rTW 4589VMIPW5(,,M'M
The Commoner
JUNE, 1914
11
fact, or who shall willfully destroy, mutilate,
alter, or by any other means or device falsify
any accounts, records, memoranda, correspond
ence, documents, papers, or other writings to
which the commission has tho right of access as
above provided, shall be deemed guilty of a mis
demeanor, and shall bo subject, upon conviction
in any court of the United States of competent
jurisdiction, to a fine of not less than one thou
sand dollars nor more than five thousand dollars
or, if a natural person, to imprisonment for a
term of not les than one year nor more than
three years, or to both such fine and Imprison
ment, in the. discretion of the court. In constru
ing and enforcing tho provisions of this section,
tho act of any director, stockholder, officer,
agent, attorney, employee, receiver, operating
trustee, or other person acting for or employed
by any carrier, corporation, joint-stock com
pany, or other corporate combination, acting
within the scope of his employment, slrall be
deemed the act of the carrier, corporation, joint
stock company, or other corporate combination,
as well as that of the person so acting The com
mission may, in its discretion, issue orders
designating the operating, accounting, or finan
cial papers, records, books, blanks, tickets, stubs,
documents or other papers or writings to which
the commission has the right of access as afore
said which may, after a reasonable time, be de
atroyed, and prescribing tho length of time that
all or any of the same shall be preserved.
"Any examiner who divulges any fact or in
formation which may come to his knowledge
during the course of suph examination, except
in so far as he may be directed by the commis
sion, or by a court or judge thereof, shall be sub
ject, upon conviction in any court of the United
States of competent jurisdiction, to a fine of not
more than five thousand dollars or to imprison
ment for a term of not exceeding two years, or
to both such fine and imprisonment, in tho dis
cretion of tho court.
"The district courts of the United States shall
have jurisdiction, upon the application of the
attorney general of the United States at tho re
quest of the commission, alleging a failure to
comply with, or a violation of, any of the pro
visions of said act to regulate commerce, or of
any act supplementary thereto or amendatory
thereof, by any common carrier, to issue a writ
or writs of mandamus commanding such com
mon carrier to comply with the provisions of
eald acts, or any of them.
"And to carry out and give effect to the pro
visions of the act to regulate commerce or any
amendment thereof the commission is hereby
authorized to employ special agents or exam
iners, who shall have power to administer oaths,
examine witnesses, and receive evidence.
"Any common carrier, railroad, or transpor
tation company receiving property for transpor
tation from a point in one state to a point in an
other state shall issue a receipt or bill of lading
therefor, and shall be liable to the lawful holder
thereof for any loss, damage, or injury to such
property caused by it or by any common carrier,
railroad, or transportation company to which
such property may be delivered, or over whose
line or lines such property may pass, and no con
tract, receipt, rule, or regulation shall exempt
such common carrier, railroad, or transporta
tion company from the liability hereby Imposed:
Provided, That nothing in this section shall de
prive any holder of such receipt or bill of lading
of any remedy or right of action which he has
under existing law.
"The common carrier, railroad, or transporta
tion company issuing such receipt or bill of lad
ing shall be entitled to recover from the common
carrier, railroad, or transportation company on
whose line the loss, damage, or injury shall have
been sustained the amount of such loss, damage,
or injury as it may be required to pay to the
owners of such property, as may be evidenced
by any receipt, judgment, or transcript thereof."
Sec. 2. That the act to regulate commerce as
amended be further amended by inserting there
in a new section, to be designated section twenty
a, to be placed after section twenty and before
section twenty-one, to read as follows:
"Sec. 20a. That from and after the passage
hereof it shall be unlawful for any common
carrier subject to the act to regulate commerce,
as amended, to issue any capital stock or certifi
cate of stock or any bond or other evidence of
Interest or indebtedness of the carrier, (herein
after collectively termed "securities"), or to as
sume any obligation or liability as lessor of an
other carrier, or as lessee, guarantorsurety, or
otherwise in respect of the securities of any
other person, natural or artificial, if connected
with or relating to that part of tho business of
such carrier governed by tho act to regulate
commerce as amended, oven though permitted
by tho authority creating tho carrier corpora
tion (a) unleds It bo for some purpose within Its
corporate powers and In the public Interest,
necessary or appropriate to the proper perform
ance of Its service for the public, and not tend
ing to impair the financial ability of the carrier
to discharge its duty to tho public; and
(b) unless and until, and then only to tho ex
tent that, upon application by tho carrier, and
after Investigation by the commission of tho
purposes and uses of the Issue and tho proceeds
thereof, such issue is approved by order of tho
commission as reasonably necessary or appro
priate for the purposes stated.
"Each such application shall bo made In such
form as the commission may from time to time
determine and prescribe, and shall set forth such
matters as 1o commission may require, includ
ing: "First, (a) The total amount of proposed
issue, and how authorized by or on behalf of
the carrier;
"(b) The number and amount of all of Its
securities outstanding at any time prior to tho
date of such application, tho amount thereof re
tired prior to said date, tho amount thereof then
undisposed of, and whether such amount is hold
In the treasury of the corporation as a free assot
or pledged, and, if pledged, tho terms and condi
tions of such pledge;
"(c) The number and amount of securities
then to be issued, and whether to be sold,
pledged, or held In the treasury of tho corpora
tion as a free asset, or otherwise disposed of or
applied, as the case may be, specifying numbor
aud amount In each case; If any such securities
are to be sold, the terms and conditions of sale;
if any part of the consideration to be received
therefor is other than money, an accurate and
detailed description of such consideration; if
any such securities ar6 to be pledged, the terms
and conditions of pledge; or" If other disposition
or application is to be made, a full and detailed
explanation thereof;
"(d) The number and amount of its securities
so authorized, but not then to be issued;
"(e) If the issue is of shares of stock, tho
number thereof, the face or par value thereof,
If any, specifying whether common or preferred,
and the number and kinds of then outstanding
shares previously issued.
