The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-04
Might bankrupt Roads.


'The Union Pacific road now has about
$3O.O0O.UO0 In undivided surplus" said
Judge Lovett. chat We might wish TO use
for additions and bctternents without is
suing bonds That fund must be replaced,
hut we could not under this proposed law
Issue bonds to replace that fund. because
the commission could not approve the ap-
plication II this bill were TO be enacted
a great many systems might become
bankrupt and so into the hands Of re-
ceivers because they could not finance
themsclves'
A. H. Harris Of the New York Central
Lines told the committee that his per.
sonal opinion was that Federal incorpo-
ration OF railroads was desirable and that
II would be the logical outcome of pres
ent tendencies
''Ths would place Congress in control
OF its creature" said Mr.. Harris, and
would do away with the present incon-
gruous situation. 1t Is unreasonable TO
tho railroads of the country TO be char.
cred by the States and Congress given
the power TO control them. There can
be no partnership between States an /
tho slightest doubt that Congress ha.
the power II It chooses to exercise It,
and that choice should be made"
Senator Brandegee asked Mr.. Harris
II he believed there would be much fric-
ton to the railroads by such transfer.
Il do not think So" replied Mr.. Har-
ris, land believe many OF the gre.
systems would welcome such legislation
and voluntarily apply for Federal char
terra"
Passing to provisions of the interstate
commerce commission bill TO regulat.
railroad securities. Mr.. Harris said the
commission had no idea OF the magn.t.
OF the task II Is seeking to impose
He referred to the listing OF railroad
securities on the New York Stock Ex-
change, which amounted TO over $4,000
100000. These did not include other ex-
changes where such securities were listed
The Interstate Commerce Commission
already complains that II is overworked,' -
said MIR. Harris. 1T would add unknown
burdens OF tremendous proportions by hav.
ing to approve issues of railroad securi-
ties. Delay in approval would greatly
hamper the roads"
Mr.. Harris then cited an instance las;
spring when the New York Central con
sidereh the issuance of $4,000, 900 OF
bonds 10 take up notes that were due. The
approval of the New York and New Jers y
railros d commissions was necessary This
was s ,cured finally. but only within two
days OF the time The notes in question had
10 be taken up and the bonds could not
be marketed. This delay would be In.
creased, he said.
Cites Grand Central Terminal.
Referring to provision TO which Judge
Lovett objected which made the approval
of bond issues contlngen; on purposes
necessary in the public interest,"" Mr.
Harris said this would undoubtedly Grip
pie the roads. Illustrations he cited wers
the New York Central Terminal and yard,
in the heart of New York city.
I'VE decided 10 put our yards unde'
ground" said Mr. Harris, land use the sur
face rights for the erection of bushes,
buildings which We could rent and so hell
maintain the enormous expense We bull
the Bi.tmore Hoel and the Manufacturers
BuluiLg and have others In contemplation
but II we had been obliged to get the con
sent of Federal authority 10 issue thes'
bonds for this purpose the language tC
which l have referred would have pre-
vented their approval"
Mr.. Harris declared that the proposed
law would leave the roads with added re
sponsibilty but deprive them OF power.
what this measure needs is though
and more thought" said Mr.. Harris
while there may be some good things II
the bill, II is full OF crudities. the effect o
which would be to put the roads In I
straittacket."
At the conclusion OF the hearing Chair
man Newlands suggested that the railroad
attorneys draft a bill sucli as they believ
should be passed. and tho railroad mel
agreed to submit bill to the committee.
1t - expected that the hearing will b
concluded tomorrow mornirg when A.
Thorn OF the Southern Railway AM
George +. Brownell, president Of the Erie
will testify.