The Birmingham age-herald., 1913-01-21
GOVERNOR WILSON
REACHES CLIMAX OF
T NEW PROGRAMME
Seven Bills for Extensive
Revision of Corporation
Laws Intr 'uced
- *
BILLS ACsVD WITH
WILSc 81 SENTIMENTS
%
"Ac. Designed to Put an End
to 1.usts Under Laws. of New
Jersey Says the Presi-
dent Elect

Trenton, IN J., January H.-President-
elect woodrow Wilson today reached
what he considers the climax in the
programme of reform as governor of
New Jersey. Seven bills making for the
most extensive revision of the corpora
ton laws in the history of the state We're
introduced tonight in the state legisla-
ture
These acts are designed to put an end
to trusts and monopolies under the laws
of New Jersey" declared Governor VIII
son. in a prepared statement describing
the measures. "and l confidently predict
that they will accomplish that much de-
sired result
Though the principeFof the bills which
seek TO prevent monopoly, underseling in
local markets, mergers. the existence of
holding companies. and the issuance of
watered stock, is one which the gov
ernor emphasized repeatedly during the
national campaign, he declared tonight
that the proposed 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 legislation
might have to be different
Results of Long War
Ever since the close of the campaign
the governor has been working on the
problem of corporation reform. Cham
cellor Edward |. Walker and Judge Ben
net Van Rycke 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 would be enacted
with little opposition.
The feature OF the bills that attracted
most attention was the provision making
violations of the proposed law a misde-
meanor. punishable by impris finent as
we'll as fines The bills go into extensive
detail In defining trusts, monopolies and
mergers. 1t was pointed out in the state
ment issued from the governors office.
however that while mergers and consol-
idations are prohibited in general, the
proposed laws do not intend to prevent
legitimate expansion of a business con-
cern by the purchase of property cog
nate In character"
Provision for this is made in the Sec
ond of the series of bills, which says:
When stock Is issued on the basis of
the stock of any other corporation no
stock shall be issued therefor n an
amount greater than the sum actually
paid for such stock in cash or its equiva-
lent, provided that the property pur-
chased or owned by the corporation
whose stock is purchased, must be cog
nate in character and use to the property
used or contemplated to be used, Dy the
purchasing corporation in the direct con-
duct of its own proper business
May Extend Business
This still permits, it is stated, cor
poration to extend its business by the
purchase of the property including the
stock of another corporation If its busi-
ness is the same, but prevents the issll-
ing of watered stock in the transaction.
1t has nothing to do with holding com
panies which are otherwise treated, 1t is
contended.
While the bills, II is claimed. take away
none of the rights of existing corpor-
atoms, they do restrict these companies
from extending their holdings and make
them subject to the provisions forbid
ding underselling. determinations and
other mOnOp0llStlc pfdctlces. ffeSent
companies will be affected so far as
future stock issuances and mergers are
concerned.
Among the larger combinations char
tered under New Jersey laws are the
United States Steel corporation, the
Standard Oil company, the American To-
bacco company, the American Sugar Re-
filming company, the International Har-
vester company. the Amalgamated Cop
per company, the United States Leather
company and the Rock Island Rrairoad
company.
The governor spent the day at the
state house, and did not leave until 10
o. clock tonight. Rabbi Stephen Wise of
New York, lunched with Mr.. Wilson. The
governor said Rabbi Wise had mentioned
the Russian passport question to him, but
he did not disclose details of the conyer-
saton.
Senators Newlands of Nevada and
Chamberlain of Oregon told the governor
that besides themselves they represented
other western senators in urging for Sec
retary of the Interior Governor Norris of
Montana Governor Hawley of Idaho,
Joseph r. TEAL of Oregon, or Democratic
Chairman Fallman of Nevada. Repre-
sentatives Hardwick and Bartlett OF
Georgia presented the names of several
Georgians for the cabinet.