Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-02-27
NEWANT|-TRUST
BILL IS FILED BY
sen. CUMM|NS
Iowa Senator Introduces a
Measure Designed to Sup
plement Sherman Law
and Strengthen Powers.
TRADE COMMISSION
is HIS PROPOSAL

Bill Provides for New Body
to be Composed of Three
Members to Serve Nine
Years at $4,000 a Year.
Washington, D. c., Feb. 26.-The
trust platform of Senator Cummins of
Iowa. candidate for the republican
nomination for president is embodied
in a bill which Mr. Cummins intro.
duced today, designed to strengthen
greatly the governments antitrust
powers. The measure would provide
what it is said would be the first
authority to limit the size Of corpora
tions to guard against unfair or ruin
Gus competition through protected un.
derselling. 1t would put into being a
trades commission into which the
present corporations bureau would be
merged with all it's present powers.
The purpose in limiting corporations,
it is set forth, is not to prevent opera
ion of business in big way with
economy of production, but to limit
hem in the very beginning in such a
way as to leave room at least for
others of substantially the same magni-
tude in which healthful competition
may be preserved. The law would
apply only to corporations capitalized
at SIS ,OOO, 900 or more and not interstate
commerce common carriers. That
I the present aptistrust law would not be
changed, impaired or weakened is
made clear by declaration that what
ever is unlawful under that law shall
continue unlawful and that the intent
of the law is to create and maintain
competitive conditions in trade Ito ac-
complish which it shall be, literally
construed"
$4,000 Salary For Commissioners
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, ex-
aminers experts and the like. The
commission 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 be-
fore the department of justice for
prosecution any violation of either this
measure or the antitrust law.
If the commission finds that any
corporation employs, or proposes to
employ. an extent Of capital which
would destroy or prevent substantially
competitive conditions, the bill pro-
vides that either the commission or
the department of justice may bring
the necessary suit to enjoin. The
f1exibility Of this provision is in the
commissions right to prescribe a per-
I iod in which the violation must cease.
The measure would prohibit common
directors and officers among corpora
tions carrying on a business Of the
same general character and would ex-
clude dummy or nominal directors by.
constituting the persons really rep
resented as the actual directors and Of
ficers. It would exclude from com.
merce all corporations which directly
or indirectly control capital stock or
exercise any other means of control
in any other corporations and. also
corporations capitalized at $10,000,000
or more where directors or officers are
on the board of officers or among the
officers of banking institutions.
Trusts Can't Own Roads.
Careful provision is made against
the holding company that is not It.
self engaged in commerce. Common
carriers and manufacturing or produc-
ing enterprises would be completely dis
associated so that no corporation
could at the same time own and oper.
ate transportation line and engage
in manufacturing or producing. The
law would bar from interstate COM
merce any person or corporation re.
ceiving any part of a rate or charge for
freight transportation.
Any long continued practice of sell
ing commodities below actual cost so
as to destroy a competitor would be
guarded against and uniform price
required modified only by variations in
transportation costs when the selling
price includes transportation and by
permitting a difference between the
price of carload lots and less than car
load lots.
If it's sections to control watered
stock and excessive payment for fin
ancing and promoting become law, cor
porations could not issue securities in
excess of the money or property value
received therefor. A latitude Of ten
per cent would be permitted in the
issuance of stocks and bonds and close
limitations placed on the compensa-
tion for promoting or financing. Other
parts of the bill concern civil remedies
and criminal penalties practically as
prescribed in the antitrust law.