Omaha daily bee., 1911-12-12
AGAINST FEDERAL CONTROL
Railroad Securities Commission
Makes Its Report.
SUGGESTION is NOT FEASIBLE
Enforced Publicity OF Railroad Fi-
nnnces and Further LeEIsla-
tiOn by the states is
Recommended.

WASHINGTON, Dec. 1.-THE railroad
securities commission. headed by Presl-
dent Arthur Il. Haeley OF Yale, has re-
ported that It would be practically I'm
possible at this time TO place iasuss Of
railroad securities under federal con-
troll. A distinguished group OF investi-
gators was named by President raft to
cooperate with Prof. Hadley. They were
Frederick N. Judson Of IT Louis, Fred
erlck Strauss Of New York. Walter Ia
Fisher, secretary OF the interior, and
Balthaser II. Meyer member Of the
Interstate Commerce commplssion. The
commission recommends that enforced
publicity for all railroad financing is the
most effective weapon against stock
watering which the government has at
it's command.
The commlsslon was created in 1910
WREN the senate refused to accept a
house amendment to the pending railroad
bill. providing that all future issues OF
stocks OF railroad securities be placed
under the control Of the Interstate Com
merce commission. Many Of the senate
democrats opposed il as an invasion OF
states rights. President Taft at the
time told republican leaders the party
was committed to such measure, but
when 1t appeared impossible to lpass IL
the president agreed 10 have the clause
eliminated. with the understanding that
the commission TO study the subject
would be allowed. This was done and
the commission began work in the
autumn OF 1910. Public hearings were
held and Chairman Hadiey studied the
problem abroad.
The commissions report is distinctly
adverse TO the legislation proposed In
tho railroad bill.
President Taft In transmitting the re-
port 70 congress today, declared that he
heartily concurred In the recommended
tion.
The commissions principal conclusions
are.
That any attempt by congress 70 adopt
the policy OF federal regulation to the
exclusion OF state regulation would be
premature.
That for the present. state authorities
should make a concerted effort to har-
monize existing requirements.
That congress should prepare for the
future by giving consideration to a fed
eral Incorporation act which would per
mt AANNaoAeNe AbiAihAho ~ NANuhukE
their state charters for national ones.
FaVOrs Process of Evolution.
The commission takes the ground that
constitutional questions involving the
scope and extent OF federal authority are
unsettled and will remain so for some
time; ana that while such condition
exists To superimpose federal regulation
upon state regulation would add TO the
conflicts and complexities. which in the
public interest should rather he dimn-
ished than increased.
Unless the constitutional power OF con-
gTess TO regulate securities OF Interstate
railroads is definitely established as be-
Ing exclusive OF state control. either the
FEDERAL government and the state will
come 10 a general understanding as to
the principles to be adopted I'm the con
troll OF security issues, or the railroad
systems will be given the opportunity
to exchange their state charters for fed
eral ones" says the report.
Until such exclusive jurisdiction can
be established the creation OF a separate
administrative body subjectng the rail-
roads to a new system OF concurrent su-
perylsion, In addition to the many old
ones which now exist does not seem
just, expedient or economical"
For the present the commission recon-
(Confinued IN Gecond pogaA