The Montgomery advertiser., 1907-11-11
CORPORATE REFORMS
EUGENE E. PRUssING GIVES ROoSE-
 WELT SOME ADVICE.
Change of state Banks and Trust Com- panies To National Banks is Discussed With the
 President.

Washington, Nov. 10--Eugene k Prussing, the well known Chicago law yer, for three years president of the Citizens Association there, called on the President yesterday to present his views on corporate reforms. The Pres ident read and discussed with inter- est the brief abatement which Mfr Prussing submitted.
 1t follows:
 s'Currency reform, antitrust law
 amendments and the railroad regula- tIon naturally will claim the first place in Congress's attention. General cor pofation reform In It's various phases, may fairly be classed as second in i'm portance. Long and varied experience in corporation matters leads rue to Uf- fer these suggestions:
 National control of interstate com- morce corporations, as distinguished from national interpretations of all or most corporations, will he readily granted by most men of both par ties.
 Compulsory publicity of accounts. the subjectidn of books. papers and plans to inspection, etc.. of government officials will easily be accomplished.
 "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 Federalists alike. The Asso- ciation recommends that the right to hold stock in any other corporation should be denied to all interstate com merce corporations. It seems to me that the purpose of this, namely, to com mel the real owners of a corporation to do business in their own name. can be achieved by requiring the corpora tton so owning stock in another and inc corporation in which it owns stock. to list such owners and stockholders respectively in every case In the De" partment of Commerce. Thus honest holding companies will be permitted and yet protected against possible as- sault of local taxation or other unjust H- discriminating laws. just as nation al banks now are, while the public ID turn will have knowledge of whom IL is dealing with and can protect t- self.
 "The change of State banks and trust companies to national banks, which can be accomplished by single amend ment of the national banking act, VIII also be popular and can come aiohs States rights lines ,,.
 "The proposed change Is this: Give national banks two additional powers and their consequences
 "l To accept and execute trusts, ny with the general State laws on that subject wherever they exist ana 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 withdrawals. and allow as small a percentage of reserve of these deposits and also the making of solid bond and mortgage and other saving bank investments of the funds so received.
 "Go at the general corporation prob lem in a similar manner. Enlist the States rights men on your side-keep the subject of incorporation and ordi- nary control local-make the local law9 if possible by appointing a to investigate the entire subiect, Get the best talent; Root, Choate, Dillon. Morawetz. Grosscup 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 experiences suited to our dual government and va ried conditiOns7just as it was in Ger many in iS70-76 In the enactment of laws by Prussia and the other States oF the empire which have served the purpose and stood the test of time.
 "I am sending my paper with a re- ouest for comments to the members of the American Bar Association and to the great majority of names in the di- rectory of directors, thus reaching the persons immediately in touch with the thing itself. The re- niles already received indicate an intel iigent generous and critical interest and no doubt good fruit in the shape of suggestions will result"
 At the end of the interview. the President said:
 Ana now, my dear sir, want to pay you a compliment. I did not ex- pcct you to GNe me a single thIng--in- stead cf that yoa have given me sew era. practical suggestions in concrete form. some of which are entirely new.
 T shall study them with pleasure, I