"Second. The preferences or privileges grant
ed to the holders of any such securities; tho
dates of maturity, rates of interest, or fixed divi
dend, whether cumulative or not, and any con
version rights granted to the holders thereof,
and the price, if any, at which any such securi
ties may be retired or redeemed.
"Third. Tho purpose to which tho proceeds
of tho issue are to bo devoted, in such detail as
tho commission may require.
"Fourth. In case of proposed assumption of
any obligation or liability In respect of tho
securities of any other person, natural or arti
ficial, like showing shall bo made as to the finan
cial condition of said other person, as also of the
objects sought and benefits to be realized by tho
carrier from such assumption, to be accom
panied by copies of any agreements or contracts
therefor.
"Every application for authority, as also every
certificate of notification hereinafter provided
for, shall be made out under oath, signed, and
filed on behalf of the carrier by Its president, a
vice president, auditor, comptroller, or other ex
ecutive officer having knowledge of the matters
therein set forth and duly designated for that
purpose by the carrier.
"Whenever any securities set forth and de
scribed in any application for authority or certi
ficate of notification as pledged or held as a free
asset in tho treasury of tho carrier shall, subse
quent to the filing of such application or certifi
cate, be sold, pledged, repledged, or otherwise
disposed of by the carrier, . such carrier shall,
within tou days after such salo, pledge, ropledge,
or othor disposition, file a certificate of notifica
tion to that offoct, sotting forth therein all such
facts as aro required by subdivision (c) of tho
foregoing first paragraph, or as may be required
by tho commission.
"Upon application to the commission for ap
proval of proposed Issues of securities tho com
mission shall cauoo notice to bo given to tho
railroad commission or public service or utilities
commission, or othor appropriate authority, of
each state in which the applicant carrier oper
ates. Tho railroad commission, public service
or utilities commission, or othor appropriate
state authority thus notified shall have the right
to present hoforo tho commission such repre
sentations as they may deon just and proper for
preserving and conserving tho right and inter
ests of their people and tho states, respectively,
as Involved in such proceeding. Tho commission
may hold hearings, If It sees fit, to enable it to
determine Us decision upon tho application for
authority.
"Nothing herein shall be construed to imply
any guaranty or obligation as to such issues on
tho part of tho United States.
"Tho foregoing provisions of this section 20a
shall not apply to notes to bo issued by any said
carrier maturing not more than two years after
tho date thereof and aggregating not moro than
five per centum at any time of the securities of
said carrier then outstanding. Within ton days
after tho date of such notes tho carrier Issuing
tho samo shall filo with tho commission a cortifl
cato of notification, in such form as may from
ttmo to timo bo determined and prescribed by
tho commission, setting forth as nearly as may
be the same matters as those required In respect
of applications for authority to Issue othor securi
ties. "Tho commission shall roqulro periodical or
special reports from all carriers hereafter issu
ing any securities, including such notes, which
shall show, in such detail as tho commission may
require, tho disposition made of said securities
and the application of the proceeds thereof.
"All issues of securities contrary to the pro
visions of this section may bo enjoined by any
court of competent jurisdiction at tho suit of tho
United States, or of any director, officer, or
stockholder of tho carrier proposing to make the
issue; and any director, officer, attorney, or
agent of such corporation who assents to, or
concurs in, any issuo of securities forbidden by
this section 20a shall upon conviction bo. pun
ished by a fino of not less than ono thousand
dollars nor moro than ten thousand dollars, or
by Imprisonment for not less than one year nor
more than three years, or by both such fine and
imprisonment, in the discretion of tho court.
"From and after two years from the passage
hereof it shall be unlawful for any person to
hold tho position of officer or director of moro
than one carrier subject to the act to regulate
commerce, as amended, unless such holding shall
have been authorized by order of the commis
sion, upon duo showing, In form and manner pre
scribed by tho commission, that neither public
nor private Interest will bo adversely affected
thereby. From and after the passage hereof it
shall bo unlawful for any officer or director of
any such carrier to receivo for his own benefit,
directly or indirectly, any money or thing of
value, in respect of the negotiation, hypotheca
tion, or sale of any securities issued or to be
issued by said carrier, or to share in any of the
proceeds thereof, or to participate in the making
or paying of any dividends of an operating
canrler from any funds properly included iii
capital account, or otherwise than from tho
revenues of said carrier. Any violation of these
provisions shall be a misdemeanor, and on con
viction In any United States court having juris
diction shall be punished by a fine not exceeding
ten thousand dollars or Imprisonment for a term
not exceeding three years, or by both such fine
and Imprisonment, in tho discretion of the court."
Interstate Trade Commission Bill
H. R. 15613. An act to create an interstate
trade commission, to define Its powers and duties,
and for other purposes.
Be it enacted by the senate and house of rep
resentatives of tho United States of America iq
congress assembled, that a commission is hereby
created and established, to bo known as tho in
terstate trade commission '(hereinafter referred
to as tho commission) which shall bo composed
of three commissioners, who shall bo appointed
by tho president, by and with the advico and
consent of tho senate. Not moro than two of tho
commissioners shall ba members of tho same
(Continued on page 12. X
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