The evening times., 1900-03-01

The Industrial Commission submitted 10
Congress today a preliminary report OF It's
investigations into the operations or
trusts and Industrial combinations. At
tached 10 the report is a mass OF tesu-
monv given by witnesses before the Com
mission. A large field of investigation,
the Commission says, remains uncovered,
only eleven commercial combinations or
trusts having been investigated. but the
urgent demand for information %as deem
ed a sufficient warrant for making a part
report at this time.
AS result Of our Investigations Of in
dustrial combinations thus far the Com
missioners say, your Commission are OF
the opinion that certain evils in connee-
tion with them should be checked by
appropriate legislation Experience proves
that industrial combinations have become
fixtures in cur business life. Their power
for evil should be destroyed. and their
means for good preserved. As a result of
further development on the part OF com-
binations il may be possible later 10 pso-
pose additional measures for relief without
running the risk Of increasing the evils.
At present we propose the following which,
if sevrrally adopted by the States, or 50
far as possible by the Federal Government,
we are confident will be OF great service,
and will not endanger business prosperity:
To prevent the organizers Of corpora
tiOns or industrial combinations from de-
ceiying investors and the pulic. either
through suppression Of material facts, or
by making misleading statements. your
Commission recommends:
The Recommendations.
"(0 That the promoters and organizers
Of corporations 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 regarding the
organization. the property. or services for
which stocks or securities are to be is
sued. amount. ana kind OF same, and all
other material information necessary fer
safe and intelligent investment
"tb) That any prospectus OF company Of
any kind soliciting subscriptions which
fails to make full disclosures as aforesaid.
or which is false. should be deemed fraud
ulent, and the promoters, with their asso-
Ciates. held legally responsible.
"(c) That the nature OF the business OF
the corporation or industrial combination
all powers granted to directors and off,
GERS thereof and all limitations upon them
or upon the rights or powers OF The mem
in the certificate Of corporation. which In
strument should be open TO inspection by
any investor
The affairs OF a corporation or industri q
combination should be carried on. withO--
detriment 10 the public in the interest Of
its members and under their lawful con-
troll. To this end the directors or trustees
should be required:
"(al To report to the members thereof
its financial condition in reasonable detail
verified by a competent auditor at least
once year.
"(b) To inform members regarding the
method and conduct of business by grant
ing them. under proper restrictions. access
to records CT directors meetinges, or 9TH
erwise.
"tC To provide for the use Of members
before ;he annual meetings. lists Of mem
bers with their addresses and their sev-
eral holdings.
"(dl To provide, in whatever other ways
may be named in the certificate OF incOT-
pOratiOn means whereby the members MAJ
prevent the misuses Of their property hy
directors or trustees.
THE larger corporatiOns-the so-callei
trusts-should be required 20 publish an
nually a properly audited report. showing
In reasonable detail their assets and liza
bilites. with profit or loss; such report and
audit under cath 10 be subject TO Govern
ment inspection. The purpose OF such pub
liCity is to encourage competition when
profits become excessive thus protecting
consumers against too high prices and "a
guard the interests OF employees by a
knowledge Of the financial condition OF the
business in which they are employed.
From the testimony given before tbs
Commission and herewith submitted il lal
been proved that before the passage of tht
Interstate Commerce act. discriminating
freight rates were frequently secured b.
large shippers. other evidence herewith
submitted. to be supplemented by addi
tiOnal testimony which will be laid befoT
the Congress shortly, seems 10 show tina
like discriminating tavOrs are even I.Ov
granted Believing hat these disCrimind
tions clearly tend toward the control o
business by large combinations, your Com
mission further recommends
"(a) The the Interstate Commerce Com
mission be given authority not only 10 pre-
scribe the methods OF keeping accounts o
the railroads and TO demand reports fl
such details as il may require. but also 4
inspect and audit said accounts.
'(bl That the Interstate Commerce lay
be so amended as 10 make the decision
of the Commission operative at a day fxe