Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-12-11
COMMISSION THINKS
FEDERAL CONTROL
IMPOSSIBLE At
THIS time
Railroad Securities Commis-
sion, Headed by President
of Yale, Makes Report.
ENFORCED PUBLICITY
rs EFFECTIVE WEAPON


sny rvs.ias Herald a. =. LEASED wirs,
washington, Dec. 1.-THE Railroad
Securities commission. headed ny
President Arthur r. Hadley OF Yale.
has reported that Il would be prac-
tIcaily impossible at this time 10
place issues OF railroad securities un-
der federal control. The commission
recommends that enforced publicity
for all railroad financing Ia the most
effective weapon against stock water.
ing which the government has at rs
oenmsnd.
"A distinguished group of invessi-
gntors was named by President Taft
ltn eo.operata with Professor dadley.
They we're Frederick NJ Juds0n OF st.
Louis; Frederick Strauss OF New
York; Walter l. Fisher. secretary OF
the interior. and flaithasar H. Meyer,
member Of the Interstate commerce
commission"
The commlsslon was created IN 1910
when the senate refused TO accept a
house amendment 10 the pending raii-
road blli. providing that ali future Is
sues el stocks and railroad securities
be placed under the control OF the IN
tefafHte commerce commission. Many
OF the senate Democrats opposed II az
an invasion of states rights. Presi-
dent Taft al the time told Republican
leaders she party was committed TO
such a measure. but when u appeared
Is.ah h...I4.4 -. ar
agreed To have the clause eliminated.
with the understanding that a com.
mission 10 study the subject would b-
allowed This was done and the COM
mission began work In the autumn OF
! 1910 Public hearings we're held and
Chairman Hadley studied the problem
abroad.
\ The cammlssion's report Ia distinck-
~ adverse 20 the legislation proposed
In the railroad bill.
President Taft In transmitting the
report TO congrcae today. declared
that he heartily concurred In the
recommendations
The commissions principal conclu.
sions are:
That any attempt by congress to
adopt the policy OF federal regulation
10 the exclusion Of state regulation
would he premature.
That for the present, state auth
critics should make a concerted ef-
fort 20 harm0niEe existing require
men,s.
That congress should prepare for
the future by giving consideration 10
a federal Incorporation act watch
\ would permit Interstate railroads to
exchange their state charters for ma
fiOnal ones.
The commission takea the grounc
THAT constitutional questions invoiv-
ing the scope amt extent os federal au-
thoFily are unsettled and will remain
50 for sometimes: ana that while such
la condition exists. 10 superimp04e
federal regulation upon state reguia-
tion would add 20 the conflicts ana
lcomplexitios, which tn the public IN.
terest should rather he diminished
than Increased.
Unless the constitutional power OF
congress 10 regulate securities OF In
Iterslate railroads is definitely estab-
liahed as being exclusive OF state con-
troi. either the federal government
land the states win tome 10 a general
understanding as to the principles TO
be adopted In the control OF security
issues, or the railroad systems will
be- given the opportunity TO exchange
their state charters for federal ones
says the report.
"Until such exclusive jurisdiction
can be established tho creation OF q
separate administrative body aub-
iectlnE the railroads 10 new sys-
tenn Of concurrent supervision. In aa-
dstion TO the many old ones which
now exist does not seem Just. cxpedi-
sns or economical,
For the present the commission
recommends that complete publicity
be required 10 surround all issues
Of securities and that any Interstate
railroad issuing stocks and bonds be
Required TO furnish 10 the Interstate
commerce commission a fun stnte-
ment of the details OF the issue, the
purposes for which the proceeds are
TO be used and an accounting for the
expendisures of such proceeds
Accurate knowledge % the facts
Surrounding the issue OF securities and
tho expenditure Of tho proceeds IA
lihe matter 0f most Importance, the
commission says III ~ the one thing
upon which the federal government
lcan effectively insist today Il II the
! fundamental shins which must serve
an basis for whatever regulation
may be desirable IN the future.
m fun publicity be given We shall
also Lessen the fraudulent creation
lof debt. il IN the degree OF public
llty rather than the siringeney Of the
law which gives 40 the people any
lrcal protection. stringent law IN.
adequately enforced and secretly
cvaded ls the worst thing that can
be possibly offered the public, be-
cause u gives color 10 claims which
have NO foundation IN fact"
In determining the physical value
of railroads N relation 10 their se.
cunltlcs now OUTSTANDING the com.
n,laalnn uufn aside M entsroig out al