New-York tribune., 1910-06-02
NO PHYSICAL VALUATION
Senate Rejects La FolIette's
Scheme for Railroads.
BILL MAY PASS TO-DAY
Refusal to Re- enact Commodities
Ckuse-Amendment in Inter
est of Waterways Adopted.
Iron The Tribune Buresu.I

Iron The Tribune Burezu.l
washington. June 1.-Two important
rnendments 10 the railroad bin were de-
fested by ;he Senate to-day. one being Sen
ator La Follettes scheme for physical
valuation Of railroads. and the other pro
posal by Senator Bailey 10 modify the
commodities clause Of the Hepburn act
The Senate also voted down an amendment
by Senator Newlsnds providing for the
organization Of national holding companies
70 take over the ownership of interstate
carriers For many years Mr.. Newlsnds
has heen advocating the federal incorpora-
ton of railroads This met with so much
opposition in his own party that he decided
70 offer the holding companies plan as
suhstitute lie did not demand rollcall
on his Amendment. as he seemed 10 realize
he was in a hopeless minority. Various
other amendments were voted down and
several minor ones were adopted.
The Senate will meet At II O'Clock to-
morrow. and the leaders are hopeful that 2
nnal vote viii he taken before O'Clock
Some Senators wanted a session held to-
night, With view To disposing Of the bill
but there wss 80 much opposition that their
plan WAS abandoned.
The first ToFe taken oda- was on the
Ia
which was defeated. So n p. No. Demo
crate voted against the amendment. al
though several minority Senators refrained
from voting. Nr- la Toilette wanted the
names Of those Senator's absent without
raire announced. but ohiection was made
h. Senator MONEY the Democratic leader.
The following Republicans voted for the II,
Toilette amendment: Senators Bristow.
Brown. Borsh. Clspp. Crawford. Dixon, Dol
liver Gamble. Jones and La Toilette.
Rv a vote of 50 10 2s the senate then
Voted Gown en- amendment bv Senator Sim
mons authorizing the Interstate Commerce
Commission to ascertain the physical valU-
alton OF railroad property whenever il ap-
pears that this information is nect tssary %
determine the Tessonableness of rates.
senator Stones amendment providing for
the regulation Of railroad capitalization
WAS not satisfactory 10 the Democrats. the
regular Republicans or the insurgents, and
il was voted down without q Iolloall. Mr
Stone spoke At length in support of his
smen6ment
After 4 rollcsil had been ordered Sena-
tor Elkins accepted an amendment by Sen
ator Burton, prcv6ing that where a rail-
road has reduced its rates 20 meet water
competition it shall not be permitted 10 IN
crease such rates unless the Increase is
warranted by changed conditions. Mr..
Burton explained that he had some doubt
rs to the Constltutionality of this amend
inenf, but believed it could he supported on
the general ground that the Improvement
of waterways is national policy. lie said
the purpose Of his amendment was,to pre-
vent the destruction Of water competition
by railroads lowering their rates and rails
ing them when the water competitor had
been forced out OF business. The Burton
amendment was adopted. 50 10 !. the only
negative vote being that Of Senator Frye.
The text of the Burton amendment fol-
lows:
Whenever a railway railways in COM
petition with water route or routes shall
reduce the rates on the carriage of any
species Of freight II shall not be permitted
10 increase such rates unless. after hearing
hy the Interstate Commerce Commission ii
shall be found that such proposed increase
rests upon changed conditions other than
the elimination the decrease in water
competition. and the said commission is
hereby Sffen the right to prescribe mini
mum railroad rates on lines competing
with waterways whenever, in It's opinion
The object OF the railroad or railroads in
reducing rates is 10 destroy waterway com
petition
Mr. Elkins also accepted an amendment
hy senator Simmons providing that the In
terstate Commerce Commission shall not
permit a railroad 10 reduce ITS rates where
the effect Of the reduction vii he TO Ge-
Stroy water competition.
Another amendment by NJ. Burton which
was accepted provides that railroads shall
nor give information regarGins shipments
to thc competitor of 2 shIppeI. Mr.. Burton
defended This amendment the ground
that certain large corporations make it q
business 10 get information from carriers
regarding the shipments of their smaller
con- i,ctitors, with a view 20 Tersuading the
cons.cnee not to accept the shipment
when Senator Nep.lands's amendent re-
l.uirr to holding companies had been de-
rested several minor aflendnefts offere1
Dr. Senators BristoN and Snive1y were &C
,.tyted Tho Shively amy,ldmcn. gives a
sriIper tho same right as me government
te enforce penalties agains- a carrier in
cases where information relating to rates,
iuutinE etc, is refused
Senator Bailey then offered his amend
ment ia modify the commodities clause of
the Hepburn act. snd defended il in a
lone speech He said he desired to place
souarely before the supreme Court the
question of the right of the government to
enact legislation 6ivoTcinc transportation
sad production. lie declared that This ques-
iion had hecn lodged lry the court in its
decision IN the commodities case. which
he discussed z; length.
Senator's Plies. Hepburn and Sutherland
opposed the Bailey amendment. and Scna-
tor Rorsh spoke briefly in support of r.
The amendment was defeated. 81 to .. ten
Republicans voting for il and no Democrats
against il
After the defeat - the Bailey amend
r1ent Mr.. Crawford introduced similar
prottsion SO modified as TO permit rail
rosd company 10 transport articles of IFS ,
Tosed of for ninety DAYS through bona
fde sale This amendment was pending
when the Senate adjourned, and will be
the first bueiness in order tomorrow
HELD ON WIRE TAPPING CHARGE.
John Hartman. who said he is sales