Show REPORT ON RAilROAD Bill BillIS BILLIs IS fAVORABLE The Majority Report Gives Prominence to Court of c V Commerce Feature WASHINGTON March 7 Care Carefully Care fully preserving the principles so clearly clearly cleary clear clear- ly y enunciated in tho Republican platform platform plat plat- form Lorm of 1908 is the way the the majority of the senate committee on interstate commerce made its report today on the administration railroad bill interprets interprets interprets in in- tho provision to permit common common cornmon com corn mon carriers to enter into traffic agree agree- ments The report is is signed by Senators El- El lkins Ikins CulLom Aldrich Kane Crane and Nixon and will be printed with the minority mi mi- mi- mi report submitted a few days ago py by Senators Clapp and Cummins and with mth the individual report of Senator Sena Sena- toT tor Newlands Approval of the court of commerce feature fe is is given prominence although comment upon other provisions is far more interesting For instance the re reo re- re po t says that the effect of the traffic a agreement ement provision is to relieve carriers carriers car car- llers from the prohibition of the antitrust antitrust antitrust anti anti- trust act while preserving unimpaired the control of the interstate commerce commission over all such a agreements It is declared declare that the provision is in inexact inexact inexact exact compliance with declarations in inthe inthe inthe the Republican platform After quotin quoting quoting in ing the cla clause se of the platform concerning concerning concerning concern concern- ing such agreements the report says V The contention that this declaration declaration declara declara- tion can only be complied with by requiring requiring re reo re- re quiring quirin the approval of such agreements agreements agree agree- ments by the interstate commerce commission commission commission com com- mission mission before they become operative is is in in the opinion of the tho committee destitute destitute destitute des des- of the slightest foundation 4 The The section in question carefully preserves the principles clearly enunciated enunciated enunciated in the platform and only by a wilful distortion of language could it b be contended that this carefully guarded guard guard- ed provision involved any abandonment abandon abandon- ment meat of the principle of competition between between be be- tween naturally competing lines Court t of Commerce Indorsing the proposed court of commerce com corn merce the report says that the principal principal pal argument in favor of its creation is that it will prevent delay and confusion confusion con con- fusion in the enforcement of the law by ly creating one tribunal specially versed in in the complicated and often technical questions arising out of the application of the interstate commerce law to railroads and other carriers sub sub- to the act Supreme court rulings are cited in support of the contention that the scope of review of the commissions commission's orders in in the court will not be wider thin than it isnow isnow is isnow now in in the circuit courts It is contended con con- tended that courts ought not to be endowed en en- dowed with administrative merely powers powers pow pow- ers s such as are involved in the exercise exercise exer- exer cise cise of the commissions commission's discretion The claim that there will not be enough business to keep the tribunal occupied is is not seriously cons considered dered The administration bill gives the attorney attorney at at- torney general entire charge and control con eon of the interests of the tho government in in all aU cases and proceedings in m the court o of commerce and in the supreme court on appealed cases This is a change from the existing law The committee says that the present system combined in in the members of the interstate com comi merce commission the functions of inT investigator in- in T j 1 judge and P prosecutor wh which ch is IS A to be contrary to the correct theory of law of procedure To Investigate Bate Rate Increases C Commenting on the provision for investigation by commission of oC proposed Ing In- In g it In rates the report says that a majority of the Commission Is ss of aih the opinion that the commission should be authorized to commence the theSS Investigation ot of a proposed Increase In rates or change chanc in classification as soon as It Is filed SS tion The Tho majority that any supports time before also the the proposItion proposition rate or classification becomes effective the commission corn com mission should be empowered to postpone post post- pone pens the effective date for tor a reasonable period to enable It to investigate the proposed pro pro- action I posed a V pOi pOi-h I I The bill fixes this reasonable period at sixty days and although the tho commission commission commis commis- sion don recommended that this time be ex extended extended ex- ex tended to days the committee says It believes that with due diligence the committee can determine within the time allotted whether the increase should be approved As Ag to the provisions relating to through rates and through routes the shippers shipper's right to route shipments and the making of annual reports the majority follows the line of argument advanced by Attorney Attorney Attorney At At- torney General Wickersham in his published pub abstract of the bill Concerning the Important sections re relating relating relating re- re lating to the purchase of ot competing lines the report saS says Purchase of ot Competing Lines Criticism of ot this section has been mado made upon the ground that It did no not prohibit the acquisition by means of a holding corporation of ot stocks and competing competing com corn lines of railway The provisions provisions provi- provi lons of the Sherman trust anti-trust law so completely cover this ground that the committee deemed it unnecessary to attempt attempt at- at tempt empt a repetition of ot those prohibitions In n this act For the same reason it was not deemed expedient to deal with the question of ot combinations of express companies companies com corn panics or telegraph or telephone companies com com- panics because where such combinations constitute a restraint of trade the Sherman Sherman Sher Sher- man act affords ample authority to reach and prevent them Attention is called to the fact that the bill HI provides a means of ot ascertaining by judicial investigation whether a bona fide contract proposed to be entered into respecting re- re erty tI of f railroads the r acquisition is in of violation stock I n or of property property prop prop- the g prohibitions of oC the Sherman act act before large arge Investments of ot capital are made in reliance upon a seeming although possibly possibly bly ly illusory legality This provision Is held to be of ot obvious advantage to the government for the reason that such an investigation would be conducted before the he contract became effective Bearing upon the provisions affecting the he issue of ot stocks and bonds the report takes up the legal side of ot the questions Involved The bill In that regard is defended defended de- de fended ended and the report says sas of ot this feature feature feat teat ure of ot the bill These provisions are so framed as not noto notto notto to o prevent the tho ordinary means of financIng financing Ing ng railroad companies while Interposing an effectual protection against the Issue of stocks or bonds without adequate con con- While it may be objected that the provisions of ot this act do not go far farenough farenough farenough enough in regulating the capitalization of ol railroad corporations no candid critic can fail fall to admit that they constitute a along at long such ong t step national in the legislation direction n na a and of e establishing supervision I l g gas as will prevent the future of stocks and bonds by interstate carriers and that they go as far tar as prudent legislation legislation legis- legis lation should go in entering upon this new field of ot national restraint upon the Issue of stocks and bonds by the Interstate interstate Inter inter- state carriers |