New Britain herald., 1914-04-17
LABOR IS FAVORED
 IN NEW TRUST BILL
Unions, However, arc Not Exempted
 From Prosecution.

Washington, D. C., April 17.-A revised administration trust bill, part k complying with the demand of or ganized labor that it be exempted from prosecution under the Sherman law, has been introduced in the house by Representative. Clayton, chairman of the Judiciary committee. a.
 Representative P. Covington of Maryland presented g, report on be- half of the interstate commerce com mission urging the passage of a bill creating a trade commission, which shall preserve competitive conditions, but not regulate monopoly or control prices. ... .+
 The new Clayton trust measure has been approved by President Wilson, and preparations will be made at once to pass 1t in the house. Consideration of the new bill was begun by the judi ciary committee yesterday. The leaders say that a report will be made to the house within the next ten days.
 Labor Provisions Main Feature.
 The outstanding feature of the anti trust program is found in the pro- visions dealing with labor. In the Clayton bill President Wilson gives formal notice that he is opposed to exempting organized labor and volun- tary associations of farmers from prosecution under the antitrust laws.
 Section $ of the Clayton bin gives a. legal status to union labor as at pre- sent organized, but does not exempt it from prosecution for acts that are de- c]ared by the antitrust laws to be illegal. As further concession to labor Chairman Clayton embodied in the bill provisions limiting the power of the federal courts in issuing injunc- tions and providing jury trials in cases of indirect contempt.
 The Clayton bill provides that labor unions as we'll as other mutual or ganizations mot having capital stock or conducted for profit" shall not be restrained from carrying out the legitimate objects of such associa- ticns." This does not stop prosecur tions of labor unions if they commit acts that are held by the bill to be illegal.
 Personal Guilt'' Standard Held.
 Throughout the bill offered recently the priciple of personal guilt" Is ap- piled to all offenses that are held to be unlawful. In the revised program Chairman Clayton has softened the provisions prohibiting interlocking di- rectorates and holding companies.
 The tentative holding company bill was criticised on the ground that it placed obstacles in the way of ex- tensions that business men said in no wise menaced the public welfare. The substitute provisions proposed in this regard are aimed only at what are known as bad" holding companies
 Section prohibits a corporation from acquiring control over com petitor where such acquisition might tend to the creation of a monopoly i'll any line of business. The prohibit ton does not apply to corporations purchasing stock solely for invest ment purposes. &
 Violation of the holding company prohibition is made punishable by fine of not exceeding $5,O00, or im- prisonment for one year, or both
 Bars Interlocking Directorates.
 Important changes were made in the provisions relating to interlock- ing directorates. The tentative bill dealing with this subject prohibited directorates among banks of capitalization. The Clay ton bill excepts all banks with re- sources of less than $2,500,000 from the application of the proposed law. 1
 There is another new section ar- fecting private bankers and trust 1 companies in all cities with a popula- ton in excess of 100000. This reads l as follows:
 ''No bank, banking association or trust company organized and doing l business in any city or town of more l than 100000 inhabitants shall have 1 asa director or other officer or em- l ploye any private banker or any di l rector or other officer or employe of | any other bank, banking association, or trust company located in the same 1 place." ..
 Violation of the prohibition against ] directorates is made l by fine of $100 day for | each day of continuance or by im- prisonment for such period as the l court may designate, not exceeding 1 one year, or both.
 Court Power Remains Limited
 The provisions limiting the power l of the courts in issuing injunctions l and punishing for contempt are the 1 same as those that were carried in the 1 bills on these subjects that were | passed by the democratic house in l the sixty-second congress. Section IA | provides that no injunction shall be l issued without notice unless it should ! appear to the court that the giving of | such notice would result in ''imme- diate and irreparable injury.'
 In such cases a temporary restrain ] ing order may be issued without mo- | tice. Such order shall expire within |! ten days after it's issuance, and 1 shall define the injury feared and l state why it was irreparable and why 1 the order was granted without mo- tice.''