The Bridgeport evening farmer., 1911-12-12
Against Federal Control of R, R.
 Stock Issues
Securities Commission, Headed
 by President Hadley, Regards Such Control as Impractical Publicity the Best Weapon

Publicity the Best Weapon
 The Railroad Securities Commission. headed by President Arthur T. Had ley, of Yale, has reported that IL would be practically impossible at this time to place issues of railroad securities under federal control. The commission recommends that enforc- ed publicity for all railroad financing is the most effective weapon against stock watering which the government has at it's command.
 Following are the commissions sug- gestions relating to publicity, 1ndlcat- ing points upon which amendments to the act to regulate commerce mlgnt be based:
 Every railroad corporation subject to the provisions of the act shall file with the Interstate Commerce Com mission on or prior to the date Of ls- suance of any stocks, bonds, notes or other evidences of Indebtedness pay able at periods of more than twelve months after the date thereof. and now or hereafter to be authorized. a certificate of notification in such form as the commission may from time to time determine and prescribe First:-
 (a) The total amount thereof au- thorized.
 (b) The number and amount thereof outstanding prior to the date of such certificate; the amount thereof there then undisposed of, and whether such amount is held in the treasury of the corporation as a free asset, or pledg- ed, and if pledged. the terms and con- ditiops of such pledge.
 (c)The number and amount tnere- of then to be issued and whether to be sold, pledged Or held in the treas ury of the corporation as free asset; if such securities are to be sold, the terms of sale if a contract for such sale has been made, and if any part of the consideration to be received therefore is other than money, an ac- curate and detailed description there of; if such securities are to be pledg- ed, the terms and conditions Of such pledge.
 (d) The number and amount there of remaining unisSued.
 e) If the issue is of shares of stock, the certificate shall also show the par value thereof, or if the issue is of shares of stock that have no specified nominal or par value, the number of such shares, and the number of then outstanding shares previously issued.
 Second-The preference or privi- leges granted to the holders of any such shares of stock; the dates of ma turity. rates of interest of any such bonds, notes or other evidences of in debtedness, and any conversion rights granted to the holders. thereof, and the price, if any, at which such shares or bonds may be redeemed.
 Whenever any securities set forth and described in any certificate of notification as pledged or held as a poration shall subsequent to the fil- ing of such certificate be sold or re- pledged or otherwise disposed of by the corporation, such corporation shall file a further certificate of mo- tif1cation to that effect, setting forth by subdivision (c) of the foregoing first paragraph.
 The provisions in regard to certifi- cates of notification shall apply to notes or evidences of indebtedness running for periods of twelve months pledging of stocks, bonds Or other evil dences of indebtedness to secure such notes or evidence of indebtedness rum ming for periods of twelve months or less, except that such certificates may be filed within ten days after the fs- the date of such issue.
 Every such railroad ,. corporation shall furnish to the commission, at such time Or times as the commission may require, in addition to its income account, a balanced statement of it's receipts and expenditures on capital account, and of the surplus of the in- come account accruing during the pe- riod covered by such statement, as well as other financial transactions that have taken place during such period, with whom had. whether in cash, in securities, Or in other valu able consideration.
 The commission may also require the carrier to furnish any further statements of fact or evidence that it may deem necessary or appropriate.
 The certificates of notification, and ed to the commission under the act, shall be signed, and verified by the auditor, comptroller, or other acting fiscal head of the carrier. '
 It shall be the duty. of the commits sion to enforce these provisions, and to make public by appropriate means the information received. as, in it's discretion, it may deem proper; and such certificates of notification shall at An times be deemed public records and open to inspection.
 The commission may also require the carrier to compile for the infor- nation of it's shareholders such facts in regard to the financial transactions of the carrier for its fiscal year in such form as the commission may di- rect. The carrier may. be required by order of the commission to disclose every interest of the directors of such carrier in any transaction under in- vestigation. The commission shall have the power to investigate all such transactions and to inquire into the good faith thereof, to examine the books and papers of carriers, con- struction Or other companies Or of firms Or individuals with which the carriers shall have had financial trans actions. for the purpose of enabling it to verify any statements furnished and to examine into the actual cost and value of property acquired by, or services rendered to, such carrier Appropriate penalties, including fine and imprisonment, should be provided fo,, viola ti0y, If fhaco nroxyis;o1r