Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1931-02-20

over RAILWAY
SYSTEM ASKED
House Chairman De-
sires Law Affecting
Companies

WASHINGTON, Feb. 20. Up
Prompt enactment Of a law TO place
railroad holding companies under
Jurisdiction Of the Interstate COM
merce commission was advocated
10 the house today BY Chairman
Parker. of its Interstate commerce
committee.
The recommendation was made
in a speech in connection with the
submission Of an exhaustive scport
on the committee investigation be-
gun a year ago Al the instance Of
tile commission. which complained
II was without power TO prevent rail
consoIidati1ls through holding
companies.
Parker proposed an amendment
to the Interstate commerce act.
suggesting that when 1t is passed
lit should he made very clear that
it does not give immunity 70 any
company which before the effec-
tive date az the amendment had
acquired control OF some railroad
IN violation or an existing statute
The commission had urged the in
uuiry with a view 70 determining
what legislation was necessary 70.
bring about supervision of the rail-
roads which have undergone many
changes In control through holding
company mergers in the past ten
years.
Propose Consultations
The New Yorker said that soon
the Interstate commerce commits
sion would have To consider the
projected consultations Of eastern
trunk lines into four gigantic sys-
TENS. including the Van Sweringen
lines. the Pennsylvania. New York
Central and the Baltimore and
Ohio.
If there should be undue delay.
in coming 70 the commission with.
the proposed applications of the
four systems, he said. If there
should continue to be striving aft
er selfish advantage and hesitancy
in submitting the issues TO the
commission. then the congress may.
find II necessary % clothe the COM
mission with undoubted power 70.
compel divestiturc Of the ownership
Of railway stock where the COM
mission would find that such own
erShip had been acquired without
the commissions approval and was
being continued contrary to the
commissions finding Of what is in
the public interest"
Texan Makes Report
The report. compiled under the
direction OF Or. w. M. ". Splawn.
former president OF Tets Univer-
sity. constitutes the most elaborate
study ever conducted into the rail-
roads by a congressional committee.
DIR. Splawn submitted three recon-
mendations.
The first was a proposed amend
ment 10 the Interstate commerce
set TO bring within the jurisdiction
OF the Interstate commerce COM
mission for approval or disapproval
any acquisition Of the control OF a
railroad which would result in
bringing that road into utilization
with, in control OF. or under the
management of another railroad.
whether the acquisition be by hold
AIS A1AARlAt W GtAltA WISH
The second was that al the next
session. the Interstate commerce
committee shall give consideration
70 whether or not legislation is ne
ceSsary 10 deal with an past ac-
QUESTIONS ol railway properties such
as are disclosed II this report. and
which have not had the approval ol
the Interstate commerce commits
sion as being IN the public inter-
est
The third would broaden the
scope OF tho investigation author
lied by the house ITO include all
holding companies engaged IN IN
terstate commerce. Splawn found
that the use Of the holding COM
pany had been more varied III 9TH
er fields and suggested the con-
tinued Investigation. because hold
ing companies were not confined
70 railroads IN interstate transpor-
tation.