The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-07-23
Would Provide a Commission
to Exercise Control Over
Corporations in an Inter-
state Business.
HIS VIEWS ATTRACT
GENERAL ATTENTION
President Taft May in His
Next Message Advise Such
a Method as Championed
by Nevada Solon.
BY SYDNEY ESPEy

eY SYDNEY ESPEv
Washington. July 22-One of the
most important measures brought to
the attention of the present Congress-,
after the Canadian reciprocity and the
tariff bills. is the bill introduced by
Senator Francis Griffith Newlands of
Nevada. to establish an Interstate
Trade commission, which is planned
to exercise control over corporations
engaged in interstate commerce along
the lines of the work of the Interstate
Commerce commission.
Senator Newlands has given the
matter great deal of thought, and.
being recognized throughout the coun-
try as one of the most advanced think
ers in the Senate, his views have at
tracted a great deal of attention
among financiers and in the press.
Since the introduction of the bill a
number of men prominent in the
world of finance have written to him,
some of them commencing the bill.
others discussing it's various features,
and several have been to Washington
to confer with him. not the least of
whom is George w. Perkins, who re-
Gently retired from the firm of J. p.
Morgan & Co., to devote himself to
[philanthropic work.
What Taft May Do.
/ President Taft has III the past rec
law. and while he may not go SO far
as to adopt the Newiands trade COM
mission idea, it is not improbable that
in his next annual message he will ex-
pend his own plan for the national
incorporation of the big corporations
along the lines suggested by the Neva-
da senator.
The Interstate Commerce act was
passed before Senator Newlands en-
tered the house of representatives 18
years ago. but he played q prominent
part in shaping the legislation which
vitalized the commission and extend
ed its powers, both while in the house,
and in the Senate as a member OF
the committee on Interstate Com.
merce.
The Newlands bill provides for a
| commission of five members Of whom
no more than three shall be OF the
same political party. Recognizing the
value of the present bureau OF corpor-
ations and its staff Of trained investi.
gators who are as good In their line
as those of the Interstate Commerce
commission, Senator Newlands pro.
poses to transfer the bureau OF corpor-
ations to the Interstate Trade COM
mission, and that the commissioner
of corporations shall be ex-officialy q
member of the commission for the
| first two years. To avoid loading it
down with unnecessary details and
minor matters, 1t Is proposed that the
commission shall have Jurisdiction on.
ly over corporations whose gross an
nual receipts exceed s5.000,000, al
though smaller corporations may
place themselves voluntarily under
the Jurisdiction of the commission II
they wish to benefit by the law.
The corporations are to furnish
statements showing such facts as to
organization, financial condition and
! interpretations as may be prescribed
! by regulations adopted by the commits
sion, and such corporations are to be
registered and known as United
States Registered Companies which
fact may be used in connection with
their securities, operations. and adver-
tising They will be required to re-
port from time to time and TO grant
access to the agents of the commits
sion to all their records, accounts, and
other books and papers. Such infor-
nation regarding corporations OF
iuuasi-public character as the commits
sion may deem proper is to be made
public. A drastic provision gives
authority TO the commission to revoke
| and cancel the registration of any
corporation on the ground of violation
of any juricial decree rendered under
| the Sherman antitrust act or of the
| Wilson act, or of improper financial
Organization and issuing of securities,
the use of materially unfair or op-
pressive methods of competition or
for the acceptance Of determinations
rebates or concessions from railroads,
"or of such other material improper
/ business transaction as may from
time to time be prohibited by regu-
| lation."
| The commission is authorized to re-
auire any corporation held to be ma
| terially over-capitalized. to readjust
its securities or assets to correct such
5over-capitaiizafion. In addition to
cancellation of registration, the COM
mission is authorized to forbid such
| corporations from engaging in inter-
state commerce.