The Havre herald. [volume] (Havre, Mont.) 1904-1908, 1907-11-15
| RESENTSNEW IDEAS.
TO ROOSEVELT ON REFORMS
THAT LOOK GOOD To HIM.
Provides for National Control Of In.
terstate Commerce Corporation,
Compulsory Publicity of Accounts
Change All State Banks and Trust
Companies to National Banks.

Eugene T. Prussing, a well-known
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
ried experience in corporation matters
leads me to offer these suggestions:
1.-THE first question, that of jurisdic-
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 well
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.
1.-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 a 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
holdings, respectively, in every case
with the department Of commerce.
Thus honest holding companies will be
permitted, and yet protected against
possible assault Of local taxation 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 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.
81. To accept and execute trusts, by
complying with the general state laws
on that subject, wherever they exist,
and in the District of Columbia.
'2. 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 small percentage
of reserves as to these deposits, and
also the making of solid bond and
mortgage and other savings bank in
vestments of the funds so received.
Thus every national bank becomes
the full competitor of trust companies
and soon the latter will be forced tc
become national banks.
go at the general corporation prob
lem in similar manner. Enlist the
state representative men on youl
side. Keep the subject of incorpora
ton and ordinary control state con
Germ; make the local laws harmonic
if possible, by appointing 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, anC
a result will be achieved in the form
of a code based on principles and ex
periences suited to our dual govern
ment and varied conditions-just as i
was in Germany in 1870-75 in the en-
actment of laws by Prussia and thu
other states of the empire which hav'
served the purpose and stood the tes
of time
Praised by Roosevelt.
At the end Of the interview tn
president said:
"And now, my dear sir, I want t
pay you a compliment. I did not e1
peet you to give me a single thing
instead of that you have given me sey
eral practical suggestions in concret
form-some of which are entirel
new. I shall study them with pleas
ure. I may say you will soon sc
them reflected somewhere"