The New York herald., 1920-12-31
RAIL PURCHASE BILL
VETOED BY WILSON
Rejects Measure to Allow
Roads to Buy Supplies Of
Joint-Owned Companies.
Special Despatch to THE NEW YORK HERALD.
New York Heruld Bureau,

Special Despatch to THE NEW YORK HERALD.
New York Hernld Bureau.
Washington, ID. c., Dec. 80.
President Wilson to-day returned to
the Senate without his approval the act
passed early this month which would
exempt railroad companies for one year
from the provisions Of Section 10 Of the
Clayton antitrust act. This section
makes 1t unlawful for a railroad COM
pany to purchase more than $50,000
worth Of supplies from any concern
whose directors are also directors In the
railroad company making the purchase
Senator La Toilette (wis.) tried to
have the Senate Immediately pass on
the measure to test whether the veto
should be sustained A question arising
whether the message ought not to be
referred to the Interstate Commerce
Committee before another vote. 1t was
agreed that final action be delayed
until next week.
Senator La Folietts insists the veto
be sustained. and there were no indica-
tions to-day that any attempt would be
made by the sponsors OF the act to have
II passed over the veto. The author.
Senator Cummins (Iowa). Is absent. II
his absence Senator Kellogg (Minn.)
who Is one of the members of the Inter
state Commerce Committee who voted to
report 1t, told the Senate the suspension
act was passed at the informal request
Of the Interstate Commerce Committee
on the theory that II would enable rail-
roads to obtain supplies cheaper at a
time when the roads are in a stringent
financial period.
There was no discussion of the veto
in the Senate to-day. Senator La Fol-
lette afterward stated, however that
neither he nor others on the Interstate
Commerce Committee who are opposed
to the bill were informed that the bill
was to be considered by the commit
tee. He said that 1t had been passed
when Senators opposed to II were not
present. and intimated 1t had been
slipped through In much the same
manner that the Senate passed the bill
of Senator Poindexter Washington en-
forcing drastic penalties against rail-
road strikes. without debate or roll call.
Senator La Toilette will ask next
week to have the veto sustained, and
Is prepared to make a long argument
showing that further exemption of rail-
roads from the provisions of the anti
trust laws will be against public inter-
est and unduly in favor OF the rail-
roads.
In his veto message President wilson
showed that while the Clayton bill was
passed more than six years ago, its
provisions never have been enforced
against the roads. At its passage in
October. 1914. 1t was not to become ef-
fective for two years. The Intervention
Of Federal control of railroads delayed
it's enforcement during the war, and II
was postponed again In the Esch-Cum-
Minis railroad law passed early this
year.
: It will become effective January
next II the Presidents veto is sustained.
otherwise II will be postponed until jan
uary 1. 1929. Labor organizations have
been a unit In opposing further suspen-
sion and are backing the veto to the
limit. They have contcnded that because
of the exemption the railroads have
been able to divert business to open
shop" concerns and also have saddled
on the Government expenses for equip
ment and repairs that should be borne
by the railroads.
In his veto message the President said
reasons for further suspension OF the act
seemed Inadequate" to him.