The Washington herald., 1914-05-25

=. s
fact dominate and guide the corporate
policy and benefit by Its lawless actA
8. For the protection and proper repre-
sentation OF minority stockholders
( G. Rigidiy regulating and supervising
the issue Of corporate securities through
the agency of Federal commissions, and
requiring complete publicity OF the pur-
poses to which the proceeds are to be
applied and Of the profits Of the bankers.
promoters and Intermediates.
AboIishinE the "Grnft."
T. AboIishing the graft of constitute
ing private bankers as the sole fiscal
agents and depositaries of the funds of
the corporations whose policies they die
tate and requiring that their funds be
placed in banks where they will be SUBJ
ject to supervision.
s. Placing the operations of the stock
exchange under Federal supervision, so
as to put an end to the long era of shame
less manipulation of security prices
through The use of the machinery of the
exchange to which dishonest practice
many of our vast fortunes may be traced.
8. Releasing the grip Of the Jul OF
men constituting the "A ~ Trust
over our great Interstate railway ana
Industrial systems by abolishing voting
trusts" reforming our methods Of ap-
pointing receivers of insolvent corpora
tons and by placing reorganizations un-
der the control of the courts and of
Federal commissions.
TO- For a systematic and impartial en-
forcement of the antitrust law, which
has never been and is not now being
generally enforced.
II. Taking out of the hands of the At
torney General and furnishing the neces-
sary legal and executive machinery for
the enforcement of the DEGREES of the
courts for the dissolution of combina-
tions that have been adjudged and keep
ing segregated such corporations and
thus ending the farce in which our at
torneys generals have been engaged and
that is bringing the administration of
justice into deserved contempt
L Giving to every party who Is in
1ured by the existence of an unlawful
combination the independent remedy to
enjoin the Illegal acts or suing to dis
solve the combination without awaiting
the slow, uncertain and spasmodic pro-
cesses of the Department of Justice. This
right should. however, be safeguarded
against abuse by allowing the govern
ment to assume control of any such ac-
ton at its pleasure and by preventing
any settlement or other disposition of
the action between the parties without
Its consent.
Stock Exchange Control,
A most essential part of any compre-
1ensive program for corporate reform he
declared to be the bill to require the in
of stock exchanges and to
place them under Federal supervision
The manipulation of securities through
he machinery of the exchange and their
vide distribution under cover of such
Incentive for the organization of the
rusts." said Mr.. Untermyer. 1T has
,ost the public more hundreds of mil
ions than they have suffered through
my other Of the many devices through
which they have been plundered."
Existing legal machinery does not as
'ure responsibility and punishment for
he misdeeds Of big business" said Mr.. |
Jntermyer in concluding his two-hour |
address,.
The enactment of the pending bills !
'roperly strengthened will help accom- |
'lish that result. Ours is rich country. |
Dur wealth Is fairly well distributed, not +!
the many hundreds of mil |
ions that have been confiscated by these |
nen in one way or another by way Of j
ribute or through gross neglect.
"A fraction Of 1t can still be recovered |
" the defrauded shareholders If they |
viii band together in each of these great |
operations to enforce restitution and |
rejection for the future.
'If the lessons of the past have taught
hem to manage their own affairs, here
fter 1t will have been worth the fear
n cost. When they are able to do that
5 in formers years, when these great
roperties were built up and operated
y their real owners, and not until them.
he investing public here and abroad will
gain interest itself in our enterprises.
leantime, We can do our share toward
the civilized world that We are
OF a nation of freebooters, and that we
ave sufficient of the capacity for self
overnment left to end the corruption
nd lawlessness OF high finance SO that
apital will hereafter be as safe with
s as in other countries"