RAILWAYS AND LAW.

Dominion, Volume 3, Issue 815, 12 May 1910, Page 5

RAILWAYS AND LAW.

JIB. TAFT'S BILL. AMENDED AND PASSED BY HOUSE. Bj TeloeTaph—Prosa Association—OopyriEht New York, May 10. Tlio United States House of Representatives, by 200 votes to 126, passed .'tlie Government llailvoad Bill, with an Amendment by the Democrats providing i'br periodical valuation of the railroads.

THE BILL AND THE "MERGERS." 'It has been suggested in recent cablegrams Unit President Tuff's • liailroad iiill is being mutilated by the House of Kenresentatiyes, but it lias not been made clear what (if any) vital mutilation lias taken place. According to a statement las cabled) by the Washington correspondent 'of "The Times' a few days ago, the "merger" provisions had been struck out, ami it was ieared that the clauses against over-capitalisa-tion of .railroads would go next. To-day's cablegram indicates that tho clauses have not been thrown out, but that a provision as to periodical revaluation, as a check upon over-capitalisation, has been added. As to tho rejected "merger" provisions, the .following, fiom the "New ■ilork .Independent" throws some light:— "As originally introduced, the.Bill forbade a couipauy to control a competing road'by purchase of stock, but there was added a proviso that if the company at the time of tho enactment of tho Bill should bo holding one-half tho stock of another it might buy the remainder: This proviso has, been stricken out in thoillouse committee, where some assert that it would legalise thb Harriman railroad merger, which the Government is now asking the Courts to dissolve, tho prosecution'being directed by AttorneyGeneral Wickersharn, who wrote the proviso in question. It is an interesting coincident that on the day when the proviso was eliminated by the committee, testimony was given in the merger suit showing Hint because of the proviso tho Union Pacific, in January last, set oiit to acquire 50 pel' cent, of the Southern Pacific stock, bought 74,000 shnres, and was about to buy the additional shares needed, when it learned that the proviso would be rejected. The proviso was inserted not for tho benefit of such a* combination, but to protect mergers made long ago and now regarded as harmless, such as the union of the New York Central and the West Shore.

"There is a difference of opinion as tn the effect of the adoption of it upon the Harriman, merger. Rome hold that it would protect that combination and end the prosecution, now in progress; others assort th.it it would not."