Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-08
MOST DRASTIC BILL
AIMED At RAILWAYS
Third of Proposed Anti Trust
Measures Has the Sharp
est "Teeth."
HOUSE DEMOCRATS PLAN
PROGRAM TUESDAY NIGHT
Only Projected Legislation That Has
Aroused Opposition of Minority
to Any Extent.

j. mocrats in the House viii attend a
gram for the antitrust legislation
which received its final touches in com
nittee yesterday when a drastic railroad
capitalization bill was reported from the
interstate and foreign commerce com
mittee. This is the third of the anti
trust subjects 10 be placed before the
House In the form OF proposed lesisla-
ton. The others are the interstate trade
commission bill and the Clayton anti
trust bill.
OF the trio. the railway capitalization
hill has the largest and sharpest teeth. :"
and It is the only trust bill against
which republican criticism has been d.
rected to any extent
Members of the minority said today
hat the bill reported yesterday would
dissolve every railroad combination, good
% the most disgruntled members de-
cared that II would act in most de-
pressing manner on transportation the
country over.
Three Main Features.
The bill has three main features,
namely:
To require railroads before issuing
stocks and bonds to obtain authority for
such issues from the interstate commerce
commission.
To require full publicity. through the
commission. of all facts bearing on the
issue of railroad securities
To make unlawful the holding of po-
sittons on more than one road
The stock and bond restriction is safe
guarded by allowing courts to enjoin is
sues of securities which do not come up
TO the requirements of the commission.
The object of the federal supervision is
70 see that every issue of securities Is for
legitimate. sound railroading purpose
and not for stock manipulation and rail-
road wrecking''
the committee. wrote the report, which is
in part a s follows:
Report of Committee.
The provisions of the bill can be en-
forced effectively through two provisions
made. One is by injunction against un-
lawful conduct and the other is by pun
ishment In the courts of persons who vto-
late the law. and as to those persons who
practice wholesale speculations and ma
nipulations in stocks and bonds known
in the past as magnificent wreckers of
railroad systems. We have left the pun
ishment in the discretion of the courts,
as II is thought proper TO leave to the in
genuity OF the courts the fun limit of h,-
man ingenuity in inficting punishment
on those who injure commerce and the
prosperity of the country by Gripping the
great systems of transportation.
As your committee understood that
The judiciary committee was not dealing
With the directorates of railroad com
panies, Your committee has deemed il
proper TO include q provision preventing
common directorates and management,
except when. under peculiar conditions
rendering il necessary. the interstate
commerce commission may sanction such
duplicate office holding.
In connection with the provision to
punish violations of that law we propose
pains and penalties upon officers who
issue stocks and bonds without authority
II law. or who violate the proposed law
against applying the proceeds of stocks
and bonds to improper purposes"