The evening times., 1900-03-01

The Industrial Commission submitted 10
Congress today a preliminary report OF It's
Investigations into the operations OF
trusts and industrial combinations. At
tached TO the report is a mass OF test-
mouy 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 tfe
urgent demand for information was deem
ed a sufficient warrant for making part
report at this time.
"As a result of cur 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 c5m-
binations it 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 severally adopted by the States, or 50
far as possible By the Federal Government,
we are confident viii be OF great service,
and will not endanger business prosperity:
To prevent the organizers Of corpora
tions or industrial combinations from de-
ceiyiug investors and the puic, either
through suppression of material facts, or
by making misleading statements, your
Commission recommends:
The Recommendations.
"(a) That the promoters and organizers
Of corporations or industrial combinations
which look to the public to purchase CT 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, and kind of same, and all
other material information necessary fer
safe and intelligent investment.
"tb) That any prospectus or 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-
Cistes. 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
bers. should be required to be expressed
in the certificate Of corporation. which in
strument should be open 10 inspection by
any investor.
The affairs OF a corporation or industrial
combination should be carried on. without
detriment TO the public. in the interest OF
its members and under their lawful con-
troll To this end the directors or trustees
should be required:
la To report TO the members thereof
its financial condition in reasonable detail
verified by competent auditor at least
once a year.
"tb} To inform members regarding the
method and conduct of business by grant
ing them. under proper restrictions. access
10 records CT directors meetinges, or 9TH
erwise.
'-tc To provide for the use Of members
before the annual meetings. lists Of MEM
bers with their addresses and their sex
eral holdings.
may be named in the certificate OF incor-
p0ration means whereby the members may
prevent the misuses Of their property by
directors or trustees.
The larger corporatiOns-the so-called
trusts-should be required 10 publish an
nually a properly audited report, showing
in reasonable detail their assets and liza
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 TO
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 the
Commission and herewith submitted, ii las
been proved that. before the passage of the
Interstate Commerce act, discriminating
freight rates were frequently secured by
large shippers. Other evidence herewith
submitted, to be supplemented by addi-
tiOnal testimony which will be laid before
the Congress shortly. seems TO show that
like discriminating favors are even LOW
granted. Believing that these discrimina-
tions clearly tend toward the control of
business by large combinations, your Com
mission further recommends
la The the Interstate Commerce Com
mission be given authority not only to pre-
scribe the methods of keeping accounts of
the railroads and to demand reports in
such details as il may require, but also 10
inspect and audit said accounts.
"tbl That the Interstate Commerce law
be so amended as TO make the decisions
OF the Commission operative at a day fixed