CONTENTS Joseph B. Eastman, member of the Interstate Commerce Commission. Charles D. Mahaffie, member of the Interstate Commerce Commis- Telford Taylor, associate counsel to the subcommittee of the Senate Committee on Interstate Commerce, appointed pursuant to Senate Henry W. Clark, general counsel, Union Pacific Railroad System__ E. E. McInnis, general counsel, Atchison, Topeka & Santa Fe Railway Henry Wolf Bikle, general counsel, Pennsylvania Railroad Co..... C. J. Beakes, general counsel, New York Central Railroad Co.... III TO AMEND THE INTERSTATE COMMERCE ACT MONDAY, JUNE 26, 1939 UNITED STATES SENATE, ON INTERSTATE COMMERCE Washington, D. C. The subcommittee met, pursuant to call, at 10:30 a. m., in room 457, Senate Office Building, Senator Harry S. Truman presiding. Present: Senators Truman (chairman of the subcommittee) and Tobey. Senator TRUMAN (chairman of the subcommittee). The subcommittee will come to order. I have a brief statement to make for the record, but first will say that the subcommittee will be in session today and tomorrow, and if necessary on Wednesday, and then we will adjourn until Monday, July 10. The bill on which we are opening these hearings is S. 2610, a bill to amend the Interstate Commerce Act, which was introduced jointly by Senator Wheeler and myself. I will put into the record a copy of the bill and also a copy of the committee print, the latter dated June 21, 1939, showing the changes which this bill proposes to make in the existing law. (S. 2610, June 15, 1939, and S. 2610 (committee print), June 21, 1939, will here be printed, as follows:) 1 76TH CONGRESS 1ST SESSION S. 2610 IN THE SENATE OF THE UNITED STATES JUNE 15, 1939 Mr. WHEELER (for himself and Mr. TRUMAN) introduced the following bill; which was read twice and referred to the Committee on Interstate Commerce 1 A BILL To amend the Interstate Commerce Act, and for other purposes. Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress asssmbled, 3 That paragraph (3) of section 1 of the Interstate Commerce 4 Act, as amended, is hereby amended by inserting "(a)" 5 before the first word, and by adding at the end the following: "(b) The term 'person' as used in this part means an 7 individual or a company. 6 8 "(c) The term 'company' as used in this part means a 9 corporation, partnership, association, joint-stock company 10 business trust, organized group of persons, whether incor, (Page 2) 1 porated or not; or any receiver, trustee, or liquidating agent of any of the foregoing in his capacity as such. 2 12345678ROG 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 "(d) The term 'subsidiary' as used in this part means— "(A) a company 10 per centum or more of the outstanding voting securities of which are directly or indirectly held with power to vote, owned, or controlled by one or more carriers, by one or more persons which are subsidiaries by virtue of this subparagraph (d), or by one or more such persons and one or more carriers, unless the Commission, as provided in subparagraph (g) by order determines such company not to be a subsidiary; or "(B) a person which is controlled directly or indirectly, by stock ownership, lease, agreement, or voting trust, by common officers, directors, or stockholders, by reason of circumstances surrounding organization or operation, or by any method whatsoever, by one or more carriers, by one or more persons which are subsidiaries by virtue of this subparagraph (d), by one or more such persons and one or more carriers, or by any other person or persons having such control under any indenture, trust, or other agreement or arrangement with, or by means of the assets of, one or more such persons or carriers. 123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12345678 9 10 11 12 13 (Page 3) "(e) The term 'controlling person' as used in this part means "(A) a person which directly or indirectly holds with power to vote, owns, or controls, 10 per centum or more of the outstanding voting securities of a carrier or of a person which is a controlling person by virtue of this subparagraph (e); or "(B) a person which controls, directly or indirectly, alone or pursuant to an arrangement or understanding with one or more other persons, by stock ownership, lease, agreement, or voting trust, by common officers, directors, or stockholders, by reason of circumstances surrounding organization or operation, or by any method whatsoever, a carrier or a person which is a controlling person within the meaning of this subparagraph (e). "(f) The term 'affiliate' as used in section 20 of this part means "(A) a company 10 per centum or more of the outstanding voting securities of which are directly or indirectly held with power to vote, owned, or controlled, by one or more controlling persons, by one or more persons which are affiliates by virtue of this subparagraph (f), or by one or more such persons and one or more controlling persons; or (Page 4) "(B) a person which is controlled, directly or indirectly, by stock ownership, lease, agreement, or voting trust, by common officers, directors, or stockholders, by reason of circumstances surrounding organization or operation, or by any method whatsoever, by one or more controlling persons, by one or more persons which are affiliates by virtue of this subparagraph (f), by one or more such persons and one or more controlling persons, or by any other person or persons having such control under any indenture, trust, or other agreement or arrangement with, or by means of the assets of, one or more such persons or controlling persons. "(g) The Commission, upon application, shall by order 14 declare that a company is not a subsidiary under clause (A) 15 of subparagraph (d) if the Commission finds that the ap16 plicant is not controlled, directly or indirectly, by stock 17 ownership, lease, agreement, or voting trust, by common 18 officers, directors, or stockholders, by reason of circum19 stances surrounding organization or operation, or by any 20 method whatsoever, by one or more carriers, by one or more subsidiaries, by one or more carriers and one or more subsidiaries, or by any other person or persons having 23 such control under any indenture, trust, or other agreement or arrangement with, or by means of the assets of, one or more such carriers or subsidiaries. The filing of an applica 21 22 24 25 |