The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-01-25
WILSON FIGHTS TRUSTS.
PRESIDENT-ELECT HAS BILLS
AGAINST MONOPOLY INTRO
DUCED IN NEW JERSEY
SENATE.
Call for Imprisonment for Violators of
New Acts Proposed by Governor,
Which Legislature il Expected To
Adopt-IIopcs To Remedy Corpora
ton Evil.

| Trenton, Jan. 20.-President- elect
Woodrow Wilson today reached what
he considers the climax in his pro-
gramme of reform as governor of
New Jersey. Seven bills making for
the most extensive revision of the
corporation laws in the history of the
State were introduced tonight in the
State legislature.
These acts are designed to put an
end to trusts and monopoly under
the laws of New Jersey" declared
Gov. Wilson in a statment describ-
ing the measures, "and l confidently
predict that they will accomplish
that much desired result
Though the principle of the bills,
which seek TO prevent monopoly un-
derselling in local markets, mergers
the existence Of holding companies
and the issuance of watered stocks,
Is one which the governor emphasized
repeatedly during the national cam
paign. he said tonight that the pro-
posed legislation had been drawn
with the conditions in the State of
New Jersey alone in mind.
These bills embody my ideas Of
the way New Jersey should deal with
the question" he said. National leg
islation might have TO be different"
Ever since the end Of the campaign
the governor has been working on
the corporation reform. Chancellor
Walker and Judge Bennett Van Syckie
assisted him, and tonight the bills
were launched in the Senate. AS the
acts are administration measures and
the Democrats have a comfortable
majority in both houses, Democratic
leaders were practically unanimous in
predicting that they will be enacted
with little opposition.
The feature Of the bills that at
tracted most attention was the pro-
vision making violations OF the pro-
posed law a misdemeanor punish
able by Imprisonment as we'll as fines
The bills go into extensive details in
defining trusts monopoly and
mergers. 1t was pointed out in the
statement issued from the governors
office, however that while mergers and
consultations are prohibited in gen
eral, the proposed laws do not in
tend TO prevent legitimate expansion
OF business concerns in the pur-
chase OF property common in char
acter."
Provision for this Is made in the
second Of series Of hills which says:
When stock Is issued on the basis
OF the stock of any other corpora
ton, no stock shall be issued therefor
In an amount greater than the sum
actually paid for such stock in cash
or is equivalent, provided that the
property purchased or owned by the
corporation whose stock is purchased
/
20 the property used or contem-
plated TO be used by the purchasing
corporation in the direct conduct Of
its own proper business"
This still permits. IL is stated, a
corporation to extend its business by
the purchase Of the property, includ-
ing the stock Of another corporation
If its business be the same, but pre-
vents the issuing Of watered stock
in the transaction. 1t has nothing
TO % with holding companies which
are otherwise created. it is contend
ed.
While the bills, il is claimed, take
away none Of the rights of existing
corporations, they do restrict these
companies from extending their hold
ings and make them subject 10 the
provisions forbidding underselling, dis
elimination and other monopolistic
practices Present companies will not
be affected so far as stock issuances
and mergers are concerned.
Among the larger combinations
chartered under New Jersey laws are
the United states Steel corporation,
the Standard Oil company, the Ameri-
can Tobacco corporation, the Ameri-
can Sugar Refining company, the In
tcrnationM Harvester company, the
United States Leather company and
the Rock Island Railroad company
Dinner To supreme Court.