Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-26
Senator Newlands Outlines
Program for the Democrats.
LETTER TO CHAMP CLARK
Nevada Senator Believes Tariff
Schedules Should Be Revised.
RAILWAY STOCKS AND BONDS
Legislation Regulating Their Issue
Suggested-Declaration for Fed
eral Banking System.

Suggested-Declaration for Fed
eral Banking System.
1t is the duty of the incoming demo
cratic House to show the good faith OF
the democratic party by passing bill.
carrying out the pledges of the party a
the extra session beginning April 4, ant
at the next regular session OF Congress
declares Senator Newlands Of Nevada
This view was expressed in a letter ad-
dressed to Champ Clark, the prospective
Speaker Of the House, which was made
public last night.
Senator Newiands takes 1t for granted
that the democrats will pass bill in the
House revising the tariff, or some Of the
tariff schedules, as well as passing upon
the reciprocity treaty with Canada. He
therefore gives his attention to matters
outside the tariff. The reform measures
which should be taken up as soon as pos
sible by the House. he says, relate prin-
cipally to the three branches Of interstate
commerce, interstate transportation, OF
the railroads; interstate trade, or the
trusts, and interstate exchange, or bank
ing.
Question Of Transportation.
The democrats, declares Senator New
lands, have supported all the various
measures amendatory Of the interstate
commerce act which have been passed.
He says:
''AI Of our platform requirements on
the transportation question have been
complied with except those relating to q
~ he nh and
to the control Of stock and bond issues
of railroads engaged in interstate COM
merce. The democratic party should pass
bill embracing these subjects.
I'm order to combine numerous state
railroads into a great Interstate sys-
tenn 1t has become the custom OF the
railroads to organize holding compan-
les under the laws of a single state,
in whose legislation the other states
comprised within the railroad system
have no participation. 1t seems. to
me that in railroad corporate organtza-
ton we should pursue, so far as prac-
ticable. the federal system which pre-
walls in government, and that IL 1t is
for the purpose. of creating an inter-
stata system of transportation. 1t
should be done through the organixa-
tion Of national holding companies
making of which all the states inter-
ested can participate. instead of under
a state Law. in the legislation Of
which only the people of a single state
can participate. We will thus, while
preserving our state railroads as corr
porate units. relying upon their re-
spective state for their organization
and powers, be able to federalize them
under a federal law for interstate pur-
poses. The stock and bond issues Of
such holding companies. of course.
should be subject to the control OF
the interstate commerce commission"
Discusses the Trusts,
Turning to the question of the trusts.
Senator Newlands says.
The administration of the antitrust
act has been lame and hating. changing
with the shifting incumbents Of the At
torney Generals ONCE, and according to
the requirements of political exigencies.
AS result. practically no progress has
been made in the control of the trusts,
and while q few suits have been prose-
cuted to q successful result and others
are now in process of prosecution. there
exist today over 500 trust organizations
OF enormous capitalization practically
without regulation or control Expert
ence should teach us that with reference
to interstate trade a commission or
board should be organized, similar to the
interstate commerce commission, with
powers Of Investigation, Of condemnation
anu VI u MISREPRESENTATION, ana Win T.
view, while preserving the good arising
from commercial combination. to curing
the perntcious practices connected there
with.
Such legislation will be necessary.
whatever may be the action Of the
Supreme Court upon the pending cases
II such combinations are held to be legal.
the regulation Of their prices and prac-
tees becomes public necessity: II they
are held to be illegal. then there should
hn Ia vuyh@ nk yxyhf tivIov
large capitalization and the ownership OF
many plants by q single corporation en-
gagged in interstate trade. will protect the
public from the abuses attendant upon
such large capitalization and the oppreS-
sion exercised by 1t"
Federal System Of Banking.
Senator Newlands advocates the en-
actment Of q law to federalize the
systeu OF banking. just as the sys-
tenn Of transportation Is federalized.
In each state he would organize a ma
tional reserve association, in which all
the banks of the states, both national
and state. engaged in interstate ex-
change should be stockholders, and to
which should be transferred the note
issuing functions now enjoyed by the
national banks. with powers OF emer-
sency circulation upon proper secur-
ity.
such reserve associations" says
Senator Newlands, should have DOW
ers Of investigating the banks con-
shutting the membership. and there
should be some means devised for the
prompt payment Of the depositors Of
any insolvent bank, q member Of the
association. by taking over its assets
the association. Such reserve ASSOC
citation should be federalized through
an annual convention at washington
OF the presidents thereof, with power
to select eight members Of a national
banking commission. to be authorized
by law, one from each judicial circuit.
who. together with seven others,
consisting Of the Secretary Of the
Treasury. Postmaster General, Attor-
ney General and the controller Of the
currency. and three others, appointed
by the President. would CONSTITUTES a
national banking commission, advis-
DRY In character both to the President
and to Congress. with powers OF In
vestigation and Of Recommendation as
to legislation"
Devoted to Speculation.
Senator Newlands points out that many
large banks. both national and state, have
forgotten their true function. that of ex-
change. and have been turned over to the
aid of promotion and speculation. SUI.
hcient reserves. particularly in the case
Of state banks, have not been required.
He advocates the creation of a bulge,
commission composed OF the chairmen
of the appropriation committees OF The
House, to cooperate with the committee
on public expenditures Of the Senate and