Jasper County Democrat, Volume 13, Number 20, Rensselaer, Jasper County, 15 June 1910 — TAFT WOULD BAR WATERED STOCKS [ARTICLE]

TAFT WOULD BAR WATERED STOCKS

Insists on Provision to Control Issues of Rail Bonds. CONFERENCE FIXES A PLAN Commission Will Probe Matter and Report at Next Session Best Method of Meeting the Situation.

Washington, June 13. —President Taft does not propose to let congress adjourn without showing its purpose to carry, out the pledge of the Republican party to.enact legislation providing for governmental supervision of railroad stock and bond issues. Supported by the attorney general, he delivered an ultimatum to conferees of the senate and house and Speaker k f-Tiunon along this line and as a result a paragraph will be added to the railroad bill providing for a commission to investigate and report at the next session of congress the best means of dealing with the matter. The president was told again that with all the Democrats but one opposed to giving the interstate commerce commission supervision bn this subject, it was absolutely impossible to get an out-and-out provision for the control of stock and bond issues in the bill at this session. There were present at the conference at the White House Speaker Cannon, Senators Elkins and Aldrich and Mr. Mann of the conferees and Attorney General Wickersham. Wants Party Pledge Kept. The president called the conference to indicate more clearly to the conferees that he wished the house, provision giving the interstate commerce

commission supervision over stock and bond issues retained in the bill. He declared again that the party had pledged itself to enact legislation xvhtrb would nfovont the overissue of securities, or “stock watering,” as the Viacase is more geuerany Known. The senate conferees explained the situation in the upper house to the president. The president told that every Democratic senator, with one exception, was opposed to the supervisory provision on the ground that it infringed on the rights of the state to supervise corporations chartered under state laws. Other senators, in the Republican ranks, were opposed to the provision on similar grounds, and because of pressure from their home states. Foe to "Watered” Stocks. The president declared at the conclusion of the conference that he would continue to urge legislation to prevent “watering” of railroad stocks so long as he was in the White House. It is understood that the president has receded from his position in regard to the time for the suspension of alleged unreasonable rates by the interstate commerce commission and that the bill as it comes from the conference will fix the time at fen months, the same as contained in the senate bill. . ‘