The sun., 1916-11-26
lE WOULD DIMINISH
( POWER OF 1. c. BOARD
TNors Legalizing Of Pool
: Ing and Supervision Of
Stock Issues.

- N"N ~
41Dion with a new d~istribuflon It the
pswsss It now exercises - the pro-
Uamms for legislative relief proVosed by
- railroads. Alfred r. Th0m, counsel
~ the Southern Railway and spokes-
unn for the Hallway Executives A.
vsnvry Committee. closed tho prsitminary
statement on behalf Of the railroad side
0ofDre the Newlands Joint Committee of
Csngress to-day.
H. Thorn has used three days In the
vUselminary statement Of the ase. He
W0 - eross-exxmined by the commit
- bssinnine Monday. rers will be
- counsel In tho m~vsseigatien-
AZ the conclusion Of hts statement Mr..
3hom Submitted . letter from Richard
oeusy Of Boston. who wrote that he was
o1Aa b sdd . word In writing to the
esasRal propaganda for relief legislation
y Improve the transportation facilities
q the country. but did not feel physi-
sally able to come before the committee
~ testify personally.
oa0ests ReOrGanisation Plaa.
III. Olney suggested q plan for bring
~ tf,e railroads OF the country from
uudH State control and into Federal
0onfrol through a reorganization COM
miteee to whom title would be passed
" shareholders and vino wuuld tissue
doDsk In lieu of that now neld and upon
SUms that would protect present pri-
,vute holdings fully and provide for an
1Dus Of additional securities to improve
- service.
Mr.. Them paid q high compliment 70
-. Olney. but said that later he would
0QggVst q plan for getting from under
oats control and Into Federal control
1T would he simpler than AIR. Olnsy'e.
In tho plan Of legislation ~pssseseed
~ the railroads by Mr.. Thorn II is
Dg0vided that the present Interstate
Commerce Commission shall have its
savers diminished and that the COM
Weaion he directed by law to take
Mto consideration certain facts In any
oD~vsstigation into a proposal to readjust
o0A
1sgisaal n. n. CeaaIssiSas.
The railroad plan prpvtdes for IN
00asss Of salaries for members Of the
eonmisslon and longer tenure and for
an entire new body to be known a.
the Railway Commission TO deal with
eUme OF the larger questions affecting
the railroads. II also provides for re-
1t0na1 commissions to be made up OF
gssmbers to be chosen from the locali-
ktos they are expected to serve. whose
1AdinGs shall not have any force until
NY have been approved by the Inter
toeate Commerce Commission
II: These regional commissioners are ex.
Dueted to take the place Of the force
20 fisld examiners now sent out by the
Interstate Commerce Commission tc
0e0ld hearings OF complaints. They
beuh exercise about the same functior
that Of Especial masters in chancery.'
0r. Thorn explained-and would DO bet
ter ftted to pass on the matters be
csusc Of their knowledge Of local need
md conditions. They would be ap
Dstnted by me President a be con
Armed by the Senate.
legislative Relief PYsUPanAe.
TIE programme for legislative relief sivel
~ Mr.. Thorn also included supervision
o. stock issues by the Federal Govern
mont. Federal Incorporation. power giveI
to tho Interstate Commerce Commission
to hx minimum as we'll a. maximum
rates, a limit Of time during which tn
commission may suspend a proposed rat
for which the carrier might file a TART
providing sixty days A. the limit an,
requiring the commission to disapprov
the rate instead Of making approval IN
preliminary to its going into effec,
otherwise the rate to become ~effectiv
Automatically.
He also asked for legislation to legal
- pooling and that the law recogniz
that In application of the provisions q
the Clayton antitrust act the condition
which might constitute a restraint @
trade II created by ordinary commercis
business do not necessarily mean injur
- the public II created by the railroads.
Defends Ira combinations.
Mr.. Thorn explained that combine
lions OF carriers to defeat competitio
were often In the public interest becaus
they resulted In better facilities ia
commerce, while In ordinary busine
combinations that destroy competitlo
ere burdensome to the public.
The speaker said he would omit "a
tho present any suggestions as to no
Congress should deal with the labc
Rroblem In the interest of transports
ten.
W had agreed on the things I ha,
cot forth here before the labor situatio
became a menace to che country I'd,
Mr.. Thorn, "When we prepared for IN
soaring We did not expect to touc
uDon w."
Mr.. Thorn told the joint commit,
that Federal incorporation would ha
70 Be compulsory beca use when the a,
preme Court comes to pass on 1t Il
power for Federal Incorporation will
taseA on the Governments power to 70
Jlnta and regulation TO he effective mil