The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-04-25
FEATURES OF ANTITRUST BILL,
Principle of personal Guilt" Applied
--Interlocking Directorates And
Holding Company Clauses Modi-
tied.

tion is. In many respects, the most
important measure OF the session.
Throughout the bill the principle OF
personal guilt is applied to all of.
renses that are held to be unlawful
In section 2. for instance, which pro.
vides fine OF not more than $1,000
or imprisonment not exceeding one
year. or both. for discriminating In
prices OF commodities to injure or de-
stroy the business Of a competitor
this provision Is added:
Corporations shall be deemed per-
sons within the meaning of this Sec
ton. and when any corporation shall
be guilty OF violation OF this section
the offense shall be deemed to be also
that Of the individual directors or 9th
er officery or employees Of such COR
poration ordering or doing the pro.
hibitcd act. and upon conviction they
shall be punished al provided in this
section"
Sections one to Ave inclusive, deal
with price dlscrimint tiOns.
The Clayton bill gives n legal status
TO labor unions as well as other "mu-
tual" organizations. mot having cap
ifal stock or conducted for profit" 1t
provides hat such organisations shall
not To restricted 'from carrying out
tho legitimate objects Of such, associa-
lions" This does not stop prosecu-
tions Of labor unions IL they commit
acts that are held by the bill to be
illegal
Section ak Of the bill dealing with
this question reads:
That nothing contained In the anti
trust laws shall be construed 10 forbid
the existence and operation OF frater-
nal. labor. consumers. agricultural or
horticultural organizations. orders or
associations operating under the lodge
system. instituted for the purpose of
mutual help and not having capital
stock or conducted for profit. or to
forbid OF restrain individual members
OF such orders or associations frcm
carrying out the legitimate objects of
such associations"
Section z relates to holding compa-
nies. II prohibits corporation from
acquiring control over competitor
whore such acquisition might tend to
the creation OF a monopoly In any
line Of business. The prohibition does
not apply to corporations purchasing
stock solely Tor investment purposes.
Here Is a new section Of the bill
that is regarded as Of importance:
Nor shall this prohibition prevent
corporation engaged In commerce
from causing the formation Of sub
sidiary corporations for the acutal
carrying on their immediate lawful
business or the natural and legitimate
branches therefore or from owning
and holding all or part of the stock
OF such subsidiary corporations when
the effect OF such formation is not
to eliminate or lessen competition"
Another new provision Is that which
permits railroads to ASSIST In the
building OF feeder" lines and to pur-
chase and control branch" or short
line" railroads that are not substan-
tlal competitors.
Violation of the holding company
prohibition Is made punishable by a
fine not exceeding 5000 or imprison-
ment for one year or both.
Section 8 has to do with interiock-
ing directorates. 1t prohibits inter-
locking directorates between railroads
and corporations that are engaged in
selling railway supplies. II also pro-
hibits interlocking directorates among
banks and other financial institutions
In addition to the pa ovision limiting
the enforcement Of the prohibition
only against financial institutions with
resources In excess Of s2.500. 900, there
is another section affecting private
bankers and trust companies in all
cities with "a population In excess Of
100000. This reads as follows:
'No bank. banking association or
trust company organized and doing
business In any city or town OF more
than 100. 900 inhabitants shall have as
a director or other officer OF employe
any private banker or any director
or other officer or employe OF any 9TH
er bank. banking association or trust
company located In the same place"
Violation OF the prohibition against
interiocking directorates Is made pun
ishable by "A fino OF 500 a day for
each day OF continuance or by Inn
prisonment for such period as the
court may designate not exceeding one
year, or both.