Omaha daily bee., 1910-04-01
DEFENSE OF THE MERGER CLAUSE
Big Improvement Over Present Law,
is Speakers Statement.
TRAFFIC AGREEMENT IS COOL
This Section is Approved on Grounds
of Fairness.
COMPETITION INSISTED UPol
Senator Root Says IL Must be ReRu-
lated, But Not to Degrees that
VIII Work an
Injury.

Injury.
WASHINGTON. March 81 Commanding
the careful attention OF a majority OF his
colleagues, Senator Root today consumed
three hours Of the time Of the senate IN
continuing his speech In defense Of the
administration railroad bill He again failed
to conclude hs remarks.
He defended the merger provision Of the
bill as a great advance over existing law
in that st made the purchase Of one com
pany's stock by another an offense. He
argued however that such acquisition was
not now Illegal, except as part OF a con-
sDiracy. He also seuported the traffic
agreement section, but expressed willing
ness to require such agreements to be de-
pendent on the approval of the Interstate
Commerce commission.
Mr.. Root emphasized the provision as of
especial Importance. He declared the pres
eDt prohibtive act provided its own viola
tion. This course was most demoralizlng
and should not be encouraged by falling to
put in the power of the railroads to OBJ
serve the law and still make their agree
ments, It was better to have the railroads
voluntarily conform to the law than to
have them forced to do so.
Insists Upon Competition.
I'VE insist upon competition" he con-
tinued, but we prohibit such competition
as we think Injurious and we forget that
the railroads themselves may be better
able to enforce the law than can any Of
flcer in Washington"
He argued that in many matters the rail-
roads were practically required to enter
into agreement, and so long as this was
true. he said. it was absolutely necessary
that the roads should be authorized to
come together To do this would be to wipe
out an anomoly and abuse
In reply to an inquiry from Mr.. Rayner,
Mr. Root said he would favor an amend
ment requiring that agreements among rail-
roads should have the approval of the In
terstate Commerce commission before going
into effect. lie did not. however. regard
tho addition as OF particular Importance.
Tho nnly reason for its insertion would be
a desire TO avoid misunderstanding The
concession, however was considered by the
opponents OF the bill as important. Mr.. De-
pew advocated amending the bill so as to
require governmental approval. He said
he had held to that position for many years
before he entered the senate,
"And 1 believe that is the attitude of
SVefy rallroau man nthe country he
added.
The COmmissIOn's Power.
Senator CIapp said he would insist that
the bill be so worded as to make agree
ments unlawful unless approved by the
commission. Mr.. Root said he never would
consent to give the commission the right
TO suspend rate fixed by a railroad
without investigation
He would not consent that any official
should fix the railroad rates, but was
willing that the government should SUI
pervise rates. To do more would be to
change from the American to the Euro
pean system, he said, with government
ownership inevitably following.
1--WE all desire the extension of our
system, but we will never say TO the
capital Of the country that we encourage
it's Investment only with the end in view
of concentrating it's control in Washing
ton" said Mr. Root.
Mr. Cummins asked whether there was
any difference In principle in giving the
commission the power to suspend rates
for sixty days for the purpose of in
vestigating and In giving 1t power to
make an indefinite suspension.
"The power TO render indefinite sus-
pension is the power to render final judg-
nant" responded Mr.. Root, whereas the
mower OF temporary suspension is like
the granting of temporary injunction
The power to suspend indefinitely in
wolves the right to suspend without any
investigation"
Bacon Doesn't Agree.
Mr. BACON took issue with Mr.. Roots
assertion that the fixing of rates by the
government would lead to government
ownership. He said for thirty years the
railroad commission OF Georgia had had
such power.
MIR Root replied that there would be
found to be a vast difference between
state and government control. The chief
function Of ownership was the fixing OF
rates, he said, and he argued that II
the state could fix rates It could so con
troll them as to reduce them to point
where IL might be necessary to take alb
solute control.
Mr.. Aldrich asked Mr.. ROOT whether h
was in favor OF giving the Interstate Com
meree commission power to fix the rate
on ali railroads of Georgia.
MIR. Root replied he would not faVo
tuning over control Of all the railroad
10 the commission.
MIR Root contended tGht uhe merger sec
ION OF the bill did not interfere with tn
operation of the antitrust act. lie de
cared the supreme court. In the Northern
securities case, had not held the purchas
of stock TO be contrary to the anti-trus
law. on the contrary it had explicitly he'll
that congress could not control the mer
ACQUISITION OF stock Of a railroad corpor
alton The offense was IN the conspirac
and 1t might not always be that the pur
chase OF stock was in pursuance OF con
splracy, or II so, It was not always cas-
10 prove the fact He said this bill woul
relieve the government Of the necessity q
nuding a conspiracy.
From Theory 20 Practice.
This Is no advance he exclaimed. i
il merely an advance from the theory {
practice; It is advance from newspape
ASSERTIONS 70 definite legislation. The ser
ious question Is whether, under our consu
h,tion we can say that the railroad COZ
Icontinued on second paEel