The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-04
FOLLOW PROGRAM
OF LEGISLATION
Department of Commerce Will
Carry Out Investigation Into
Question-Recommendations
of Money Trust" Com
mittee Already Put
Into Effect.
Special to The Times-Dispatch.J

withdrawal of J. +. Morgan g. Co.
from many directorates In which 1t
had had a controlling voice, will not
alter the plans of the Department OF
Commerce for thorough investigation
of trade conditions and the operations
Of trusts.
l regard the withdrawal of Mr.. Nor
gan and his associates from several
directorates as a highly important
step forward" was the single comment
that Secretary Redfield would make.
That this work is to be thorough
fact that Secretary Redfield has asked
for an increase of appropriation from
S250.000 to s6S5.o0o.
Much of that greatly enlarged fund
he desires to use in undertaking a
study of certain fundamental economic
laws which all our Industries are
based"
Secretary Redfeld's expressed opln-
Ion is that the duty OF the Bureau OF
Corporations is ito gather informa-
sive character with reference to indus
trial conditions pertaining TO inter-
state commerce 10 far as they have to
do with corporations than would be
entailed in the investigation Of isolated
Industries" He holds that the mass
Ing of capital has in il certain elements
OF efficiency. but doubts whether 1t is
for the best interests of the country as
whole.
Follow Legislative Program.
we shall go right ahead and fol-
low the program or legislation against
interlocking directorates which the
Democratic party has outlined" said
Senator Kern, majority leader in the
Senate. to-day.
Public opinion has become. we'll
nigh universal in opposition TO the in
terlocking Of directorates. and perhaps
tho Morgan Company had sense enough
to see that a change was inevitable"
Chairman Hinebaugh. OF the Pro-
gressive congressional committee, to-
day said that the action of Morgan
was typical of others that unquestion-
ably will follow.
The new policy of the house OF
Morgan" said Chairman Hinebaugh,
lis symptomatic of the fact that big
business realizes that the temper of
the people will no longer tolerate the
things that have been done in the past
II means that great houses like Nor
gan and others intend TO anticipate the
action of Congress. and reorganizc 10
the point where they hope they viii
command public support, without ac-
tually lessening their power.
1T is noticeable that Morgan &
Company do not give up their holdings
OF stocks and bonds. If great house
bonds of an Industrial. it does not
need to have actual membership on
Its directorate. 1t can exercise it's in
nucnce through dummies, If IL wants
TO, just as well as in any other way.
regard the move of Morgan & Com
pany as an exceedingly clever one
SO far as the Progressive party is
concerned, 1t will ir no way halt It's
demands for thoroughgoing reforms
n
legislation"
To Reach Root OF EVIL.
number of members of Congress
take the view that the mere prohibit
ton of interlocking directorates will
not eradicate the alleged evil of inter
locking stock control. with the OBJ
ject of reaching the root of this evil,
number of bills already have been
introduced that prohibit the owner
ship by railroads of coal and iron
company stock. The suggestion has
been made that these prohibitions may
be extended to include stock of other
kinds OF corporations The trust pro-
gram of the administration certainly
VIII go far enough to compel a com
plete severance of the community OF
interest now existing between the rail
roads, the banks and the industrials.
This phase of the question, howeve
has been passed upon by the Supreme
Court, where it mas been held that
railroads may hold stock In coal COM
panieS If the stock Is held for invest
ment and not for the purpose OF con-
troll and the sitting of competition.
President Wilson is on record as as
serting that the Sherman antitrust law
must not be changed. He favors sup
Elemental legislation. intended to
strengthen existing laws. II the Nor
gans can voluntarily withdraw from
their numerous directorates without
unsettling business. it is argued that
legislation making it compulsory will
not be detriment others contend
that the mere fact that Morgan &
Company have voluntarily withdrawn
indicates that a more radical remedy
must be prescribed
In Effect without Lcgislation.
New York. January 3.--The an
Eouncement OF tho retirement of !. Il
Morgan and four of his partners from
thirty directorates in twenty-seven
corporations, and Mr.. DIorgan's refer
cree to the change in public sentiment
In regard to directorships, has called
ant recommendations o. the committed
OF the House OF Representatives which
investigated the reputed money trust
are already being put into effect in
advance OF legislation requiring them.
They include the abandonment of ns
cal agency agreements, such as existed
between the New York. New Haven
ard Hartford Railroad and j. p. Nor
gan &c Co.; the abolition of the inter-
locking directorate the abolition of
voting trusts, reforms In the stock OK