New-York tribune., 1919-06-03


transportation Of property and the
supply, movement and operation Of
trains In case Of shortage Of equip
ment, congestion of traffic or other
emergency requiring immediate action
in any section Of the country, the COM
mission is given authority to suspend
the operation Of all rates and to direct
the interchange and use of locomotives,
cars and other vehicles without regard
to ownership. 1t is also authorized to
require joint or common use of term
inals upon such just and reasonable
terms as it may prescribe.
ut can also give directions for
preference or priority in transporta-
tlon embargoes or movement of traffic
under permits at such times and for
such periods as it may determine.
I'm time of war or threatened war
the President may certify to the COM
mission that it is essential to the ma
tional defence and security that GER
tain traffic shall have preference or
priority, and the commission shall see
that this is done.
"ln short, it made the duty of every
carrier by railroad, subject to the act
to regulate commerce, TO furnish safe
and adequate car SERVICE
"Fourth-No additions or extensions
or construction Of new lines without
the consent Of the commission:
"One of the evils of railroad con-
struction in the past has been the con-
struction of parallel or unwarranted
lines, resulting in weak, Improbable
and speculative roads. The bill re-
quires that before there can be any
extension or construction of new lines
or acquisition or operation of any
line a certificate of convenience and
necessity must first be secured from
the commission, following the legisla-
tion Of New York, Wisconsin and other
states. Notice Of application for such
certificate must be served upon parties
in interest and upon the state commits
sion directly concerned. The commits
sion may prescribe such limitations
upon the issuance of the certificate as
public convenience and necessity may
require. No abandonment of line or
any part thereof shall be had save
under a like certificate.
"Fifth-The transmission of intelli-
gence' as effected by wire or wireless
systems is to be placed more fully un-
der the mmission. The interstate
commerce act made telegraph. tee-
phone and cable companies engaged in
Interstate and foreign commerce com
mon carriers and required them to file
annual reports, impose just and reason
able charges and classiticatons, 1ut
omitted to give the commission author
ity for complete regulation. The bill
seeks to do this, except as to business
wholly lntrastate. To this end the COM
mission can order extension of lines
If in the public interest, prohibit re-
bates and determinations, require the
filing for publication of rates and
schedules, prohibit the doing of bust
ness or the collection Of charges unless
and until such publication has been
made, and require transmission to be
continuous from place of origin to des-
tnation.
"Sixth - Conflicts Hetwcen Federal
and state Jurisdictions to be adjusted
"The practice of state commissions
in reducing intrastate rates and there
by placing an undue burden upon in
tcrstate traffic has created d growing
sentiment in favor of placing the rate
making poweI wholly under the Inter
state Commerce ommission. The bill
does not do this, but prescribes meth
cd of adjusting differences by allowing
the state commissions to sit with the
Interstate Commerce Commission and
participate in the hearings, but the lat
ter is to make t.. findings. Any undue
burden placed upon interstate or for
eign commerce is, under the bill, and
following the decision of the Supreme
Court of the United States in the
Shreveport cases. declared to be unaw
full. The findings of the commission
and orders based thereon shall be OBJ
any state or state authority to the con-
trary Notwithstanding.
Seventh The commission is given
full control over stock and bond issues
"Had such authority been granted
five years ago the New Haven & Hart
ford and similar fascos might have
been obviatcd. The grant of such au-
thority will supplant that Of the sew.
eral states, and thus remove one o1
the most common and urgent com
plants of the carriers.
"The bill authorizes the commission
to prescribe the method of application
and the purposes for which securities
may be sold and the right closely te
scrutnize how the proceeds are ex-
pended.
"Short time notes (two years. ir
amount not exceeding per cent a,
any time of the par value of securi'
ties outstanding may be issued with
out application. All issues of securi-
ties are void unless the terms and con-
dition of issue as prescribed in the
bill are complied with
Eighth Capitalization of control is
diminished by making it unlawful fol
any person to hold the position of Off
GER or director of more than one car
ricr unless such holding shall have
been authorized by the commission
Nor shall any officer or director re-
ceve any financial benefit through the
negotiation or sale of any securities
of his road. Violations of these pro-
visions are heavily penalized"
u. 5. to Stop Shipment