The sun., 1900-03-02
A REPORT MADE ON TRUSTS
The Industrial Commission Sub
mits Preliminary One
to Congress.
ADVISES NEW LEGISLATION
Says Promoters of Combines Should
be Required to Furnish for In
vestors' Benefit Full De-
tails Regarding Their
Business.
ADVISES NEW LEGISLATION

Washington, March 1.-The industrial
commission has submitted to congress a
preliminary report ON trusts and indus
trial combinations, together with testi-
mony, review of evidence charts show
ing effects Of prices, etc. The commits
sion makes the following recommended
tions, based ON such information as it
now has:
Promoters and organizers of corpora
tions or industrial combinations which
look to the public to purchase or deal in
their stocks or securities should be re-
quired to furnish full details in regard
to their business necessary for safe and
intelligent investment. Any prospectus
which fails to give this information or
which gives false information should be
held legally responsible. The nature of
the business, together with the powers
Of the various officers, should be express
ed in the certificate Of incorporation,
which should be open to inspection.
The directors or trustees should be re-
quired to report to the members of such
corporations its financial condition in
reasonable detail; to give members ac-
ress to records Of directors meetings or
otherwise and TO furnish them before
annual meetings with lists of members.
with their addresses and their several
holdings, and to provide in whatever
other ways may be named in the ccrtifi
cate of incorporation, means whereby the
members may prevent the misuse of their
property by directors or trustees.
1t is recommended that the larger cor
porations should be required to publish
Iannually Il properly audited report show
ing in reasonable detail their assets and
liabilities, with profit or loss, such re-
port and audit TO be under oath and to be
subject TO government inspection.
Interstate Commerce.
With regard to the interstate commerce
commission, it is recommended that it be
given authority not only to prescribe the
methods of keeping accounts of the rail
roads and to demand reports in such dp-
tail as it may require, but also to inspect
and audit such accounts; that the de-
cisions of the commission be made opera
tive at a day fixed in the decisions and
TO remain so unless reversed by the Unit
cd States courts on appeal: that the COM
mission be authorized to prescribe classi-
fications of freight articles and to make
rules and regulations for freight trans
poftdlloh tlFuuglOut llic I Hlleu states
and that penalties for violations of the
interstate commerce act should be appro-
pirate fines against the carrier and not
Imprisonment o. officials.
Commissioner I.orimer states that he
concurs in all the recommendations, but
withholds his Judgment on transporta-
tion corporations until testimony now
being compiled 10y the commission is sub
mittcd 10 congress with recommended
tions. Commissioner Clarke concurs in
all recommendations except that he be-
lieyes rates fixed by the interstate COM
merce commission should not go into eff
feet in case of appeal until affirmed by
court and that trial on appeal should he
expedited.