The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-17
Trade Commission Measure to
Be Redrafted and Other
Changes Coming.
BIG ACTION FOR RAILROADS
They May Be Relieved by Con.
gress From Obnoxious State
Regulation Laws.

merce to-day. Other changes will follow
The change now ordered affects the bill
proposing the creation Of an interstate
trads commission and amounts to . de-
cision TO redraft that measure
Among other things the change Limits
the activities Of the commission. especially
as regards publicity, to corporations hav-
ing a gross Of 100000 or more a year
Another change under conside ration
Is of great Importance TO the railroads
OF the country. II has to do with the
proposed bill giving the Interstate Com
merce Commission supervision over the
issuance of stock and bonds b. inter-
state carriers.
The railway capitalization bill. As ten
tatively agreed upon by the leaders, pro-
vided that Federal supervision should be
only supplemental TO such regulation as t,
prescribed by the States.
A suggestion is under serious considera-
ton that the principle laid down by tho
United States Supreme Court in the Min
nesota rate case should be Incorporated
In the present bill This principle was To
the effect that when Federal and State
authority conflict on questions affecting
Interstate commerce Federal authority
shall be supreme II asserted by Congress.
II this principle should be incorporated
in the pending bill so far as radical regu-
lation OF tho issuing OF stocks and bonds
railroads would at once be relieved Of
the Inany harasslng and contradictory
laws on this subject that have been
passed by the States.
Furthermore, II would be long step
toward the assertion by Congress OF the
power which the Supreme Court has de-
clared to be lodged In the Federal 0ov-
eminent. OF making tho Washington au-
thority supreme over the State LeGisiA-
lures and state railway commissions In
the matter Of rate making Whenever there
should be . conflict Of authority.
Jsstics AagAsshs Dssssees.
- Justice Hughes in hts we'll knpwn Nlfas
pesota rate decision said that the court
had decided In favor of tho states In that
case not because Congress lacks the
power. but BECAUSE 1t had failed to ex-
erclse this power In that direction.
This was the feature OF the decision
that the railroads regarded with great
favor, and It Is proposed now TO have
Congress take one step in the direction OF
relieving the railroads from the hodge,
podxe OF state laws. This issue is GER
tain to raise opposition from the States
and will undoubtedly be stubbornly con-
tested.
More talk was heard among Demo-
cratic leaders to-day in favor OF redraft-
ing the Administrations entire antitrust
programme. The determination to re-
write the trade commission bill and the
agitation for change IN the railway
Capitalization show the way the wind 10
blowing.
The action Of the committee In throw
ing the present trade commission bill into
the discard was prompted by general dis
satisfaction with the measure. Many Of
the witnesses that have appeared have
urged amendments designed to give the
trade commission as complete supervision
over Industrial corporations ~ the Inter-
state Commerce Commission exercises over
the railroads.
This idea Is repugnant to most members
OF the committee. Accordingly. they de-
cided to draft a bill of their own. and
once they make a report they will resist
any effort that may be made to broaden
or limit the scope Of the measure.
The new bill will be given to the public
this week. II viii authorize the COM
mission to make Investigations either OH
It's motion or ut the instance Of the De-
partment Of Justice. Full publicity OF
results reached In the inquiries by the
commission will he authorised.
The commission will receive the further
power OF making inquiries into industrial
conditions and to report to Congress from
time to time what changes. II any. It be-
lieves should be made in the antitrust
laws.
II will also be authorised TO assist the
Department Of Justice In carrying out de-
crees Of dissolution handed down by the
Supreme Court The commission will get
no authority beyond that
Tho Poist 81 Attack.
The bill In its present form has been
attacked on constitutional grounds. This
objection was made against the provision
that authorised the commission to require
reports from corporations, making no dis
tinct,on between State corporations and
those that do business between tie States.
This provision will be modified. The vids
powers Of search and ssisurs granted BY
the present bill will b modified.
The work Of redrafting the trade com.
mission bill has been intrusted to . SUBJ
committee, composed Of C0v1nston OF
Maryland. Sims Of Tennessee and raicott
Of New York. Democrats, and Stevens OF
Minnesota and Koch Of wisconsin. Re-
publicaus. With the exception oe' Mr..
Sims, all these members srs regarded q
conservatives.
Hearings on the railway capitalization
bill will begin before the Intsrstats Gem
mercs Committee on "wednesday. Discus
slons In committee on this proposition
show strong sentiment In favor Of asaert-
ins Federal authority ~ supreme In deal
Ing With railway eapttalisatioa.
cuDA. YIOnIpA. ClARL1gION, AUGUSTA
~ liz All 6SASi WfnatSla VlUAeHI