The Washington times., 1910-04-04
Opposition TO Features of
Administration Measure
COmpels Concessions.
PARAGRAPH
MAY BE WIPED OUT
Senator Rayner Raises Legal
Point That Proves
Pulling.
By John SNURE.

As the result Of the discussion Of the
railroad bin in the Senate the last three
days, changes o. importance IN the Ad-
ministration measure are practically as
sura6
These changes are such as Senator Al
drich and other leaders at the outset
opposed But 50 much sentiment for
them has developed that II viii be
necessary 70 make them.
Senator Root, after an argument Ia-t-
ing the berlgz part Of three afternoon.
has concluded his speech on the bin.
and has conceded that certain changes
ought 10 be made
one Of these changes will IN part
remedy what Senator's Clapp and Cum
Minis and others who have been speak
iu~ out against some Of the parts Of
the bin have looked on as a joker de-
signed 10 make Il possible for the pro-
posed court OF commerce 20 70 far be-
y0nd the Sherman law and all anti
trust statutes in considering whether
a combination Of roads should be per
mltted.
Merger Clause Opposed
At the close Of section y Of the bill Il
IS specified that in considering whether
a proposed merger shall be allowed, the
court may consider the benefits 10 the
pu5Ic- Il has been repeatedly urged
that this would make il possible for
the court OF commerce utterly 10 ignore
The Sherman Law and say that a contem-
plated combination should be permitted
the public
But senator Root in his speech said
ne believed these words relatin. 10 be1e-
MS 10 the public ought 20 be stricken
oU- and that the court had nor the righ-
70 consider such question
senator RayDer went so far as %
say lnat IN This provision Of the oil.
ll TACT, the whole provision reI4ing 10
i1e approval 10 advance Of a proposed
was visible He did not assert thst
anyone lu Administration circles was
responsible for this
Leaders Give Way.
In view Of Senator Roots position
with the insurgents and Democrats in
slst-ns that the court shall not have
power % consider the benefits 10 the
public proposed merger, 10 IS prac-
rcally a certainty the leaders VIII have
10 give way on this point.
indeed 10 looks much a. II the entire
feature II the bin intended % give the
interstate Commerce COMMISSION the
rlElt 20 say q merger that is proposed
shall Ee valid. would have 20 60 Even
senator Root, who is defending the bill.
admitted the whole proposition was OF
The consideration OF the provisions Of
the bin relating 10 capitalization con-
troll has raised difficult question.
Senator Root while admitting Sere
was some doubt as 10 the power Of the
Government 10 control liZdt-1n Of
railroads. took the ground that the is
sue ot stocks and bonds was so closely
connected with efficiency Of traffic that
lie believed Congress could control such
issue on The ground tlL IL was COM
uleTCe-
But senator Rayner took up the case
Of SIcI roads as The Baltimore and
ohio. having. as he said contractUrel
charters He wanted 20 know If Federal
control % capitalization was 10 be per
witted 10 e--pOS-eSS roads having con-
ta-tural charters ct Their rights 20
issue stocks ar q bonds In accordance
with their charters Senator EaEueT be-
'i-Vel this could not be done He de-
ela-ed that h. saw in the capitalization
control features q form OF national in
corporation law
Difficult Point Raised
The point raised by Senator Rsyner is
admitted 10 DC a difficult one by law
ye-s. But Senator Root held that the
fact the Iaw might not apply % Sucl a
case as that OF the Baltimore and Ohio
do not prevent its general enforce
meul
Another point which is about settled -
that traffic agreements OF railroads
must have the approval of the Inter
state Commerce Commission senator
Root admitted he favored making then
subject 70 the approval Of the conn IS
sion
However. there Is . difference Of O~il-
ion among the senate lawyers as 10 how
far The restriction should 60 Much de-
Ponds on the wording Of the provision
relating TO approval
What Senator DeQeU said he wanted
VAS that the approval of The commits
sion should be required before the aE-pe-
uent could Re effective. and also that
the commission should exercise cO1CiuI-
ing control over such agreements.