Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-01-10
BILLS TO STRENGTHEN
SHERMAN TRUST" LAW
Three Measures to Be Submitted to
- President Wilson for
Consideration.
Interlocking Directorates and Trade
Corporations Brought Specifically
Under Supervision.

Specincally IN three bills which have
been drafted by Chairman Clayton and
other members of the House judiciary
committee, and which are intendd tc
strengthen the law against trusts and
to compel certain corporations doing al
interstate commerce business to mend
their ways.
These bills will be referred to President
Wilson, with whom the members of the
House committee will confer before the
proposed trust legislation is offered to
the House itself. Those members of the
committee who have aided Mr.. Clayton
in the draft of the bills include Chair
man Carlin of Virginia of the subcom-
mittee on trusts. Representative Floyd OF
Arkansas and Representative Mccoy OF
New Jersey.
Penalties for Violations.
Jail penalties for individuals and fines
for individuals as well as for corpora
tons violating the antitrust laws, favor
ed by President Wilson, have been pro-
vided in the drafts of the bills. Also an
attempt is made to define specifically
combinations and conspiracies in re-
straint of trade.
The co.nittee reached the conclusion
after much study of the SUBJECT that II
would be more advantageous to prepare a
series of bills instead of attempting 10
put into a single measure all the proposed
trust legislation. The measures to be IN
PRODUCED are all supplementary to the
Sherman antitrust law.
The committee lays especial stress upon
the bill which prohibits intcrlocking di-
rectorates. This measure deals not only
with banks and trust companies. but also
with every industrial corporation en-
gagged in interstate commerce
Provision of the Bill.
The tentative draft of the measure pro-
vides that:
After the twenty-third day of De-
cember. 1914, an officer or director of a
federal reserve bank, a branch bank, ma
tional bank or banking association or any
state bank or trust company Admitted to
membership in a federal reserve oank
shall not he an officer or director OF any
other bank banking association or trust
company or of any financial corporation,
institution or association engaged In the
business of banking Nor shall he en-
gage in the banking business individually
or as a member of firm or association
engaged in such business; nor shall he be
an officer or director OF any other corpo-
ration, organization or association, the
principal part of whose authorized or
the stock, bonds. securities or evidences
of Indebtedness of corporations. organiza-
tionS or associations or to finance the
sale OF such stock, bonds. securities or
evidences of indebtedness. or to negotiate
loans to corporations, organizations or
associations; nor of any. other corpora
ton. organization or association owning
stock of or an interest In a corporation,
organization or association conducting
principally such authorized or actual
business.
"A director of class a of federal re-
serve bank may be an officer OF direc-
tor, or both an officer and director Of
one member bank
The other two classes are prohibited in
the currency law from holding the other
offices.
This part of the measure was drafted
by Representative Mccoy Of New Jersey,
and is understood to have the approval
of Chairman Clayton, Mr.. Carlin, and
other judiciary members
Industrial Corporation Feature.
The effect of the industrial corporation
feature of the interlocking directorate
bill, the committeeman say, would be Of
the most sweeping character. cutting out
the interlocking arrangements and en-
abling the directorships and control to
pass to large army of new men, instead
OF keeping the INDUSTRIAL COutTOl Ol sd-
ri6uS lines of activity in the hands OF .
few. Under its terms no officer or direc-
ter in any industrial corporation engaged
in interstate trade would be permitted to
De. any officer or director in another In
dustrial interstate corporation in allied
business. Manufacturers of railroad
cars, locomotives. railroad rails and
structural steel, or men engaged in min
ing or selling coal, would be barred from
becoming directors or other officers or
employees OF railroads engaged in inter-
state commerce. The bill would not be-
come effective until two years after pas
sage. in order to allow adjustments of
business arrangements.
The other measures would take eff
feet Immediately upon passage.
The bill designed to stop agreements
FOR regulation of prices has drastic pro-
visions. 1t is designed to effectually stop
the fixing by wholesalers of the prices at
which the manufactured article shall be
sold to the public and to prevent big
business from entering into contracts to
control prices of any commodity. It has
been drawn With a view to stopping Sc
cret agreements and "gentlemen's under
standings" so far as that can be done.
Provision for Injunctions.
The measure on injunctions and dam
age suits would give individuals as well
function proceedings for any attempt at
injury.
In any civil proceedings begun under
the Sherman law by the federal govern
rgent in which judgment or final or in
terluctory decree has been entered hold
ing defendants guilty Of conduct prohibit
ed by the act, it would permit individ-
uals claiming to be injured by such con-
duct to be admitted as a party to the suit
with the same relief as if they had
brought an independent suit. This would
give the individual the benefit of the re-
suits of proceeding by the government
Members of the judiciary committee ac.
tive in framing these bills believe that
the measures would strengthen the Sher-
man law without injustice to the rights
of business.
Regarded as Not Radical.
Comment at the Capitol today was to
The effect that the contents of the pro-
posed trust bills. SO far as known al
present, bear out the predictions which
have come recently from many sources
THAT the administration was not planning
any very radical legislation, or anything
that would give big business a black
eye. 1t was pointed out that about the
only new feature of the bills was that
prohibiting interlocking directorates.
Hyacinths Sprout in January.
BALTIMORE, January 10-Hyacinth.
have begun to sprout here more thai
two months too early. Many of the greer