The Birmingham age-herald., 1914-05-12
LEADING RAILROADS SHARPLY CRITICIZE ANTITRUST BILLS Protest Vigorously Against Provision Against Inter- locking DirectOrates APPEAR BEFORE M
 l. C. c. COMMITTEE 150,000 Miles of Railroads Repre- sented by Witnesses-Trumbull
 Says Roads Are Anxious for
 l. C. c. Control

Washington, May 11.-Administration antitrust bills framed by committees of both houses of Congress were sharply criticized today before the Senate inter- state commerce committee by Represen- tatives of some of the leading railroads of the country. There were few features of the bills which were objected to, but the railroad men protested most vigor- ously against the provisions aimed at in- terlocking directorates and stock owner ship by one common carrier of another, and against the proposed delegation of supervisory power to the interstate com merce commission of future issues of se- curity.
 The witnesses, who told the committee they represented about 10000 miles of railroad, were Judge Robert Scott Lovett, chairman of the Union Pacific board; Samuel Rea, president of the Pennsyl- vania; Frank Trumbull, chairman of the boards of the Chesapeake and Ohio and Missouri, Kansas and Texas railroads and A. Thom, general counsel in Washington of the Southern. The argu- ments differed in detail, but generally were much alike
 Tt seems to me-" said MT. Trumbull. the concluding witness, that you are burning down the barn to get a few rats"
 If you tell us how to get the rats" replied Senator Cummins, we'll be glad to do it.'
 MT. Trumbull declared the railroads were anxious to conform to the law, but that they were desirous of seeing the regulatory powers over them confined to national commission like the interstate commerce commission, or left entirely to etate commissions.
 rI,a ''have been working along national lines, but the legislation has been along prov incial lines"
 He added that the railroads had lost more than s100,O00,00O in the last nine months.
 But said Senator Cummins many other corporations have losr proportion- ately more than ths'
 Yes" replied the witness. That may be right, but that dovsnt give us any credit,
 Demand for Legislation
 Both Judge Lovett and Mir. Thom agreed that there was a genral demand throughout the country for legislation in some such form as was proposed They agreed also, however. that the methods suggested in the Senate bill for reaching 1nterlocking directorates and stock owner- ship of competitive roads were not proper Judge Lovett declared that the Senate Dill aimed to make the corporation re- sponsibla for preventing interloeking and suggested that Congress should, instead make the individual director responsible He coincided with MT. Thoms view that as the bill stands railroad might de- eide to go out of interstate commerce in- stead of giving up interlocking directors.
 Upon the proposed law Judge Iovett said the minority interest in a road, if dissatisfied. might elect a director who was forbidden by this act and put railroad out of business" Judge Lovett attacked the House bill which would give the interstate commerce commission sup ervision over security issues If there were no other consideration, said he, it should be sufficient to state that it would be physically impossible for the present commission or one with 90 members to exercise this power if it were done in the proper way
 Object Strongly
 MT. Trumbull and Mir Thom objected Strongly to the prohibition against com mon directors on railroads and financial institutions which have fiscal relations with such roads. Both asserted that European investors look to these bankers when making investments in American roads. Mir. Trumbull said that the prin- ciple of inducing European capital to in- vest in America was indorsed in Congress when the income tax law was passed in such form so as to remove from taxation interest on American securities held by nonresident foreigner.
 The committee expects to hold hear fngs tomorrow and Wednesday and prob- ably will begin consideration of the bill 1t is to report to the Senate later in the week.