The Washington herald., 1910-06-09

With the prospect of an early agree
nent in conference on the administration
railroad bill. Republican leaders predict
that Congress will adjourn by July l.
President Taft expects Congress to get
away by that time. and he is making
his arrangements accordingly. He has
been assured that the legislative plans
provide for an agreement on all meas
ures in controversy. in order that the
lawmakers may be able to leave Wash
ington in time to spend July az their
homes.
1t is already apparent that the con-
ferees on the railroad bill will have more
trouble in reaching an agreement on a
stock and bond provision than any other
section that is to be brought into con-
troversy,
The President insists upon the adop-
tion of the principle embodied in sections
Is, L, and IS of the House bill, which
give the Interstate Commerce Commits
sion authority over the issuance of stocks
and bonds of all railroads engaged in
commerce between the States.
President Taft discussed this subject
yesterday with Senator's AIdrich, Elkins,
and Crane. He made it plain that he re-
garded the stock and bond sections Of the
House bill as highly important
The President said that he was not
welded 10 the language Of the House bill
in this regard, but he did say that il was
his wish that the government should be
empowered to exercise supervision over
the future issues OF railroad securities.
Presidents Earnest Wish.
The railroad bill. as it was reported to
the Senate. contained provisions relating
10 stocks and bonds They provoked
good deal of debate, but, owing TO the
inability of Senator'S to effect a compro-
mise. they were dropped out of the meas
ure An effort will now be made. using
the House sections as basis. 20 draft
provision relating TO stocks and upon
which the cOnfereas may agree, and
which Will meet with the approval Of the
House.
Whether the conferees will be able to
come together on this proposition remains
to be seen. The earnest wish of the
President that something shall be done
in this particular will have great weight
with the conferees.
The House provisions relating TO rail-
road securities is drastic. They give the
Interstate Commerce Commission close
supervision over the issuance of all forms
OF stocks and bonds. They provide in
the first place that no railroad corpora
ton shall hereafter issue for any pur-
pose" any stocks, bonds, notes, or other
evidences of Indebtedness to an amount
exceeding that which may. from time 10
time. be reasonably necessary"
The amount Of securities to be issued
is 10 be fixed by the Interstate Com
merce Commission. and any sale of said
securities shall be at price not less than
their reasonable value" which is TO be
fixed by the commission. Railroads de-
string 10 issue securities are required 10
file such application with the commission,
stating to what purpose the proceeds are \
70 be put
Heavy Penalty Prescribed.
It is further provided that in the case
Jf a railway merger or consolidation the
stock TO be issued by such a corporation
shall not exceed the. fair estimated
value of the properties of such eonsoI-
dated corporation
Section Is OF the House bill provides
that ANY director. officer, or stockholder
who knowingly and willfuily assents to
or concurs in any issue Of securities for
hidden by the act shall be punished by a
fine of not more than $4,000 or imprison-
ment not longer than three years. or
both"
The indications are that the conference
committee on the administration railroad
bin viii make an early report tC. the
Senate and the House. While no ar
rangements have yet been made for
meeting of the conferees, it is under
stood that they will assemble to-day.
Although the cOnferees have not vet
come together, differences have developed
that fOreshadow a struggle between the
two Houses Unless the Senate consents
10 yield on a number of amendments,
the chances are that Representative
Mann and his colleagues will appeal to
the House TO accept the Senate bill, with
certain notifications that will be sug-
gested.
Democrats without Representation.
The Democrats in the Senate are with
out representation on the conference COM
mittee. Senator Foster. Of Louisiana,
was named as the Democratic conferee
on behalf OF the Senate. but he has gone
10 New Orleans with the expectation of
remaining away ten days. Several tele-
grams were sent to him. urging that he
return. Some other Democrat may be
made a member OF the committee.
The Representatives of the House viii
enter the conference with the belief that
they have the long end of the argument
AS a rule the Senate dominates the
House in conference committees.
In this instance the House cOnferees
have an argunSent that VIII have great
weight with their Senate brethren. There
are amendments in the Senate bin. adopt
ed by a combination of insurgents and
Democrats, that are exceedingly distaste-
fui TO the Senate regulars. They accepted
them IN the Senate with determination
to drop them out in conference
The railroad bill was sent to confer
ence by narrow margin. six Republi-
cans carrying the day for the organiza-
ton II the Senate cOnferees show
disposition to hold out against the de-
mands OF the House conferees. they viii
be Informed that in the final analysis. IL
an agreement cannot be reached in con-
ference. the House will be asked to ac~
cept the Senate BILL
This is expected to bring the Senate !
conferees TO time.