The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-09
HOLDING COMPANIES
BILL A HARD PUZZLE
Trainers Find Difficulty in
Meeting Apparent Views
of the President.
MESSAGE CONTAINS A SNAG
Seems TO Oppose Only Feasible
Means Of Separating "Good"
From "Bad."
MESSAGE CONTAINS A SNAC

WASHINGTON. Feb. S.--rhe Administra-
ton bill prohibiting holding companies
will be presented to the House this week
o. early next The measure is being
vnlpped into shape by Chairman Clayton
and Mr.. Carln OF Virginia and Mr. Floyd
OF Arkansas. Democratic members of the
Committee on the judiciary.
The task OF framing this bill. regarded
AZ one OF the most important features OF
the Administrations programme OF anti
trust legislation. is very difficult. accord
ing TO Chairman Clayton. lie and his
associates began their labors on the theory
that all holding companies are bad and
that a legal prohibition would operate
against them all. President Wilson recom-
nendcd law breaking up holding COM
panies and the Clayton subcommittee
proceeded to draw "a bill complying with
The Presidents request literally.
Hearings on the antitrust bills have
gwen the Clayton subcommittee new
Eight. Lawyers in whom they have con-
nience have told the subcommittee that
there are good holding companies and
Dad" ones and that Congress Will stir
UP great mischief IL a legal prohibition
Shall be applied TO all alike. For this
reason Chairman Clayton and the other
members OF the subcommittee are work.
iig With great elaboration on the bill
dealing with the supposed evils in the
ao.ding company system.
Some One Must Make the Choice.
They have practically reached the con-
c!uson that In correcting the evils alleged
the discretionary power to separate tho
good from tine bad should be lodged IN
some Federal bureau or commission. Just
how this Is TO be done is problem.
A solution of tho problem might b.
a.ga ha COMMITTEES
jurisdiction over the Administration bill
providing for the creation OF an Interstate
trade commission. This particular bill IN
IN the hands of the Committee on inter-
state and Foreign Commerce, a committee
opposed to vestng large powers In an in
sers,ate trade commission.
I: IL conceded by Democratic leaders
That the bill IN its present form merely
charges the authority now exercised by
tie Commissioner OF Corporations. This is
JUS. as the Interstate Commerce Com
,I..,tee would have II. That committee
IS understood TO be strongly opposed to
trade commission exercising power such
o. would be conveyed by authority 10 de-
eide whethe- a holding company is
good" or bad"
Members Of the Judiciary Committee
ST.. IL will be exceedingly difficult to
frame law unless discretion is lodged
n some administrative body defining the
and the sort that is Illegal. The task
o. drafting such bill is proving so
difficult tina: the sub committee may APP
peal 20 the ADMINISTRATOR legal officers
FOR guidance on this point.
That feature OF the Presidents message
relating to holding companies does not
contain ANY details In this connection
the President said:
We are agreed take Il. that holding
COMPANIES should be prohibited. but what
y. the controlling private ownership OF
individuals or actually cooperate sroups
o. indv!dua!sT'
The President then went on TO sag that
"yo,iny trusts" formed bv inliyldua,
stockholders should be prohibited. but h,
10 ed TO part.cular!ze.
There is one feature OF the Presidents
message that seems 10 stand in the yay
O. the Judiciary or any other committee
% Congress drafting a bill giving to a
trade commission or any other admins
trat!ve body discretionary pow,.- In deal
irg with holding companies. Discussing
the advsab,lity OF creating a trade com
mission the President said:
The opinion OF the country would in
.tant!y disapproye OF such a commission.
II would not wish to ace II empowered
10 make terms with ,nononoiv or In am,
sort to assume control OF business "a II
the Government made itself resnonisble"
Il seems 10 the Leaders Who h.j,c,e tho,
some distinction should n. made in ,bs
law between good and "bad" boIdirg
companies tha, IN. second sentence NJ th.
paragraph Of the presld.n,'s r,as.ay.
quoted specifically exnresses Jisfovnr
toward any prnyIsion that seeks m o,,nvsv
discretionary newer in treating v.i.h hold.
.uy commands
The confusion oyl,.,,p ~, ,bi. mint
nav be cleared mn IN conferuces 70 hs
ceil this ve.I, h.,u,..r tbo ,,,,s, ,,,h~
conmi,tea Nessrs rlsy-or Csri,n ard
Flovd and ,.,ders n, ths .dninis,ro,io,
In c,tIn. dSG;cni,io. Tho, .,,nd ~ -
wa az the from,ng or a Nil ain,.d -,
nold,ne connanies tho s,h-comn,,t,.e
rnen,h.,s rsc.iI t,ro u,u.+r, ,,n,. I'D. ~,
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-saI ",,psr ~ opeLato ilue
. ",liv'I.iy; lheE we're hierseo uiuer
ne. capnaiizatioh oy hS,ains company
''r'l'u TOT tHe purpose. IHuS coIllDiHeu