New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-05-08
Democratic Committees
Plan Regarded as Menace
to Transportation.
GREAT POWERS FOR
COMMERCE BOARD
Would Give Control Over Stock
and Bond Issue and
DirectOrates.

Washington. May IA drastic Dill
giving the Interstate Commerce commas
.,o, conp,ete control over the stock ana
ho,d Issues OF railroads and prohibiting
,n,.r,ocklnr directorates among common
carriers was reported TO the HOUSE "
dsy b. the Committee on Interstate anu
Foreign Commerce
Penublican critics OF the measure, al
ter an examipation OF its radical pro-
nosals. expressed the fear that us enact
nent into law would injuriousiy ols.uro
the transportation business
The bill embraces primarily the pro-
visions OF measures introduced by Repre-
sentatives Sims and Rayburn, radicai
Democratic members Of the House |oh'-
mittee 1t provides for:
Advance authority from the interstate
Commerce Commission before any rail-
road engaged IN interstate commerce IS
sues stocks and 5o"ds.
No p.rson. except by specific permits
sion OF the commission. to be oirec-
TOR or officer in two railroads. This sec
tion stimulates that Unless the pre-
vious auproval of the Interstate COM
merce commission shall have been Sc
cured IL shall be unlawful for any per-
son to hold the position OF officer or Ill
rector of more than one carrier subject
TO the act to regulate commerce
Blow at Railroads.
Under this provision, 1T IL contendeo
by critics Of the bill. the commission
may require the dissolution or pracu-
callv every system which has more than
one line. the alternative being the en-
plovment Of many officers TO manage
practically the same property. Ohicers
of the New York Central, for instance
might he required To cease any super
vision over it's subsidiaries
The principal requirement OF the sec
ton relating 10 federal control OF the Is
suance of railway securities is that no
railway corporation may issue any cap
ital stock or certificate OF stock, or any
bond or other evidence of Indebtedness
or assume any other obligation. "un-
less and until. upon application ana
after investigation by the Interstate
Commerce Commission OF the purposes
and uses Of the issue, and the proceeds
thereof. such Issue is approved by said
commission as necessary and appropri-
ate for the purposes stated in the ap-
plication.'
There is one exception. Railway COM
panies are to be permitted to issue one
year notes. provided the Issue does not
exceed per cent of the outstanding
stock and bond obligations OF the car
rlers.
The publicity features OF the admins
tratlon bill are patterned after the Hadley
commission plan. The commission is en-
powered 10 demand full details OF all pro-
posed issues. and in their regular reports
TO the commission the railroads are re-
auired TO include all Information regard
ing the issuance OF stocks. bonds and
other certificates OF Indebtedness
Chairman Adamson introduced resolu-
ton providing for a special rule to make
the bill privileged The Democrats are
to meet in caucus Tuesday night to agree
upon the speeding up OF the antitrust
programme, including the bill reported TO-
day. the Judiciary Committee bill and the
measure creating an interstate trade COM
mission. Mr. Underwood said the eau
Gus would not be called TO approve OF the
bills as party measures. but TO bind the
Democrats to expedite their passage by
special rules