Waterbury evening Democrat., 1907-11-11
PROMPTS ROOSEVELT
President Gets Ideas He Likes From a Chicago Lawyer.
MESSAGE MAY EMBoDY THEM
Eugene E. Prussing Discusses Corpo. ration Reforms With Chief Magis-
 trate and Gives Latter Several Prac-
 ticaI Suggestions In Concrete Form"

trate and Gives Latter Several Prac-
 tieaI Suggestions In Concrete Form"
 Washington, Nov. Il. = Eugene E., 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 reforms. The president read and. discussed with interest a brief statement which Mr. Prussing submit ted. At the end of the interview the president said:
 And now, my dear sir, want to | pay you a compliment. 1 did not eX- pect you to give me single thing. In. stead of that you have given me sev. eral practical suggestions in concrete | form, some of which are entirely new. I shall study them with pleasure. may say you will soon see them re- | fiected somewhere"
 The statement submitted by MT. Prussing reads:
 Currency reform, antitrust law
 
 naturally will claim the first places in congress- attention. General corpora. ton reform in its various phases may fairly be classed second in importance. Long and varied experience in corpora. tion matters leads me to offer these suggestions.
 In Harmony With State Rights.
 ''The first question, that of jurisdic. l tion 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 state rights and loyal government as well as the senti. ments based upon these, even if ex. treme
 "National control of interstate com. merce corporations, as distinguished from national incorporation of all Of most corporations, will be readily granted by most men of both parties. Compulsory publicity of accounts, tho subjection of books, papers and plans to inspection, etc., of government off. cials will be easily accomplished.
 Federalists Will Approve New Step.
 "The new step advised by the Asso. ciation 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 compel the real owners of corpora tion to do business in their own name can be achieved by requiring the cor. poration so owning stock in another and the corporation in which it owns stock to list such owners and stock holders respectively in every case in 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 now are, while the public in turn will have knowledge of whom it is dealing with and eau protect itself.
 The Proposed Change.
 "The change of all state banks and trust companies to national banks, which can be accomplished by a single 1 amendment of the national banking act, will also be popular and can be along states rights lines. The propos. ed change is this: Give national banks two additional powers and their conse- quences.
 'First.-TO accept and execute trusts by complying with the general state laws on that subject wherever they exist and in the District of Columbia.
 'Second.-TO accept trust. savings and time deposits and tO keep separate accounts of the totals of these-making rules for proper notices of withdraw als-dnd allow a small percentage of reserves as to these deposits and also the making of solid bond and mort gage and other savings bank invest ments 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.
 Appoint Commission. ss(.o at fha svaparaI co-no-atiOn uroI.- | lem in a similar manner. Enlist the states rights men on your side. Keep the subject of incorporation and ordi- nary control locaI-a state concern make the local laws harmonious if pos sibie by appointing a commission to investigate the entire subject Get the best talent Root. Choate. Dillon. Nor awetz. GrOsscup and others of that type will be glad tO serve for patriotic reasons. and a result will te achieved in the form Of a code based on prin- ciples and experience suited to our dual government and varied c0ndi- tions. just as it was in Germany in 1S70-75 fin the enactment of laws by Prussia and the other states of the em- pire which have served the purpose and stood the test Of time