The Birmingham age-herald., 1913-11-29
STOP LOOTING OF
CORPORATIONS, SAYS
SAMUEL UNTERMYER
Chief Counsel of PujO Com
mittee Speaks in Spring
fieId-Time to Restore
Industrial Confidence

Springfield. Mass. November 2S.-The
time has come, in the opinion of Samuel
Untermyer, who was chief counsel for
the Pujo committee investigating the
money trust. to restore confidence in the
industries of the United States, including
the railroads. How this could be accom-
plished, he outlined tonight in a speech
before the Economic club here.
A halt should be called he said upon
| further governmental investigations into
the past crimes in the looting of corpora
tions the slate should be wiped clean
and the work of reframing and strength
ening the laws to make impossible repetl-
tions of previous offenses should be be-
gun with a general amnesty to past Of
Tenders not yet apprehended.
Outlines Steps
He outlined steps as follows:
The currency bill now pending in the
Senate should be passed
Give the railroads living rates, "or they
will perish whilst we are refraning the
laws under which they are hereafter to
| live"
Abolish fiscal agencies, co-called. voting
trusts and interloclSing drectorates.
Make it a criminal offense for any Of
fieer or director of a corporation to bor-
row from or make a profit out of his
corporation.
Prohibit national banks and interstate
corporations from having interlocking di-
reetors in potentially competing corpora
tions.
Destroy holding companies.
Give minority stockholders representa-
ton in the directorates of their corpora
tions.
Place railroad reorganizations under
the control of the interstate commerce
commission and of the courts.
Compel the Incorporation of stock eX-
changes so that the books of their MEM
bers may be subject to governmental In
spection.
Enforce complete publicity of all cor
porate transactions and especially require
the fullest disclosure of all profits of
bankers, brokers and middlemen in mar
keting securities sold to the public.
Limit the directors of national banks
and interstate public service corporations
to nine.
Supplement Antitrust Law
Supplement the antitrust law by con-
stituting a federal industrial commission
to which the courts would turn over the
dissolution of corporations that have been
declared unlawful.
Give to this commission the power to
approve agreements between competitors
regulating prices and output for a limited
term and to the extent necessary to pro-
tect against ruinous competition, but un-
der conditions that will fully safeguard
the public.
Mr.. Untermyer spoke on How to Re-
| store Confidence" There had been 81
| sudden and alarming cessation in business
| activities all over the country, he said,
| and the consensus OF opinion was that II
had not been due to changes in the tariff.
Primarily, he thought, it was due TO
| uneasiness emanating from the disclos-
| ures "of rottenness in corporate man
agement' from pending and impending
legislation affecting the financial system
and the trusts and to the inability of rail-
roads to secure rates which would permit
them to maintain their properties and
give fair returns on invested capital. lie
added:
Should Call Halt
Il think We should call a halt upon
| further governmental investigation INTO
the past crimes in the looting of corpor-
ations. BY pursuing the subject further
we would doubtless learn of innumerable
| more instances not yet uncovered > =
but the evidence would be cumulative
| only.
u am in favor of a general amnesty.
Let us wipe the slate and begin the work
of so reframing and strengthening our
laws that there can be no repetition Of
the past without the certainty of prompt
detection and punishment"
| Regarding the pending currency bill,
Mr.. Untermyer said that it should be
passed, but that he differed from all plans
| now before the Senate with respect to
| the methods of dealing with subscriptions
| to the stock of the regional banks. The
passage into law of any of these meth
DDS, he feared, might lead to conversions
of national banks into state banks and
| consequent disruption. of the national
| banking system. In this connection Mr..
| Untermyer repeated the suggestions made
by him before the Senate committee last
September concerning this phase of the
/ l.