Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-11-11
new VIEWS ON.
CORPORATE
REFORMS
NOTED CHICAGO LAWYER
INTERESTS ROOSEVELT
Plan Suggested Whereby
States Rights and FederaIiSts
Advocates viii Work To-
gether for Legislation.
IBy Morning journal Special Leased wIr..r

gethef TOR Legislation,
LBy Morning journal special Leased wire.r
Washington, Nov. 1O.--Eugene E.
Prussing, a 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 In
terest the brief statement which Mr..
prussing submitted II follows:
currency reform. antitrust law
amendments and railroad regulation
naturally will claim the first place in
congressional action. General corpor-
alton reform In It's various phases may
fairly be classed second in impor-
tance. Long and varied experience In
corporation matters leads me to offer
these suggestions:
THE first question. that Of iurisdic-
tion Of the federal government viii
In each Instance be a challenge TO
the opposition, Successful effort,
therefore. must be along the line OF
the least resistance: that Is to say,
In harmony with the principles OF
state rights and local government as
NANi as Ailf NtHAilltItN ndttn Oh AiltTtt
even il extreme national control OF
interstate commerce corporations, as
distinguished from national incorpora-
ton Of all or most corporations. will
be readily granted by most men OF
both parties.
Compulsory publicity OF acts. the
subsection of books. papers and plans,
10 inspection. etc, OF government Of
ficlals will easily be accomplished.
~ nd lN ha
citation of attorneys general. slightly
modified, will be in the right direction
ana will be approved by state rights
men and federalists alike. The. asso-
citation recommends that the right %
hold stock In any other corporation
should be denied to all Interstate COM
merce corporations. IL seems To me
| that the purpose of this, namely. To
compel the real owners ot a corpora
tion 90 do Luslness In their own name.
can be achieved by requiring the corr
Operation owning stock In another and
| the corporation IN which IL owns
stock, 10 list such owners and stock
holdings, respectively. In every case IN
the department of commerce. Thus
security holding companies will be
permitted and yet protected against
possible loss by taxation or other un-
justly discriminating laws. just as ma
tional banking laws are now. while the
public In turn will have knowledge OF
whom II is dealing with. and can pro-
tect itself
"rhe change of state banks and
trust companies to national banks
which can be 50 accomplished by a
single amendment OF the national
banking act, will also be popular and
can be along state rights lines.
'''rhe proposed change Is this
give national banks two addi-
tional powers and their consequences.
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 total of those. making
proper rules for notices of withdraw
ais and allow as small a 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 compa-
nies and soon the latter will be forced
TO become national banks.
Go at the general corporation
problem In a similar manner Enlist
the state rights men on your side.
Keep the side Of Incorporation and or
binary control-a state concern; make
the local laws harmonize II possible.
by appointing a commission To inyesti-
gate the entire subject Get the best
talent: Root. ChOate. Dillon and 9TH
ers OF that type will be glad TO serve
Tor patriotic reasons, and result will
be achieved in the form OF code based
on principles ana expenditures suited
20 our dual government and varied
ar Il was In Germany
In tSIO-'76. In the enc ctment Of laws
by Prussia and the other states of
the empire which have served the pur-
pose and stood the test OF time.
Il am sending my paper with re-
quest for comments TO the members
Of the American Bar association, and
to the great majority Of names In the
directory OF directors. thus reaching
thoughtful persons Immediately la
touch with the situation. The replies
already received Indicate an intelli-
gent generous and critical Interest.
aud no doubt good fruit In the shape
of suggestions viii result"
At the end of the interview the
president said:
And now. my dear sir. ! want TO
pay you a compliment l did not eN-
pecf you % give me a single thing. In
stead Of that sou have given me sew
crul practical suggestions In concrete
form-some OF which are entirely
new. I shall study them with pleas
ufe. I may say you will soon see
hem reflected sumeW here