The Washington times., 1911-02-03
COMMISSION PLANS
ANOTHER SESSION
Advocates of Government
Control of Railroad Capt.
taliZation to Be Heard.

If anybody wants the capitalization of
the Government he ought to come for
ward and explain his views to the Had
ley Stocks and Bonds Commission No
body is taking the trouble to do so
thus far, and the commission wants to
report soon.
Everybody who doesn't believe in Gov
crnment control is seizing the oppor-
tunity to exploit his opinions. The
commission could spend months I'm con-
tinuOus session, IL it would, hearing
bankers, financial lawyers, railroad
executives and other people In opposi-
ton to the plan. Believing that the
great mass of people want control, the
commission Is confronted with the fact
that nobody tells why. IT is particu-
larly anxious to hear from Senators La
Toilette and Cummins. who have ac-
lively supported such a plan, but they
have been so occupied with other af-
fairs that neither could appear before
the commission.
Recognizing, however, that every
body's business is nobody's business"
the commission is not going to let the
public's side go unrepresented. 1t will
hold another session in New York in
the near future, when the advocates of
Government control will be urged to
state their case.
Will Favor Regulation.
IT is strongly believed that the COM
mission will report in favor Of regu-
latory legislation. It's personnel the
known leanings of the members, orig
n 10.
tion. Since 1t has been taking testi-
mony the belief has been strengthened
by reason of the developing Indications
of such opinion.
Appointed by President Taft, under
composed of President Arthur T. Had
ley, OF Yale: Frederick n. Judson,
Frederick Strauss, Walter L. Fisher
and B. II. Meyer. interstate commits
sioner
Railroad men, bankers. financiers, and
In general the men who make or deal
in securities, have insisted that regula-
ton was not needed. The substance Gf
their contention is that capitalization
mas no enect on rates; that no harm is
done by decentralization because the
number of chares neither adds to nor
detracts from the property's value II
TOO many shares are issued. the price
goes down, and that is the sole erect;
go "O' oiASNteu tltler "dy.
Lines of Questioning.
That this view did not appeal strongly
to the commission has been made ap-
parent by the lines of questions asked
by members. The effect of over-capital-
ization have been inquired into repeat
ediy, in the evident effort to develop that
in fact it tends to encourage excessive
rates
Railroad men have urged that the
public would not provide money to build
railroads If it were asked to take Sc
curities at par; II would insist on get
ting them at a considerable discount. so
that there would be speculative in
ducement. The commission has been Civ
ing careful consideration to this argu-
ment, and has gathered much data from
recent railroad building experience to
disprove this contention.
No time limit is placed on the COM
mission, but ii hopes to meet in June
and begin work on a report. Already
consideration is being given 10 the char
aCter, contents, and scope of the re-
port. 1t is not determined whether spe-
Ciic recommendations for legislation
shall be made. The impression is strong
that whether the details of legislation
are suggested. the report will generally
sustain the contention for strong reg
ulative legislation. Chairman Clements,
of the Interstate Commerce Commission,
urged this in his recent discussion be-
fore the Stocks and Bonds Commission.
A report in June is considered likely to
he followed by strong recommendations
from President Taft in his next annual
message for such legislation.