Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-01-21
WILSON LAYS Ak
T0NEN JERSEY
M0NOPOL|ES
,even Administration Bills Out
Iawing Trust Corruption Be-
fore State Legislature.

-pFvrON. n. j., Jan. 21.-With the
,-.-odr,tion last night into the New
-. LEGISLATURE of seven bills pro-
ST., por the most extensive revision
,or,oration laws in history, Presi-
,..+ elect Woodrow Wilson today
..,obed what he considers the climax
:. ,is program Of reform as governor
of New Jersey
THESE acts are designed to put an
..s 70 trusts and monopolies under the
49, of New jersey" declared Govern
-, wilson in a prepared statement.
"ard confidently predict that they will
.n,or,nItsh that much desired result"
Although the principle of the bills
which seek to prevent monopoly, under
selling in local markets, mergers, the
existence of holding companies and the,
issuance Of watered stock is one which
+ba governor emphasized repeatedly
during the national campaign. he de-
,iara5 that the proposed legislation had
neon drawn with the conditions in the
state Of New Jersey alone in mind.
"These bills embody my ideas of the
nav New Jersey should deal with the
orsstion." he said. National legisla-
ton might have TO be different"
Has Been Hard at Work.
vver since the close of the campaign,
the governor has been working on the
problem Of corporation reform. Chan
callor Edward |. Walker and Judge
Pennet vanSyckel assisted him, and
last night the bills were launched in
the senate. As the acts are admins
tration measures and the Democrats
have comfortable majority in both
horses Democratic leaders were prac-
,icallv unanimous in predicting that
they would be enacted with little oppo-
silion.
The feature Of the bills that attracted
most 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,
monopolies 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 n & 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
If the stock of any other corporation,
M stock shall be issued therefor in an
amount greater than the sum actually
paid for such stock in cash or its equiv
aIent; provided, that the property pur-
chased or owned by the corporation
whose stock Is purchased must be cog
nate in character and used for contem-
plated to be used by the purchasing cor
poraton in the direct conduct OF its
own proper business
This still permits. It is stated, cor
noration to extend it's business by the
purchase of the property including the
''"'N' vi another corporation, il its bust
ness he the same, but prevents the is
SUNG Of watered stock in the transac-
uoh' 1t has nothing to do with hold
ing companies which are otherwise
Treated, it is contended.
UnderseIling Forbidden.
While the bills. it is claimed. take
away none of the rights of existing cor
porations, they do restrict these com
panIeS from extending their holdings,
'no make them subject. to the provi-
N'onS forbidding undertaking. discrimi-
"'Nohs and other mOnopolistic prac-
,''eS' Present companies will be af-
.''le'' so far as stock issuances and
me gers are concerned.
Among the larger combinations char
,9fed under New Jersey laws are the
o"''ed States Steel Corporation, the
standard Oil Company. the American
looaeco Company, the American Su-
~ 'e'inlhg Company, the International
l,ol'ester Company, the Amalgamated
Yppe' company, the United States
.9'ner Company, and the Rock Island