in securing to them the best marke
for ther stock, I recommend that sucf
prohibition be coupled with a provisC
that it shall not operate to prevent any
corporation which, at the date of passag,
of such act, shall own not less than one
half of the entire issued and outstanding
capital stock of any other railroad com
nanv. from acquiring all or the remain
der of such stock; nor to prohibit any
railroad company which at the date O.
the enactment of the law Is operating {
railroad of any other corporation undel
lease. executed of a term not less thai
25 years, from acquiring the reversionary
ownership of the demised railroad; bu
that such provisions shall not operate Il
authorize or validate the acquisition
through stock ownership or otherwise
} of a competing line or interest therein IL
violation of the antitrust or any othe
law.
The Republican platform of 1908 fur
ther declares in favor of such nationa
| legislation and supervision as will pre-
vent the future oVer-issue Of stocks ant
bonds by interstate carriers, and in orde
to carry out it's provisions l recommend
the enactment of law providing tha
no railroad corporation subject to the in
terstate commerce act shall hereafter TO
| any purpose connected with or relating
| to any part of it's business governed b,
said act, issue any capital stock withou
, | previous or simultaneous payment to
of not less than the par value of sucl
stock, or any bonds or other obligation
Except notes maturing not more thai
, one year from the date of their issue)
| without the previous or simultaneous pay
| ment to such corporation of not less thai
! the par value of such bonds, or other OBJ
legations, or, if issued at less than thei
: | par value, then not without sucn pay
ment Of the reasonable market value o
such bonds or obligations as ascertaine
by the interstate commerce commits
SION and that no property, service
or other thing than money, shall b
8 taken in payment to such carrier cor
poration, of the par or other require
price of such stock, bond or other obliga
ton, except the fair value of such prop
r erty services or other thing ascertaine
r by the commission; and that such &C
e shall also contain provisions to preven
D the abuse by the improvident or tmpror
Q er issue of notes maturing at perio
d not exceeding II months from date, l
. such manner as to commit the commits
n sion to the approval of larger amour
: of stock or bonds in order to retire sue
t notes than should legitimately have bee
retired.
e Such act should also provide for tn
r approval by the interstate commerce CON
: mission of the amount of stock and bond
= to be issued by any railroad compan
a subject to this act upon any reorganiza
t ton. pursuant to judicial sale or othe
f legal proceedings, in order to prevent tn
d issue of stocks and bonds to an amour
= in excess of the fair value of the proI
r erty which is the subject of such reol
o ganization.
n BY my direction the attorney gener;
t has drafted a bill to carry out thes
e recommendations, which will be fu
It nished upon request to the appropriat
/ committee whenever 1t may be desired