Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-12-27
PREPARE LAW TO
SUPERVISE ROADS
Several Members of Congress
Have Drafted Measures for
that Purpose.

Washington, Dec. 27.-With many
of the most important railroad corpor-
ations acQuiescing in the proposition
congress is waking up 60 the fact that
this is the psychological moment Tor
the enactment of legislation providing
government supervision of railway
financing and operation.
The advocates of such an enlarge
ment of the authority OF the interstate
commerce commission were encouraG-
ed today by a perusal of the stcte-
ments of railroad officials approving
this suggestion. The presentation or
tie views of the carriers has given
impetus to the movement in congress
for the passage of this legislation and
an effort is to be made TO obtain con-
sideration of the question soon after
the holiday recess.
One suggestion which the demo
cratic leaders in the house have under
Amusement is that bill be passed
granting a per cent increase of rates
but further providing that such ad-
va may be enjoyed only by those
railroads accepting government super
vision OF their. financing. This plan
of coupling such legislation with a
freight rate advance has been sug-
gosted as = means of heading off rail
road opposition to regulation of So
Curity issues or the ground that il IL
unconstitutional. The railroad secur-
tiles commission appointed by eX-
President Taft expressed doubts Of its
COnstitutiOnality.
This proposal is abhorrent to the
members of the interstate commerce
commission who brand il is propos-
ed purchase of a concession by the
railroads. They regard it as bargain
that is not ethical and contend that
the Justification of Il freight rate ad-
vance should be decided on its merits.
Many members of congress share this
view. contending that by authorizing
higher freight charges in return for
acquiescenCe in government regulation
of securities congress merely would be
buying what il has a right to require
of the railroads.
The principal bills providing for gov
eminent supervision of RAILROAD financ-
ing which are pending in congress
are:
BY Senator Lewis-Ail corporations
doing an interstate business may issue
stocks and bonds and may consolidate
only with the permission of the inter
state commerce commission.
BY Representative Adamson, chair
man house interstate commerce com
mittee Watered securities of rail
roads shall be retired on order of the
commission, and no increases of in
debtedness may be incurred without
authority OF that body; interlocking
directories also prohibited
BY Representative Sims Railroad
securities for other purposes than ex-
tensions and improvements shall not
be issued except with the approval er
the interstate commerce commission.
The house committee will hold hear
ings on the pending bill shortly after
congress reassembles. In addition TO
the advocates of the legislation and
the railroad officials, the members OF
the interstate commerce commission
will be invited to appear before the
committee.
Weary All Ol tIt UntHlDtTS tI inc
commission favor supervision OF rail
road financing. Commissioner Meyer.
however, does not go as far in this
direction as some of his colleagues.
His views are represented by the re-
port made by the Hadiey railroad Sc
curities commission. of which he was
a member. He believes in the utmost
publicity of railroad financing. incIud.
ing valuation of property and the is
sues Of securities and their purposes.
but would not require the commission
to approve the financial policies Of the
carriers.
Those who believe government super.
vision of railroad finances should not
20 further than eXacting the utmost
publicity contend there is grave dan
ger in requiring the commission to
sanction stock and bond issues Fu-
ture issues OF securities are so closely
connected with past issues that the
commission. in approving Increased
might be placed in the
position Of sanctioaing much reckless
OF the past The action Of
the. commission in this respect. It is
pointed ont, would become involved in
much litigation growing out Of railway
in the past.