Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-01-19

legislation and to members of the
Cabinet All have expressed approval.
The President has left to Congress
the task of framing the detailed rem
edies. Besides the provision for an
| Interstate Trade Commission, the pro-
hibition of interlocking directorates
and reduction of the "debatable area"
of the Sherman Law, three hitherto
unannounced features of the Presi-
dents plan are:
l. Prohibition of holding companies.
Corporation would be forbidden to own
or hold shares or be interested in the
business of actual competitors or cog
nate concerns, and the acquisition of
stock or interests in non competitive
concerns would be possible only with
| the consent of the Interstate Com
| merce Commission or the proposed In
| terstate Trade Commission.
2. Empowering the Interstate Com
merce Commission to regulate and SUI
pervice the issuance of securities by
the railroads so that the public would
| exercise, through the commission,
certain control over the future uses to
which the money obtained from the is
sue of stocks and bonds would be put.
8. Wherever. at the instance of the
government, either in civil or criminal
proceedings, the courts have rendered
| judgment on the unlawfulnesS of any
combination, individuals, or concerns
aggrieved through the combination
would have the benefit of such adju-
dication and not be required in their
suits to prove again the illegality of
| the combination.
The President has dealt with those
general principles on which he be-
| lieveS public sentiment is agreed that
| correction" is necessary He has en-
phasized that spirit of friendliness
rather than hostility should charac-
terize the method of approaching the
work of reform.
To this end the President himself,
it was learned today, is behind the
announced program of public hearings
on the proposed bills. The President
has made it plain to Chairman Clay
ton of the House judiciary committee
that the business world should be
given full opportunity to express it's
views.
The President is anxious, too, that
in the legislation ample time should
| be given in all cases 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
| opinion is more or less agreed on GER
| tain principles the President consid-
ers the prohibition of holding compa-
mics as vital part of the program.
He believes that, beginning with the
! decision by the United States supreme
court in the Northern Securities case,
holding companies have come under
the ban of public disapproval.
While Governor of New Jersey he
| caused to be enacted measures pro-
! hibiting holding companies in that
state and permitting only such mer-
gers of competitive concerns as
were sanctioned by the Public Utili-
ties Commission.
| An analogous function, it is under
stood, now would be given to the new
Interstate Trade Commission through
| it's powers Of inquisition and investi-
| cation of what constitutes competitive
and competitive conditions. 1t is
recognized by administration advo-
Gates of this feature that there are
many cases in which wide, sweep
ing prohibition of holding companies
might prevent the organization OF use
| full enterpf les.
| The supervision of the issuance of rail-
road securities is to be recommended py
the administration in the belief that rail-
road capitalization and the issuance OF
1 stocks and securities is closely involved
with increases or decreases in rates, ana
| 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 ad-
ministration that regulation would meet
with general satisfaction Close scrutiny
of bills aimed to cover this point is in
tended that the government may not be
placed in the position of sponsor for
stock issues.
1t has become appa. ent that the Presi-
dent is determined that the Sherman
antitrust law remain unaltered and that
| laws enacted by 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-
! cific prohibition of written, oral or sec
| ret trade agreements by which output
| is limited, territory divided for monopo-
| listic control of other determinations in
price-fiXng are practiced.
1t became known today that Repre-
sentative Stanley's bill amending the
| Sherman law was not discussed with the
President before its introduction and was
| offered merely for the use of the judi
ciary committee. 1t is not to be regard
ed as an administration measure. accord
ing to persons close to the President.