The daily morning journal and courier., 1907-11-11
CORPORATE REFORMS
President of Chicago Citizens Assocl-
 atIon Sees President.

Washington, Nov 1O-Eugene E. 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 president read and discussed with interest the statement which Mir. Prus- sing submitted, which included the fol- lowing:
 Currency reform, antitrust law amendments and railroad regulation naturally will claim the first places in congress attention, general corporation reform in it's various phases, may fair ly be classed second in importance.
 'The first question, that of iurlsdlc- ton of the federal government, will in each instance be the challenge of the opposition. Successful effort, therefore, must be along the line of the least re- sistance, that is to say, in harmony with the principles of states rights and loyal government, as well as the senti- ments based upon these, even if it is 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 subjection of books, papers and plans to inspection, etc., of govern ment officials win be easily accom- plished.
 'The new step advised by the As- sociation of Attorneys General, slight ly modified, will be In the right direc- i ton and will be approved by states rights men and federalsts alike. The association recommends that the right to hold stock in any other corporation should be denied to all interstate com~ merce corporations.
 Tt seems to me that the purpose of ] this namely, to compel the real owners 1 of corporation to do business in their l own name, can be achieved by reouir- ing the corporation so owning stock in another and the corporation in whcih 1t owns stock to list such owners and stock holdings respectively in every case in the department of commerce. ] thus holding companies will be per- mitted and yet protected against pos ' sible unjustly discriminating laws. The change of all 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 states rights lines
 The proposed change is this: Give national banks two additional powers. and their consequences:
 ITO accept and execute trusts by complying with the general state laws on that subject wherever they exist and in the district of Colum- bia lt,1E EIyETEyW
 "2-To accept trust, savings and time deposits and to keep separate accounts of the totals of these, mak- ing rules for proper notices of with drawals, and allow small percent age of reserves as to these deposits, and also the making of solid bond and mortgage and other savings band in- vestments of the funds so received.
 Thus every national bank becomes 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 prob- lem in a similar manner. Enlist the States Rights men on your side. Keep
 the subject of incorporation and ordi- nary control local, state concern, , make the local laws harmonious if pos. sible by appointing commission to in-
 vestigate the entire subject. Get the best talent, Root Choate Dillon, Morawetz, Grosscup and others ? of that type will be glad to serve fol patriotic reasons, and a result will b( achieved in the form of code based on principles and experience suited tC our dual government and varied condi- tions."
 The presidents said to have taker z very kindly to several of the sugges