Evening star., 1914-01-18
WILSON W0U[DG|VE
b|GP0WER T0L.C. c.
Newly Ascertained Features of
His Trust Reform Plan
Show 1t.
MAY BE GIVEN CONTROL
OF FUTURE STOCK ISSUES
President Announces That He Will
Read Message to Con-
gress Tuesday.

President Wilson announced last night
that he would read his message on trust
reform to a joint session of both houses
OF Congress Tuesday.
The President already has shown the
document to democratic leaders in Con-
gress, members of the two congress
sional committees in charge Of the legis-
lation and to members of the cabinet. All
have expressed approval.
The President has left to Congress the
task of framing the detailed remedies.
Besides the provision for an Interstate
trade commission. the prohibition of in
terlocking directorates and reduction Of
the "debatable area" of the Sherman
law, three hitherto unannounced features
of the Presidents plan are:
7. The prohibition OF holding compan-
les. Corporations would be forbidden to
own or hold shares or to be Interested
in the business of actual competitors or
cognate concerns: and the acquisition of
stock Of interests in non-competitive
concerns would be possible only with
the consent of the Interstate commerce
commission or of the proposed interstate
trade commission.
Big POWER to Commission.
8. Empowering the interstate commerce
commission to regulate and supervise the
issuance OF securities by the railroads
so that the public would exercise. through
the commission, a certain control over
the future uses to which the money
bonds would be put
80
government, either in civil or criminal
proceedings. the courts have rendered
judgment on the unlawfulness Of any
combination, individuals or concerns ag-
grieved through the combination. would
have the benefit of such adjudication and
not be required in their suits to prove
again the illegality of the combination.
The President has dealt with those gen.
eral principles on which he believes
public sentiment is agreed that correction
Is necessary lie has emphasized that a
spirit of friendliness rather than hos
tility should characterize the method Of
approaching the work of reform. To
this end the President himself. it was
learned last night. is behind the an
nounced program Of public hearings on
made 1t plain TO Chairman Clayton of
the House judiciary committee that the
business world should be given ftir op-
to express its views.
Ample Time to Be Given.
The President is anxious, too, that in
the legislation ample time should be given
In allecases for business to adjust itself
to new conditions. even to a period OF
from one to two years.
In line with the idea that public opin-
ion is more or less agreed on certain
principles. the President considers the
prohibition of holding companies as a
vital part Of the program. He believes
that, beginning with the decision by the
United States Supreme Court in the
Northern Securities case, holding com
panies have come under the ban Of pub
lie disapproval. While Governor Of New
Jersey ne caused to be enacted measures
prohibiting holding companies in that
state and permitting only such mergers
OF non-competitive concerns as were
sanctioned by the public utilities COM
mission.
An analogous function, 1t is under
stood now, would be given to the new
interstate trade commission through its
powers of inquisition and investigation
of what constitutes competitive and nom
competitive conditions. 1t is recognized
by administration advocates of this fea-
ture that there are many cases in which
a wide-sweeping prohibition of holding
companies might prevent the organiza-
Supervision of Securities.
The supervision of the issuance of rail-
road securities is to be recommended by
the administration In the belief that rail-
road capitalization and the issuance of
stocks and securities is closely involved
with increases or decreases in rates, and
that through the interstate commerce
commission the public would be safe
guarded
Recent speeches by railroad officials to
the effect that such regulation would be
welcomed is taken as evidence by the
administration that such regulation
would meet with general satisfaction
Close scrutiny of bills aimed to cover
Inent may not be placed in the position
OF sponsor for stock issues.
1t has become apparent that the Presi-
dent is determined that the Sherman
ANTITRUST Jaw remain unaltered and that
laws enacted be separate and designed
to strengthen it in certain particulars.
Reducing the debatable area of the
Sherman law now is understood in ad-
ministration circles as meaning the spe.
trade agreements by which output is
limited. territory divided for monopolistit
control or other Determinations in price,
fixing are practiced.
1t became known yesterday that Repre-
sentative Stanley's bill amending tn.
Sherman law was not discussed with the
President before its introduction and wa;
offered merely for the use of the judi
ciary committee. 1t is not to be regarded
as an administration measure according
to persons close to the President.