Evening star., 1914-02-20
LEADERS At WORK
FRAMING THE BILLS
Administration Plans for the
Regulation of Trusts
and Commerce.
NEAR FINISHING STAGE
IN HOUSE committee
Legislation Regarding Holding CON-
panies-Probable Consolidation OF
Several Measures Into One.

Work of framing tho adruiHstt -
TONS antitrust and commerce rogaIA-
ton bills went forward on the House
side of the Capitol today. \ coufercn
OF the House judiciary subcommittee
trusts. comprising Representative Ga
ton. Carlin and Floyd. was arranged ~
put the finishing touches Oh tho l.
which proposes to prohibit holding cor
panies from owning competiu. co.
Germs.
Chairman Covington OF tho Horse 3
ferstate commerce subcommittee IN II
interstate trade commission hl. W
prepared today to go ahead with u
executive conferences to fran, =
measure. IN the light Of hearings al.
within the limitations of Presid.r, W
sons suggestion 20 avoid any provision
that might impair the efficiency or Il @
Sherman law
Indications today were that fbs bI
,eiatng TO holding companies. trade =.
iauons. lnterlocklng directorates and a,
inning trade restraints would be lr.sant.
10 tne aouse as single. consolidate .
plan TO strengthen the antitrust law
Probable First Draft of Bill.
Conferences between Chairman Sim,
and other members of the railway CAT
italization subcommittee with the inter
state commerce commission indica ed t!a
the following propositions in ali rrobs.
bility would be embodied in the fiIs, dralt
of the proposed railway capiIaliAalloi.
law:
Prohibition against any railroad corpo-
ration issuing stocks, bonds or other N
deotedness. except tor actual Aeccssa. }
iaiifoao property pul poses. no a. to asd
to the railI Dad S vaiae. ana tne lsaLe tH..it
oniy to De upon approval of lie 4ntei
stale commerce con4missloir.
Personal guilt and responsibility -! dI-
rectors and otner officers. inc.9a4ng I'M
prisonment penalties. tor vloIation ui tie
law
Reasonable restrictions on the amounts
of stock and bond issues.
Guarantee by applying railroad as a
or bond issues. that the proceeds Viii
apply to the railroads upkeep. extension
or other legitimate ascertained use
Restrictions to make impossible the dis
position of stock or bond issues except
for bona fide value in open market and
to prevent passing them around 10 friends
''on the inside at advantageous prices.
Provision for Public Hearings.
Public hearings upon applications of
railroads and other common carriers
to issue stock and bonds. upon notice
to the particular railroad and TO the
Department of Justice. and. possibly.
to the railroad commission of the state
or states affected.
Regulation of purchases of railroad
supplies to prevent officers selling to
themselves through double corpoi alton
connections
Avoidance Of finality or guarantee
effect of the interstate commerce com
missions 20. K" on stock and bond
Issues In case OF subsequent court ~
other proceedings.
Authority TO competent courts to en
join all issues contrary to this pro-
posed law, upon suit OF the United
States or any officer or stockholder or
the offending railroad.
Liberalization Suggested.
liberalization of the administration bll
to prohibit interlocking directorates WAS
proposed to the House judiciary commit
tee today by Thomas B. Patton. represent
ing the federal legislative committee Of
the American BanAers' Association.
Under the pending bill no director might
serve in any two banks in the federal re
serve system. The proposed modification
would allow a director TO serve in any
number of banks. provided they We're NOT
located In the same CITY. and in anv mum
ber of banks in single city, provided tn
average capitalization OF the banks "
not exceed a million dollars.
z. S. Hunt of Waterbury, Conn, rel
resenting the Connecticut Savings 8ai'H
Association, asked that savings banks
trustees and directors be exempted
Trade Commission Bill.
The Senate commerce COMMITTEE DIS
cussed amendments to the trade con'nl--
sion bill to meet the views OF PreslGtit
Wilson and Attorney General McR''
nolds as 10 the scope of such an iasti-
tuition, and announced that lnaa aci'eA
would be taken probably tomorro"