New-York tribune., 1910-03-08
HOUSE CHANGES
IN RAILROAD BILL.
If Committee Is Sustained Act
Hill Be Greatly filtered.
tF-oa1 The Tribune Bureau. J


Washington, March THE President
endeavor to protect the interests Of mi
nority stockholders in railroad corpora
tions will be entirely frustrated if the &C
tion taken b. the House Committee on In
terstate Commerce to-day is sustained by
the House.
BY practically unanimous vote. on
which. It is understood, Representative
Townsend, Of Michigan, alone supported
the Presidents recommendation. Section J.
CT the administration bill was so amended
as to prevent corporation which owns
more than oHe-haIf OF the issued capital
stock of any other railroad corporation from
acquiring any Of the remainder Of the
stock. The amendment also prohibits a
corporation operating q railroad on lease
made for not less than twenty years from
renewing such lease or acquiring the re-
versionary ownership OF the lessor rail
road.
President Taft desired that neither Of
these prohibitions he included in the bill on
the ground that the minority stockholders
would thereby suffer hardships. Mr. Town
send also pointed out 20 the committee
that when the Interstate Commerce Com
mission ruled or a reasonable rate, pro-
vided for a through route, and saw TO il
that equitable classifca tio1 was main
tsined. there is nc evil which can arise
from the recommendations by the Presi-
dent. The proviso stricken cut Of the bill
reads as follows:
That nothing in this section Shall oper-
ate TO prevent any such corporation which
at the date of tho passage OF this act
owns not less than one half of the entire
issue and outsta nding capital stock of any
other railroad corporation from acduring z
any Of t1e remainder OF such stock, nor TO
prevent any such corporation which is now
operating under lease, made for not les
than twenty years FROM renewing such a
lease or acquiring the reversionary owner
ship OF the lessor railroad either directly
or through purchases Of stock Of the lessor
COMPANY"
The stock section Of the bill! was further
amended by the addition of a provision
which Will prohibit officers and directors
of one railroad corporation from holding
similar positions in another railroad cor
poration. This was presented by Repre-
sentative Gordon Russell, of Texas. and
was carried by a vote ot Il to .. This ac-
ton was taken prior 10 the vote on the
merger amendment. and undoubtedly had
great effect on the later vote. Section Il
as amend I'd by the committee to-da-. and
With the addition of the Russell amend
meEt, now reads;
That no railroad corporation which is
a common carrier subject TO the act 10
regulate commerce. approved February l.
1sS'. as amended, shall hereafter acquire
directly or indirectly, any interest of what
soever kind, in the capital stock, OF pur-
chase or lease the railroad. Of any railroad
corporation which ccmpetes with such first
named cOrporatiC1 respecting business to
which said act to regulate commerce. as
amended, applies, and any corporation
which acquires any interest in capital stock.
or which purchases or leases railroad
contrary 70 this section or which holds
or retains any interest in capital stock or
in a railroad hereafter acquired in viola
tion of this section. shall be fined 5000 for
each day or part Of day during which it
holds or retains such interest unlawfully
acquired
A third amendment to the section vas
the striking out OF the following proviso:
That the words railroad corporation as
used in this section shall not apply TO or
include street, suburban or inteTurban cleo
trio passenger railway corporations" The
effect Of this will be 70 include those car
riers under Section L in its present FORM