The Birmingham age-herald., 1911-07-23
MUCH COMMENT ON
 NEW[AND'S PLAN Provides for Interstate
 Trade Commission TO CONTROL TRUSTS Would Occupy Same Relation to Corporations as Does Inter.
 state Commerce Commis-
 sion to Railroads
TO CONTROL TRUSTS
Fly SIDNEY EPSEY

By SlDNEf EHSEh
 Washington, July 2.-(special)-One of the most important measures brought to the attention of the present Congress, after the Canadian reciprocity and tho tariff bills, Is the bill introduced by sen- ator Francis Griffith Newlands of Nevada. to establish an interstate trade comnis- sion, which is planned to exercise con- tro over corporations engaged in inter- state commerce along the lines of the work of the Interstate Commerce Con- mission.
 Senator Newlands has given the matter a great deal of thought, and, being rec ognized throughout the country as one of the most advanced thinkers in the Senate, his views have attracted great deal of attention among financiers and in the press. Since the introduction of the bill g. number of men prominent in the world of finance have written to him, some of the commenting the bill, others discussing it's various features, and sev- eral have been to Washington to confer with him, not the least of whom is George w. Perkins, who recently retired from the firm of J. P. Morgan & Co.,, to devote himself to philanthropic work.
 President Taft has in the past recom- mended national incorporation Jaw, and while he may not go so far as to adopt the Newlands trade commission idea, it is not improbable that in his next annual message he will expand his own plan for the national incorporation of the big cor poration somewhat along the lines sug- gested by the Nevada senator.
 The interstate commerce act was passed before Senator Newlands entered the House of Representatives Is years ago, but he played prominent part In shaping the legislation which vitalized the com mission and extended Its powers, both while in the House and In the Senate as a member of the committee on interstate commerce.
 The Newlands bill provides for a com mission of five members, of whom more than three shall be of the same po- litical party. Recognizing the value of the present Bureau of Corporations and its staff of trained investigators, who are as good in their line as those of the h. terstate Commerce Commission, Senator Newlands proposes to transfer the Blu reau of Corporations to the Interstate Trade Commission, and the commissioner of corporations shall be ex-officlo a mem- Der 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 over corporations whose gross annual receipts exceed S5,O00,0 000, ai- though smaller corporations may place themselves voluntarily under the jurisdic- ton of the commission If they wish to benefit by the law.
 The corporations are to furnish state ments showing such facts as to organiza- AL as may be prescribed by regulations adopted by the commission, and such cor porations are to be registered and known as United States Registered Commis- sion,' which fact may be used in con nection with their securities, operations and advertising They will be required to report from time to time and to grant access to the agents of the commission to all their records, accounts and other books and papers. Such information re- garding corporations of a quasi-public character as the commission may deem proper is to be made public. A drastic provision gives authority to the commits sion to revoke and cancel the registration of any corporation on the ground of vio- lation of any judiical decree rendered un- der the sherman antitrust act or of the Wilson act or of improper financial or ganization and issuing of securities, the use of materially unfair or oppressive methods of competition or for the accept ance of discriminations, rebates or con sessions from railroads, "or of such other material improper business transaction az may from time to time be prohibited by regulation ss s~ ei ass The commission is authorized to require any corporation held to be materially over capitalized, to readjust it's securf- ties or assets to correct such over-capi- talzation. In addition to cancellation of registration the commission is authorized to forbid such corporations from engag- ing in interstate commerce.
 Senator Newlands takes the ground that the states. by the incorporation in the constitution of the provision giving the federal government Jurisdiction over in terstate commerce, intended that the fed eral government should exercise such tu rsdiction. which the latter has not done to its full extent. He holds there is no doubt of the power of the federal govern ment to regulate the corporations by means of a commission as proposed, and does not believe the states will object, as they long since indicated their desire to rest the matter in the hands of the fed | eral government.
 Senator Clapp, who is chairman of tho committee on interstate commerce, heart | fly approves a measure on the lines pro- posed by Senator Newlands, and the plan | is regarded with favor by Commissioner of Corporations Herbert Knox smith.