Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1907-11-16

REFORMS
NEW IDEAS PRESENTED
TO ROOSEVELT.
ANTITRUST LAW AMENDMENTS,
CURRENCY REFORMS AND
RAILROAD REGULATION.

/ Eugene I. Prussing, a wellknoWn
Chicago lawyer, for three years presi-
dent of the Citizens association there,
called on the president recently to
/ present his views on corporate re-
forms. The president read and dis
cussed with interest the brief state
ment which Mr.. Prussing submitted
! 1t follows:
currency reform, antitrust law
amendments and railroad regulation
naturally will first claim the attention
of congress.
General corporation reform in its
various phases may fairly be classed
second in Importance. Long and va
! rted experience in corporation matters
leads me to offer these suggestions
THE first question, that of jurisdfc-
ton of the federal government, will 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 state
rights and local government as we'll
as the sentiments based upon these,
even if extreme.
National control of interstate COM
merce corporations, as 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-
plished.
Limits Holding of Stock.
THE new step advised by the asso-
citation of attorneys general, slightly
modified, will be in the right direction,
and will be approved by state rights
men and federalists alike. The asso-
citation recommends that the right to
hold stock in any other corporation
should be denied to all interstate com
merce corporations. 1t seems to me
that the purpose of this, namely, to
compel the real owners of corpora
ton to do business in their own name,
can be achieved by requiring the cor
poration owning stock in another, and
the corporation in which it owns
stock, to list such owners and stock
holdings, respectively, in every case
with the department of commerce
Thus honest holding companies will be
permitted, and yet protected against
pVeoiNl~ oes~ult- vi Iocal to-.o-tior, or
other unjustly discriminating laws,
just as national banks are now, while
the public in turn will have knowledge
of whom it is dealing with and can
protect itself.
THE change of state banks and
trust companies to national banks,
which can be accomplished by a single
amendment of the national banking
act, will also be popular and can be
along state rights"
More Power to National Banks.
The proposed change is this:
Give national banks two additional
powers and their consequences.
q. To accept and execute trusts, by
complying with the general state laws
on that subject, wherever they exist
anu III lllS DlSl1 lCI vi SOlumDld.
20. To accept trust, savings and
time deposits and to keep separate
accounts of the total of these, making
proper rules for notices of with
drawals, and allow a small percentage
of reserves as to these deposits, and
also the making of solid bond and
mortgage and other savings bank in
Of no
Thus every national bank becomes
the full competitor of trust companies
and soon the latter will be forced to
become national banks.
Go at the general corporation prob
lem in a similar manner. Enlist the
state representative men, on your
side. Keep the subject of incorpora-
ton and ordinary control a state con-
Germ; make the local laws harmonic
if possible, by appointing a commits
sion to investigate the entire subject
Get the best talent; Root, Choate. Dill
Ion and others of that type will be
glad to serve for patriotic reasons, and
a result will be achieved in the form
of code based on principles and ex-
periences suited to our dual govern
ment and varied conditions-just as it
was in Germany in 1S70-75 in the en-
aCtment of laws by Prussia and the
other states of the empire which have
served the purpose and stood the test
of time"
Praised by Roosevelt.
At the end of the interview the
president said:
"And now, my dear sir, want to
pay you a compliment l did not ex-
pect you to give me single thing
instead of that you have given me sew
eral practical suggestions in concrete