The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-05
SAY RAILROAD
BILL WON'T HOLD
JOuett and BrOwnell Tell
Senators 1t Is In
constitutional.
FULL OF ANTIQUITIES
Would Give Commerce Board
Control Of Whole Trans
portatiOn Map.
AMOUNTS TO CONFISCATION
Louisville and Nashville Off
GER Believes Spite Figured
in Measure.
AMOUNTS TO CONFISCATION

in Measure.
WASHINGTON. June 4.-The Admins
tration bill regulating the Issuance OF
stocks and bonds by railroads was at
tackled savagcly to-day by Erie and Louis
Vile and Nashville officers. who told
Senator Newiands and his committee on
Interstate Commerce Of the Senate that
the passage OF the bill would destroy the
roads. The witnesses we're Edward s.
Jouott, general counsel for the Louis
Vile and Nashville, and vice-President
Brownell OF tho Erie.
Mr.. Jouett was particularly severe on
the search and seizure clause, saying
IL was unconstitutional.
The bill confers on the commission"
said Mr.. Brownell, "the powers and
functions OF the general manager and
directing officers. II would make the
Interstate Commerce Commission one
grand interlocking directorate"
Mr.. Brownell said II was Of vital Inn
portance that roads be not hamperea
in securing necessary capital provided
they could induce capital to invest.
Financing IL Owners Right.
THE raising OF funds honestly and
lawfully should be connded solely to
the judgment OF owners Of railroad prop
erty." said Mr.. Brownell, land not I'M
reasonably be interfered with by the
commission"
"would not the passage OF this bill
turn over to the commission the entire
railroad map OF the country" asked
~ NJ
prevent extension of lines into the ter
ritory now unoccupied?'
ct see no escape from tho conclusion
that this act would make the Interstate
Commerce Commission the general mana
gers and board Of directors OF all the rail-
roads In the United States" replied
Mr. Brownell And Il would do this
without giving the members OF the COM
mission any OF the responsibility such
oficials now have. II would rob the d.
rectors OF power, increase their respon-
sibility and create an interiocking dlrec-
torate Of Government officials with powers
more vast than any one has ever dreamed
Of"
The witness insisted that the bill was
ambiguous In terms. crude. unworkabl,
and not accomplishing the purposes for
which II was designed. The rights of
state and Federal authority. he said, were
not clearly defined.
"Cpon the enforcement Of this bill
depends the expenditure OF billions Of
dollars which must be secured by the
railroads" said Mr. Brownell 1T is
therefore fundamentally important that
a regulatory law like this should be alb
solutely clear and we'll understood"
Authority should he Defined.
"The measure lacks these fundamental
requirements. There should be a clean
cut definition OF authority. Cooperation
between Federal and State authority Is
too unreliable as basis for financial
operations running into billions OF dol
lars"
Senator Lippitt asked TO what extern,
the Interference OF Federal authority In
railroad business in the last decade or 90
had contributed to the difficulties the rail.
roads experience In marketing their securi-
ties.
Mr. Brownell replied that II had con.
trrbuted largely. He admitted that the
growth of Industrial corporations and the
fact that they had been less interfered
with by regulation and statute had i'm
proved the market for their securities and
that competition from that source was q
large factor.
"There are but four OF the so-cailet
anthracite railroads which can now sell
their stocks at par" said Mr. Browrell
naming the Pennsylvania. Reading. lie
high Valley and Delaware and Hudson
He said there was n constant increase II
the price OF what railroads must buy ant
a decrease In what they had to SELL
"Beneath these two millstones." sait
the witness, "the railroads are beinI
ground year after year until their burden
is well nigh uncomfortable"
He asserted further that issues OF bond
by the various roads would be prevented
by the passage OF the law and that tn,
extension of proposed lines would be re
tarded
Protests on the Publicity.
Mr. Jouett attacked the bill largely be
cause II gave the Interstate Commerce
Commission access not only to account
but to all correspondence. even to tina
Of attorneys for railroads.
"Such n provision as this is intoler
able" declared Mr.. Jouett. at Is invasv
OF the right OF privacy and un-Americai
In that II destroys the hitherto conhden
tial relations between attorney and client.
In Mr. Jouett's opinion the Interstat
Commerce Commission has asked for thi
law because OF the difficulty one OF II
agents recently had with Louisville an
Nashville officials In which they refuse
70 deliver certain papers and hnall
elected the Interstate Commerce Commits
sion agent The Federal court for tn
that the railroad was within its rights
refusing the request and the case IL no'
IN the Supreme Court on an appeal take
by the Government.
Mr. Jouett said that the proposed sta,
ute would subject every railroad to III
danger OF having important policies eS
nosed not only by corrupt subordinates {
Federal authority but even by honest of
Gals
,"It would take away our protection
said the witness. for we cannot prote,
important business secrets when they al
not In our own hands"
stevens Attacks BiII In House.
4 speech in opposition to the bill wa
delivered in the House to-day by Repr,
sentative Stevens OF Minnesota, a Repui
-~-n leader, Mr., Stevens accused III
Democrats OF abandoning the doctrine
state rights and attacked the admin,
traton bill giving the Interstate Con
merce Commission jurisdiction over II
issuance OF railway stocks and bono
o. unconstitutional.
Mr., Stevens proposed as n remedy Z,
the present railroad situation a law III,
would enable interstate railways to II
corporate under Federal statutes.
SAID that the law now proposal wou
greatly injure the railways ny .interrerir
with growth and development that
would swamp the Interstate CONNER,
commission with work and that II wou
CONFER no benefit on the people.