Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-26
CONTROL n! OF TRUSTS
Senator, CumminS' Platform in
Race for Presidency.
VIEWS EMBODIED IN BILL
Limits Corporations Without Pre-
venting Business Operations.
FAvoRs PROPER COMPETITION
Proposed Law Would Apply Only to
Companies Capitalized at
p, 1000, 900, or'More.
FAvoRs PROPER COMPETITION

The trust platform OF Senator Cummins
Of Iowa, candidate. for. the republican
nomination for President, is. embodied. III
p bill. which Mr.. Cunimins introduced to-.
day, designed to strengthen greatly the
governments anti-trust powers. The
measure would provide what 1t is claimed
would be the first authority to limit the
size of corporations, and to guard against
unfair or ruinous competition through
protracted underselling. 1t would put
into being a trades commission, into
which the present corporations bureau
would be merged, with all its present
powers.
The purpose in limiting corporations, 1t
Is set forth. Is not to prevent operation
Of business In q big way with economy
Of production, but to limit them in the
very beginning In such q way as to leave
room, at least, for others Of substantially
the same magnitude, between which
healthful competition may be preserved.
The law would apply only to corporations
capitalized at 100000 or more and not
to interstate commerce carriers.
Supports Present Laws
That the present antitrust law would
not be changed, impaired or weakened
Is made clear by a declaration that what
ever is unlawful under that law shall
continue unlawful. and that intent OF
the law is to create and maintain COM
petitive conditions in trade, ito ac-
complish which it shall be literally con-
strued."
The trade commission. would be COM
posed Of three members. to serve nine
years each. at $4,000 year and en-
powered to employ secretaries, examine
ers. experts and the like. The commits
sion would inquire into the organization
of all corporations and into the conduct
of the business of all corporations or
persons engaged in interstate commerce,
and to place before the Department Of
Justice for prosecution any violation of
either this measure of the antitrust law.
II the commission finds that any cor
poration employs or proposes to employ
an extent Of capital which would destroy
or prevent SUBSTANTIALLY competitive con-
ditions the bill provides either the COM
mission or the Department Of justice
may bring" the necessary suit to en-
Soin. The fiexibility Of this provision is
In the commissions right to prescribe a
period within which the violation must
cease.
Relating to Common Carriers.
directors and officers among corporations
gen.
erai character and would exclude dummy
or nominal directors by constituting the
persons really represented as the actual
directors and officers. 1t would exclude
from commerce all corporations which d.
rectly or Indirectly control capital stock
or exercise any other means of control in
any other corporations, and also cor.
porations capitalized at 100000 or
NH
the board Of, directors or among the Of
icers Of banking institutions.
Careful provision ID made against the
holding company that Is not itself en-
gagged In commerce. Common carriers
and manufacturing or producing enter
prises would be completely disassociated,
so that no corporation could at the same
time own eand operate a transportation
line and engage in manufacturing or pro-
ducing. The law would bar from inter-
state commerce any person or corpora
ton receiving any part of a rate or charge
for freight transportation.
Any long continued practice Of selling
commodities below actuaal cost 30 as to
destroy a competitor would be guarded
against and a uniform price required.
modified only by variations in Transports
ton costs when the selling price Includes
transportation. and by permttingss du-
and less than carload lots.
No Excess Issues
In sections to control watered stock
and excessive payment for financing and
promoting corporations are forbidden
to issue securities. in excess of the
money or property value received there
for. A latitude Of 10 per cent would be
permitted In the issuance Of stocks and
bonds, and close limitations placed %
the compsnsation for promoting ce
financing.
other parts Of the bill concern civil
remedies and criminal penalties practi.
cally a. prescribed In the antitrust law.