Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-01-21
WILSON LAYS Ak
ID NEW JERSEY
MONOPOL|ES
Seven Administration Bills Out
Iawing Trust Corruption Be-
fore State Legislature.

TRENTON, n. j., Jan. 21.-With the
,,-roduction last night into the New
,ar,ev legislature of seven bills pro-
y,ding for the most extensive revision
- corporation laws in history Presi-
s,r+-e1ect Woodrow Wilson today
coached what he considers the climax
- his program of reform as governor
of New Jersey.
oThgse acts are designed to put an
.rd to trusts and monopolies under the
,.vs Of New jersey" declared Govern
A. Wilson in a prepared statement,
land confidently predict that they will
.ccomplish that much desired result"
Although the principle of the bills
which seek to prevent monopoly, under
selling in local markets, mergers, the
syistence of holding companies and the
issuance of watered stock is one which
the governor emphasized repeatedly
durfng the national campaign, he de-
,larej that the proposed legislation had
heen drawn with the conditions in the
state Of New Jersey alone in mind.
"These bills embody my ideas of the
Nay New Jersey should deal with the
question" he said National legisla-
tion might have to be different"
Has Been Hard at Work.
Ever since the close of the campaign,
the governor has been working on the
problem Of corporation reform. Chan
cnIlor Edward l. Walker and Judge
Rennet VanSyckel assisted him. and
last night the bills were launched in
the senate. As the acts are admins
tration measures and the Democrats
have 2 comfortable majority in both
houses, Democratic leaders were prac-
ticalv unanimous in predicting that
they would be enacted with little oppo-
siton
Tha feature Of the bills that attracted
mos, attention was the provision max
ing violations Of the proposed law a
misdemeanor, punishable by imprison-
ment. as we'll as fines. The bills go
into extensive detail in defining trusts,
monopoIies and mergers. 1t was point
ed out in the statement issued from the
governors office, however, that while
mergers and consultations are prohib-
tied in general, the proposed laws do
not intend to prevent legitimate eXpan-
sion Of business concern by the pur-
chase Of property "cOgnate in charac-
ter"
Provision for this is made in the sec
ond Of the series of bills. which says:
No Watered Stock.
When stock is issued on the basis
Of the stock Of any other corporation.
no stock shall be issued therefor in an
amount greater than the sum actually
paid for such stock in cash or its equiv
alent; provided. that the property pur-
chased or owned by the corporation
whose stock Is purchased must he cog
nate in character and used for contem-
plated to be used by the purchasing cor
poration In the direct conduct of its
own proper business"
This still permits. it Is stated a cor
poration to extend it's business by the
purchase Of the property. including the
stock, Of another corporation, if its bust
'''' H''Aiitr bui prevents JIle Is
sung Of watered stock in the transac-
ton 1t has nothing to do with bold
ing companies, which are otherwise
treated, 1t is contended.
UnderseIIing Forbidden.
While the bills. it is claimed. take
away none Of the rights Of existing cor
porations, they do restrict these com
pahles from extending their holdings,
ana make them subject to the provi-
SONS forbidding underselling. discrimi-
nations and other monopolistic prac-
uces. Present companies will be af-
Iected' so far as stock issuances and
mergers are concerned.
Among the larger combinations char
,s'ed under New Jersey laws are the
United States Steel Corporation, the
standard Oil Company, the American
iooacco Company. the American Su-
gar Refining Company, the International
harvester Company the Amalgamated
upper Company, the United States
rsdtnef Company, and the Rock Island