The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1910-03-07
SPECIAL COURT +.
IS NOT NEEDED
An Expenditure for Court Of Com
merce Unnecessary Says
Minority Report.
RAILROAD BILL IS ATTACKED
Senators Cummins and clapp Today
Submit Minority Report on Mea-
sure Proposed by Administra-
ton for Railroads.

washington, March 7.-Senators
Cummins and Clapp. as members of
the Interstate Commerce Committee,
in submitting today a minority report
ON the administration railroad bill de-
clare that the effect OF the measure
would be not to further restrain the
mower of the common carriers but SER
iously to impair the efficiency of exist
ing statutes. The creation of a court
of commerce and the expenditure 1t
would involve are held to be wholly
unnecessary"
Reminding the Senate of "the tre-
mendous influences that will inevitab-
ly surround the selection of such
tribunal" they assert that it seems to
them fundamentally wrong to create a
court whose sole work will be the
trial of railway cases. During the
past Slk years, they contend, there
have been but &c cases in which such
Il court would have had jurisdiction.
Further objection is found i'm the
fact that the bill in it's present form
would give the court greater power to
review an order of the Interstate
Commerce Commission than is now
held by circuit courts and would ex-
tend that power to practical retrial
upon the merits of the order.
The opinion is expressed that under
the sections adding to the existing law
plan for the regulation of the capi-
talization of railroad corporations, the
abuse of over capitalization could be
legally continued. To accomplish the
purpose of the proposed law the two
Senators contend that all that is re-
quired is plain statement that cap
ital stock issued by corporations shall
be paid at par and if paid for in pro-
perty or services the reasonable value
thereof shall be fixed by the Commits
sion: and that capitalization of carriers
represented by bonds would be suffl
ciently guarded If the purpose for
which the bonds could be used were
carefully prescribed and penalties for
misuse of proceeds imposed
Pointing out some of the things
which they think renders the whole
plan ineffective. the Senators declare
Il should include all corporation COM
mon carriers, that there is nothing to
prevent holding corporation from is
suing all the stocks and bonds it
pleases. that the privileges extended In
reorganization and consolidation have
practically no limit that there Is no
regulation concerning the capitaliza-
tion of increasing values of existing
property or of earnings expended in
that 1t expressly provides that al
though every provision Of law be vio-
lated i'm the issuance OF stocks and
bonds they nevertheless shall be valid
i'm the hands of innocent purchasers.
What is termed the "most oojec-
tionable and harmful feature of tie
railroad bill is the proposed departure
from the existing method of defending
suits brought by carriers to make in
operative orders of the G. mission
The defense would be placed wholly
in the hands of the Attorney General
and the commission and shippers in
terested would be forbidden to take any
part i'm it. If the department of JUS
tice thought the commission was wrong
i'm the order il could allow judgment
for the carriers by default. Should
the cage go to trial however. the de-
fence would be entrusted to a lawyer
unfamiliar with it.
If the section designed to preven
the consolidation of railway lines
which directly or substantially com
pete with each other. should be enact
cd the opinion is expressed that com
binations could be lawfully effected
that were now forbidden. The sena
tors declare 1t would permit water an'
rail routes to consolidate; railroad
corporation to buy all competitiv
steamship lines: any railway compan
operated by electric power to purchas
all the railways i'm the United state
and combine them i'm single corpora
ton; any railway operated by stean
10 cxtingush all competition of elec
trio railways by purchase lease
combination: railroad company tina
has acquired before the act goes int
effect, so per cent. of the capital stoc
of a competing line. to purchase an
hold the remainder.
The proposal TO confer upon tn
court OF commerce jurisdiction to d'
eide cases before the transactions OF
of which they arise is strongly cor
demned. 1--WE know of no good res
son why court should attempt
declare In advance the legality of
proposed railway merger, any mo-
than IT should attempt to determine f'
an individual what he may lawful
do in his business" declare the w
senator's.
Objection also is found To the se
tion repeating the antitrust law WI
respect to rate agreements betwe'
common carriers, and expressly lega
izing such agreements. They contei
that the inevitable consequence mu