The Washington times., 1910-03-07
DEFENSE IS MADE
OF RAILROAD BILL
Senator ElkinS Submits Re-
port of His Committee
to Senate.
ANSWER is GIVEN
TO ITS OPPONENTS
Features of Measure Taken Up
One by One and Com
mended.

HenQed.
senator EIIIins chairman Of the Inter
state Commerce Committee OF the Sen
ate, today submitted the report to that
body bearing upon the Administration
railroad bill The report Is an exhaustive
defense Of the measure and an answer
10 the objections Of the minority mem
bcrs OF the committee More than half
OF il IS devoted to Justification Of the
proposed court Of commerce
u answer TO the objection that this
court would become more like a com
mission than a court, the majority re-
port sets forth that it is 70 be composed
of five circuit judges OF the United
81 ates designated 10 st - the commerce
court for hvc years, the term of one
judge expiring each year. This would
draw in from the general body of the
judiciary judge who has been dealing
with general questions Of Jurisprudence
and at the same time preserving in the
court a continuity Of personnel with the
technical knowledge gained by contin-
ued service IN the court.
Might Obuate Delays.
II Is argued. too, that the Court Of
Commerce would abviate the great de-
lays now experienced IN securing final
opinions by giving 70 exclusive iurisdic-
ton in cases for the enforcement Of a
forfeiture Of any order Of the Interstate
Commission; in cases TO enjoin or sus-
pend orders Of the commission, and in
cases Of mandamus proceedings author
lied TO be maintained in the Circuit
Court Of the United. States.
The court Is further defended on the
ground that all its actions are review
able by the Supreme Court OF the
United States and that under its decIs-
ions no property may be taken from a
railroad without due process OF law. II
is also declared that experience has
shown there viii he enough business
before the new court 10 engage its at
tcntion the year round
The committee discusses the provision
OF the bill permitting agreements be
tween railroads as 10 the classification
or freight, the rates, fares, and other
charges.
Making Agreements.
The contention that this declara-
ton" says the report. can only be
complied with by requiring the APPROX
al Of such agreements by the commits
sion before they become operative is
destitute Of the slightest foundation.
The right 10 make agreements subject
10 the APPROVAL OF the commission is
obviously a very different thing from
the right 20 make agreements only
with the previous approval Of the COM
mission"
The committee contends. too, that the
Interstate Commerce Commission has
fun power To- review freight CLASH
fca lions, which had been denied. As
Tor the obligation OF railroads TO fur
uisr accurate quotations OF rates. the
com nittee holds that the shipper
slOl ld show that damage has resulted
from false quotations before he can
reco- er.
Through routes and through rates as
autho lied by he new Dill are defende1
on the ground that q railroad should
not Dr. deprived of it's natural advantage
Of possessing a direct line between the
termini.
railroads contention that the shipper
should not designate the route his goods
were to travel between points The
committee points out that 1t would be
unfair 10 compel initial carriers 10 di-
rect shipments over the line Of aU-
other with whose practices OF handling
freight il is dissatisfied. and Yet for
whose action IL would be pecUniarily
liable.
Purchase of Competitors Defended.
The provisions Of the bill regulating
the purchase by railroads OF competing
lines is strongly defended The com
mittee says that the present act will
prohibit railroad corporations from ac-
curing directly or indirectly any in
terest I'm the capital stock and from
purchasing or leasing the line Of any
other railroad which is directly and sub
stantially competitive with that Of suCn
c. rrieT.
on the other hand. the report de-
cIares. where a company Is operating on
long term lease railroad Of another
company and has Incorporated il into
its system the power 10 acquire the
ownership Of the demised property is
in the public interest. as IT unites re-
spOuslbfity with control
The committee holds that the present
Sherman antitrust law prevents the
ACQUISITION b. means Of holding cor
porations Of the stocks OF competing
lines Of railroads.
To Prevent Overissue.
The committee maintains that the
proposed act embodies SUCH provisions
ear such national restriction and super
vision of issues Of stocks and bonds a.
VII prevent overissue OF either by car
rIe1s A corporation is allowed. thu
report sets forth, 10 issue bonds or othe
obligations 10 refund those now out
standing 10 an amUnt requisite to tak'
up those now issued. & corporation IL
also allowed TO issue stock at par Z,
retire bonds or other obligations nov
outstanding
Corporations. the committee holds
should be allowed in reorganization Il
issue bonds and ether obligations u
the aggregate amount Of iutereS
charges of the bonds and obligation
10 be issued by the new corporation. II
~ the case OF consol idation and merge
OF corporal tons. il * provided IN I'm
act the committee says. that stocks ma,
he issued 10 the aggregate amount O
the stocks Of the corporations merged