Omaha daily bee., 1910-03-08
.FAVORS TAFT RAILROAD BILL
Majority Of Senate Committee De-
tends Prominent Features.
APPROVES COURT OF COMMERCE.
Act VIII Not Permit Combination 60
Suppress Competition, Say Re
port-EndOrses stocks and
Bond Feature.

| WASHINGTON, March I-"Cnrefuly
preserving the principles so clearly enun-
ciated in the republican platform Of
1905" is the way the majority Of the senate
committee on interstate commerce, which
made it's report today on the administration
railroad bill, interprets the provisions to
permit common carriers to enter into traf-
f1c ageements.
The report is signed by Senators Elkins,
Cullom. Aldrich, Kean, Crane and Nixon,
and will be printed with the minority re-
port submitted a few days ago by Senators
Clapp and Cummins, and the individual re-
port Of Senator Newiands.
Approval of tho court Of fea-
ture is given prominence. although COM
ment upon other provisions ls far more
interesting. For instance, the report says
that the effect OF the traffic agreement
provision is to relieve carriers from the
prohibition OF the antitrust act, while
preserving unimpaired the control Of the
Interstate Commerce commission over all
such agreements, 1t is declared that the
provision is in exact compliance with the
declaration in the republican platform.
Maintains Competitive Principle.
After quoting the clause OF the platform
concerning such agreements the report
says:
The contention that this declaration can
only be compiled with by requiring the
approval of such agreements by the Inter
state Commerce commission before they
become operative is, in the opinion of the
committee, destitute Of the slightest founda-
ton.
The section in question carefully pre-
serves the principles clearly enunolated In
fbA nIaffOrm and onI.f hy a uiIgI diotnr-
tion of Language could it be contended that
this carefully guarded provision involved
any abandonment of the principles OF COM
petition between naturally competing
lines"
Indorsing the proposed court OF com
merce, the report a y that the principal
argumen in favor of it's creation Is that
1t will prevent delay and confusion in the
enforcement Of the law by creating one
tribunal specially versed In the complicated
and often technical questions arising out
Of the application Of the interstate COM
merce law to railroads and other carriers
subject to the act,
Supreme court rulings are cited in sup
port OF the contention that the scope of
review OF the commissions orders in the
court will not be, wider than It is now In
the circuit courts, 1t is commended that
courts ought not to be endowed with merely
administrative powers, such as are In
volved In the exercise of the commissions
discretion. The claim that there will not
be enough business to keep the tribunal
occupied is not seriously considered by the
commission.
Separation of Functions.
The administration bill gives the attorney
general entire control of the interests of
the government in all cases and pro-
ceedings In the court of commerce and In
the supreme court on appeaIocases. This
Is a change fromNthe existing law. The
committee says that the present system
combines In the members OF the Interstate
Commerce commission the functions of In
v~estigator, judge ana prosecutor, which is
declared to be contrary to the correct
theory Of law or procedure.
Commenting upon the provision for in
vestlgatlon by the committee Of proposed
increases in rates. the report says that a
majority of the committee is of opinion
that the committee should be authorized
to commence the investigation Of a pro-
posed increase in rates, or change. in
classification as soon as It is filed. The
majority supports also the proposition that
any time before the rate or classification
will become effective the commission should
be empowered to postpone the effective
date for a reasonable period to enable It
to investigate the proposed action.
The bill fixes this reasonable period at
sixty days and although the commission
that this time be extended
to 12O days the commission says it believes
that with due diligence the commission
can determine within the time allotted
whether the increase should be approved.
Provision as to Combinations.
AS to the provisions relating to through
and through routes, the shippers
ought to route the shipment, and in the
making OF the annual report, the majority
follows the line of argument advanced by
General Wickersham in his pub
llshed abstract Of the bill.
Concerning the important sections relat-
ing to the purchase of competing lines, the
says:
such criticism OF this section has been
made upon the ground that it did not pro-
the acquisition by means OF a holding
OF stocks of competing lines
of railway. The provisions OF the Sher.
man antitrust law SO completely cover
that ground that the committee deemed 1t
unnecessary to attempt a repetition OF
those prohibitions in this act. For the
same reason It was not deemed expedlent )
to attempt to deal with the questions OF
combinations Of express companies or tele-
graph and telephone companies, because
where such combinations constitute a re-
straint Of trade, the Sherman act affords
ample authority to reach and prevent
them"
Attention is called to the fact that the
bill provides a means of ascertaining by
judicial investigation and determination
whether or not a bona flde contract pro-
posed to be entered into respecting the
acquisition OF stock or property Of rail
roads is In violation Of the prohibitions of
the Sherman act before large investments
of capital are made in reliance upon a
seeming, although positively wholly illus
CRY. legality. This provision is held to be
Of obvious advantage to the government
for the reason that such an investigation
would be conducted before the contract
became effective. Bearing upon the issue
Of stocks and bonds the report takes up
tho legal side OF the questions involved.
The bill in that regard is defended and the
report says ~ this feature:
stOcE and Bonds Feature.
These provisions are so framed as not
TO prevent the ordinary means OF financing
railroad companies, while interposing an