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
r.r.sv legislature of seven bills pro-
,isrg for the most extensive revision
-, coronation laws in history, Presi-
5art-eIect Woodrow Wilson today
~.ocbed what he considers the climax
!, his program of reform as governor
If New Jersey.
These acts are designed to put an
.,a n trusts and monopolies under the
,,u,. of New jersey" declared Govern
-. Wilson in a prepared statement,
nard confidently predict that they will
occomplfsh 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
,spance of watered stock Is one which
,ba governor emphasized repeatedly
during the national campaign, he de-
dared that the proposed legislation had
baap drawn with the conditions in the
Gate Of New Jersey alone in mind.
oThese bills embody my ideas of the
way New Jersey should deal with the
onestion." he said. National legisla-
zion might have to be different"
Has Been Hard at Work.
Eyer since the close of the campaign,
the governor has been working on the
problem Of corporation reform. Chan
carlor Edward l. Walker and Judge
Bennett VanSyckel assisted him, and
last night the bills were launched in
the senate As the acts are admins
trauon measures and the Democrats
have comfortable majority in both
houses, Democratic leaders were prac-
ticalv unanimous in predicting that
they would be enacted With little oppo-
stior
The feature Of the bills that attracted
mos, attention was the provision max
inc violations Of the proposed law a
mtsdemeanor punishable by imprison-
ment as well as fines. The bills go
into extensive detail in defining trusts,
monopOes 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 a 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 it's 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 he used by the purchasing cor
poration In the direct conduct of its
own proper business"
This still permits, 1t is stated, a cor
poration TO extend its business by the
''N va IIlc property lncluQlnS the
stock, OF another corporation. if it's bust
ness be the same. but prevents the is
sung of Watered stock in the transac-
ton 1t has nothing to do with hold
ing companies. which are otherwise
treated, it 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
"uIos from extending their holdings,
and make them subject to the provi-
SONS forbidding undcrselling. discrimi-
"'uons and other monopolistic prac-
,geS' Present companies will be af-
''''eo' SO far as stock assurances and
mergers are concerned
Among the larger combinations char
,Fred under New Jersey laws are the
United States Steel Corporation, the
T', Oil Company, the American
tobacco Company, the American su-
S Srl 'enhing Company, the International
harvester Company, the Amalgamated
roppeI company, the United States
ID, company. and the Rock Island