The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-03
CLEMENTS FOR FULL
RAILROAD PUBLICITY
Interstate Commerce Commits
siOner Wishes Financing
to Be in the Open.
WANTS SHARP WATCHING
lie Expresses Dread Of Govern
ment Observation-Disclosures
Attacks Rayburn Bill.

WASHINGTON, June 2.--Absolute pub
llcity OF railroad management was ad-
vocated by Judson e. Clements OF the
Interstate Commerce Commission at a
hearing held by the Senate Committee on
Interstate Commerce to-day on the Ray
burn bill for Federal Issuance OF rail-
road securities.
Anticipating the action OF the House,
before which the Rayburn bill is pend
ing, the commission has recommended a
number Of important amendments to the
bill. and 1t was in explanation OF these
amendments that Mr.. Clements made his
statement.
representing the railroads at the hear
ing were Judge Robert y. Lovett prosl-
dent OF the Union Pacific; A. Ii. Harris
general counsel for the New York Cen
trail; J. Y. Blair OF the Southern Pacific
and Edward 5. Jouett general counsel
for the Louisville and Nashville.
The proposed law regulating the issu-
ance OF railroad securities should pre-
vent the railroads from keeping any
memorandum of their affairs" said Com
missioner Clements. That this is neces-
sary was shown in our inves tigation a,
Chicago In 1902. when railroad and traffic
managers freely admitted they had paid
rebates and In other ways violated the
law. but had destroyed their records oil
such transactions"
senator Lippitt, a member of the COM
mittee. suggested there should be no OBJ
lection to permitting the railroads to
keep duplicate accounts, which the pro-
posed bill prohibited.
"a Dangerous Practice"
Commissioner Clements said this was a
I IL.
temptation to conceal matters that the
public should know.
Senator Brandegee asked Commissioners
Clements II he did not believe the rail
roads were being so closely supervised
by the Department that II might ulti-
mately lead to Government ownership OF
roads.
ownership may come" said Commissi oner
Clements, land hope It will not come.
| believe, however. that the public Is
honest and fair minded enough to con-
cede that the roads are entitled to rea.
sonable profits and that the people vii,
he willing to pay the rates that will yield
those profits without forcing the Govern
meut to take over the roads.
Senator Brandegee suggested that tn
tendency of increasing Federal supervision
was forcing the Government into the pos!
ton OF controlling all the income OF road
without assuming any responsibility, IL
intimated that capltdl "oulh uitlinatel.
refuse to invest In railroad securities un
der these circumstances. COMMISSIONS
Clements said he did not beileNe I'M
Wound De true , 49,,
What the pupic demanus ana mas -,
riGht 10 nave saln the Ioiil'nlssioi,et.
knowiedse thht roaus assul,,e a. w. '',.
vice, not of exploiting the road for purel!
hay ~ a
nhai.Iai pu ii,, S.. ha r.aav 90 ,r,oS
t,iiS '',e! W., :, "'""''
'ie'' ''O''
c,,. 1n.,.,ce
The Commissioners cited the instance
/ the requirement by the Atlantic coas
Line OF the Louisville ana NashNiiie som
years ago. rms transac'loil, ne charsec
was executed by d. T. Morsan mercy 10
the purpose OF eiiftliha.iIs JIM " 80
ana Others ba,es ha'' a.d ~ VI. -