The daily morning journal and courier., 1906-02-21
VIGOROUS ATTACKS OK
 CORPORATION MERGERS
IMPORTANT HEARING BEFORE ATTORNEY GENERAL OF NEW
 FORK.

Hearst's Petition That He Begin an Action to Prevent the Great Ryan Belmont Traction Combine in New
 York City--Anotber Hearing Before the Judiciary Committee on the shanahan Bill Making Holding Conn panies Illegal.
 Albany, Feb. 20.-Mergers of corpora tions under the form of 8 holding com pany especially the great Ryan Bel mont traction merger in New York city, came in for vigorous attacks in two ways here to-day-one in hear ing before Attorney General Mayer up- on William Randolph Hearst's petition that he begin am action to prevent the consummation of the New York city combine, the other in hearing before the assembly judiciary committee on the bill of Assemblyman Shanahan, which would make holding companies illegal. After the latter hearing the committee voted to report the Shana- han bill, with two amendments, to be printed and recommitted for further consideration. The bill in it's original form provided that no corporations shall hereafter hold, directly or indi- rectly more than $100000 in par value, or more than ten per cent. in any case af oa +o+ al p11+ctap1inO pqni- tai stock of any transportation corpor- ation or of any corporation holding more than the aforesaid proportion ot the stock of any transportation corpor- ation Shares acquired in contraven- ton of the law are to be forfeited to the state. As amended the bill strikes out the $tOO000 in par value or more than" provision; the ten per cent cluase is allowed to remain. Another important amendment added makes this apply to New York city only.
 Paul B. Cravath of New York, in the course of his argument against the bill declared:
 ''The bill is viciously drawn, and the last section which gives the state pow CT to secure stock for any infraction of the law amounts to absolutely con- fiscation."
 John Hammond of New York, who said he represented banking interests in that city, said the bill would inter- fere with perfectly legitimate financial operations Mir. Hammond said:
 Tt is the most drastic measure have ever seen, and if 1t was placed on the statute books it would force corpor- ations to New Jersey
 MT. Shearn contended that the Men York merger was a common law mon' opoly of transportation-a necessity oi life, and that the action applied fol should be instituted because future competition and because monopoly en. couraged inferior service, high prices and disregard of the rights of the pub. lie.
 The opponents of the petition claim ed that the merger was expressly law full and therefore could not be "con- spiracy in restrain of trade" They cit ed various upstate cities as having been benefited by the consolidation ot railroad management.
 Delancey Nicol1 declared that the ap- plication was personal matter, with MT Hearst. He said:
 We must reflect that he was can didate for the nomination for president at the last democratic national conven- tion, and that his aspirations in that regard were defeated by MT. Ryan and MT. Belmont, the very gentlemen whose proposed measures are attacked here. ,
 He insinuated that MT. Hearst was only trying now to put the republican administration in bad light to assist his own "meteoric flight toward the governorship of this state."
 Attorney General Mayer reserved de cision, but during the hearing stated il as his opinion that there must be ex. press provisions of law authorizing ac- tion by the attorney general in a case of this character. He was of the belief that the powers of commerce proceed. ings in the name of the people are linn ited to such as have been defined by the legislature.