The free lance. (Fredericksburg, Va.) 1885-1926, 1907-11-12
.REfORNER'S VIEWS
Prominent Lawyer DISCUSSES
Issues With President.
WOULD ABOLISH TRUST cos.
Proposes to Change State Banks and
Trust Companies to National Banks
and Supervise Corporations Through
the Various States.

the Various States.
Washington. Nov. 11.-Eugene n.
PrussIng. the well-known Chicago law
yer. for three years president OF the
Citizens association there. called on
the president to present his views on
corporate reform. The president read
ard discussed with interest the brief
statement which MIR. Prussing sub
mittod. 1t follows:
Currency reform. antitrust law
amendments and railroad regulation
naturally will claim the first places In
congress attention. general corpora
ton reform in its various phases, may
fairly be cassed second in Importance.
THE first question. that OF jurisdic-
ton Of the federal government, VIII In
each instance be the challenge OF the
opposition. Successful effort there
fore must be along the line OF the
least resistance. that is to say. In har-
mony with the principles OF states
rights and loyal government as well
as the sentiments based upon these
even II extreme.
National control OF interstate COM
merce corporations. rs distinguished
from national incorporation Of all or
most corporations. will be readily
granted By most men OF both parties.
Compulsory publicity Of accounts,
the subsection Of books. papers and
plans to inspection. etc, OF govern
ment officials Will easily be accom-
plshed
THE new step advised by the Asso-
citation OF Attorneys General, slightly
modified. will be in the right direction
and will be approved by states rights
men and fedcralists alike. The asso-
citation recommends that the right to
hold stock In any other corporation
should BE- denied TO all interstate COM
u cree corporations. II seems to me
that the purpose OF this. namely, TO
compel the real owners OF a corpora
ton to do business in their own name.
can be achieved by requiring the cor
poration 20 owning stock in another
and the corporation in which 1t owns
stock to list such owners and stock
holders respectively in every case in
the department OF commerce. thus
honest holding companies will be per-
mltted. and yet protected against pos
sible assault OF local taxation or other
unjusuy discriminating laws, just as
national banks now IRE. while the
public in sirn will have knowledge Of
whom It is dealing with and can pro-
toct itself
The change Of all state banks and
trust companies to national banks,
which can bc accomplished by a sin
gle amendment OF the national bank
Ing act, will also be peculiar, and can
be along states rights lines.
THE proposed change is this: Give
national banks two additional powers
and their consequences.
"First-To accept and execute
trusts by complying with the general
state laws on that subject wherever
they exist and in the District of Co
lunbia.
"Second-To accept trust. savings
ana time deposits and to keep sepa-
rate accounts Of the total Of these
making proper rules for notices OF
allow a smaller per
centage Of reserves as to these de-
posts. and also the making Of solid
bond and mortgage and other savings
bank investments OF the funds so re
ceived.
Thus every national bank be-
comes the full competitor OF state
banks and trust companies. and soon
the latter will be forced to become
national banks.
go at the general corporation
problem in n similar manner Enlist
the states rights men on your side.
Keep the subject OF incorporation and
ordinary control local-a state con
cern-make the local laws harmonious
II possible by appointing a commits
sion to investigate the entire subject
At the end Of the interview the pres
ident said: And now. my dear sir,
want to pay you a compliment |
did not expect you to give me a sin
gle thing-instead Of that you have
given me several practical sugges-
tions in concrete form. some OF
which are Entirely new. shall study
them with pleasure. ! may say you
will soon see them reflected some
where"