Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-11-11
PLANS FOR REFORM.
Chicago Attorney Makes Extended
Suggestions to President.
CONSERVATIVE MIDDLE GROUND
He Favors National Control Instead of
EatiOnal Incorporation.
BANKS TO DO TRUST BUSINESS
CONSERVATIVE MIDDLE GROUND
BANKS TO DO TRUST BUSNEi
National Concerns TO Be Allowed Same
Privileges as Trust Companies.
COMPLIMENT FROM EXECUTIVE
Mr.. Roosevelt saws plan Contains
several Practical Suggestions in
Concrete FOrIn--SOme of
Them Entirely New.

Them Enureiy New
WASHINGTON, Nov. l0.-Eugene L.
Prussng. the well-known Chicago lawyer,
for three years president OF the Citizens
association there, called on the presidenf
yesterday to present his views on corporate
reforms.
The president read and discussed with
interest the brief statement which Mr..
Prussing submitted It follows:
Currency reform, antitrust law amend
ments and railroad regulation naturally viii
claim the first places in congress attention,
general corporation reform IN its various
phases may fairly be classed second in i'm
portanoe. Long and varied experience in
corporation matter leads me to offer these
suggestions:
THE FIRST question, that Of jurisdiction
OF the federal government will In each in
stance be the challenge of the opposition.
Successful effort, therefore must be along
the line Of least resistance, that il to say
within the principles of states rights and
government, as we'll as the sentiments
based upon these, even If extreme.
National control of interstate commerce
corporations, distinguished from national ia
corporation Of all or most cor yorations, W Il
be readily granted by most men of both
parties.
Compulsory publicity of accounts. the
subsection Of books papers and plans to in
spection, etc, Of government officials, will
easily be accomplished.
Stockholders to BE Listed.
THE new step advised by the association
OF attorneys general, slightly modified, will
be in the right direction and will be APP
proved by states rights men and federal
lists alike. The as ocia ion rec m ends tia
the riAht to hold 1t ok IN any other co. pora.
tion should be denied TO all interstate com.
merce corporations 1t seems to me tina
the purpose OF this, namely, to compel the
real owners Of a corporation to do business
In their own names, can be achieved by
requiring the corporation owning stock in
another, and the corporation In which II
owns stock, TO list such owners and stock
holdings, respectively. in every case, in the
Department OF Commerce. and Labor. Thus
honest holding companies will be permitted
and yet protected against possible assault
of local taxation or other unjustly discrim-
mating laws. just as national banks are
now, while the public in turn win have
knowledge of whom II is dealing with and
can protect itself
Banks to Do Trust Business,
The change OF state banks and trust
compani 8 to national banks, which can
be accomplished by single amendmrn;
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
~ UH HF uNWrnNN
TO accept trust savings and time
deposits and to keep separate accoGnts
FOR notices OF Withdrawals and allow as !
small percentage Of reserves as to these
deposits, and also the making of solid !
ceIved.
Thus every national bank becomes the |
fun competitor OF state banks and trust |
companies and soon the latter will be forced |
TO become national banks.
Problem of Corporations.
go at the general corporation prcbl I'm |
in a similar manner Enlist the stat IS
rights men on your side. Keep the sub |
ject OF Incorporation and ordinary con- |
trol--a state concern: make the local Laws |
harmoniSe, II possible by appointing |
commission TO investigate the entire sub
ject Get the best talent-Root, Oh ate.
Dillon, Morawetz and others Of that type |
who will be glad to serve for patriotic |
reasons-and result viii be achieved /
In the form OF a code based on principles
and experiences suited to our dual gov
sn Nent and varied conditions lust as II
was n Germany In lS7O-75. IN the en-
actment Of laws by Prussia and the other
states OF the empire which have seryed
the purpose and stood the test of time
Il am sending my paper with request
for comments to the members of the
American Bar association and to the great
majority or names In the directory cf
directors. thus reaching the thoushtfuI
persons Immediately In touch with the
situation.
Tho replies already received indicate
an Intelligent. generous and critical in
tsrest and no doubt good fruit in the shape
OF sue Sestions win result"
At the end OF the interview the president
said:
And now, my dear sir. want 20 pay
you compliment I did not expect sou
40 give me single thing; instcud Of
mat you have given me several practical
suggestions In concrete form. some OIL
winch are entirely new l shall study
them with pleasure. l may say you viii
soon see them reflected somewhere"