The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-06-06
To SUPERVISE
THE SECURITIES
GOVERNMENT TAKES CLOS.
Err MANAGEMENT OF
RAILROADS
THE RAYBURN BILL
Which Passed the House Yester-
day Is One of Presidents Anti-
Trust Propositions
THE RAYBURN BILL
(Dy Associated Press.)

Washington, June 5.--Closp rrcula
tion and control of the stocks and
bonds Of railroads by the Interstate
COMMERCE Commission is prnlr.cd by
the Rayburn bill, amending Tho IN
tersfate Commerce Law runsiticrHd Uy
the House as the last imcas.irc Of the
administration antitrust nrorram. Thu
bill makes II unlawful FOR any common
carrier to issue stocks. bo,:.l. note or
other evidences Of indebt etlness with
out the approval Of the Commission
Tho bill Er0adens the powers y. the
Commission To icuu.-e information
from railroads and other COMMON ear
rier and prescribes an elaborate sys-
TEN Of reports. The Commission
would be authorized by the hil Ia re-
qufrc periodical or special reports on
the financial condition Of railroads.
balanced statements of receipt, and
expenditures In relations To "arital ac-
counts. and all other financial trans
actions.
Before issuing stocks or bends, the
bill would require railroads IT, file
with the Commission q certificate uf
notification. showing IN detail the
character Of Tie securities, ;hn pur-
poses for which they are TO he iasuad,
and the disposition 10 be made u! them.
Such certificates the bill makns public
record and open to inspection. Tie
bill would give the Commission wide
authority for the examination of the
books Of railroads and would provide
penalties for the concealing of infor-
nation from the Commission.
Giving the Commission authority 10
supervise issues OF securities the Dill
said:
1T shall be unlawful for any COM
EE,on carrier subject 10 the act to reg
ulate commerce, to issue any capital
stock or certificate OF stock or any
bond or other evidence OF Indebted
ness or to assume any obligation as
lessor, guarantor. or surety for the
securities OF any person. natural or
artificial. even though permitted by
the authority creating the carrier cor
poration. except for some purpose
within Its corporate powers necessary
to the proper performance of its SER
vice for the Public and not tending TO
impair the financial ability of the car
rier to discharge its duty to the public.
1t shall likewise be unlawful to
Issue any such stocks or bonds for the
purposes hercinbefore mentioned or
for any other purpose unless and until
upon application and after investiga-
tion in the premises by the Interstate
Commerce Commission Of thu purpuses :
| and use of the issue and the proceeds
thereof. such issue is approved by said
commission as necessary and appro-
| pirate for the purpose stated. provid-
ed: That nothing herein shall be con-
| strued to imply any guaranty or oh
legation as to such issues en- the part
Of the United States"
The bill exempts from this provision
notes maturing not more: than two
years after their issue, when they do
not aggregate more than five per cent
OF the outstanding obligations Of the
Issuing road
The measure provides that The COM
! mission, In investigating proposed
| stock issues shall hear tho authorities
Of the states through which the rnii-
| road desiring to issue securities pass
es
The bill carries q prohibition, eff
fective two years after the bill becom-
| es law. against one director acting on
| more than one railroad under the ju-
risd:ctton OF the commission. without
the commissions approval. 1t also
would make 1t unlawful for any di-
rector or officer OF u railroad to profit
by the sale or disposition OF stocks
or bonds.