South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-02-25
GOVERNMENT To
DEAL WITH ONLY
BIC BUSINESS
Federal Trade Commission to
be Given Authority Over
Only Such Concerns Having
a Three Million Revenue.

WASHINGTON. Feb. z5.-The new
plan of the congressional trust Iegis-
lative committee for federal control
Of interstate business is To restrict
government supervision and espion-
age Ia big business
The federal trade commission is to
be given authority over only such
business concerns as shall have an
aggregate annual gross revenue Of
100000.
Smaller business concerns are 10 he
exempt from government surveillance
The house judiciary committee is
completing its draft of the anti-hold-
ing company bill. This bill too is
to be limited in its restrictions To such
corporations as shall seem to the COM
mittee dangerous 10 competition and
in restraint OF trade Holding COM
panies TO be prohibited 10y law are TO
be classified with respect To the ge-
ographic extent of their sphere of ac-
tiVities.
Directors TO Blame.
An important feature OF this bill
will be the provision making directors
personally responsible for the actions
of corporations The purpose of the
law will be To do away with dummy
directors.
Henry E. Kerstein of Rochester.
y. y, advocated the right of manu-
facturers TO fix prices of standardized
goods and opposed the provisions in
trust bills requiring fixed prices for
retailers. He urged the small dealer
depended on the manufacturer to pro-
tect him against price cutting by large
establishments.
Mr.. Kerstein admitted the patented
eye glass bridge concern he repre-
scented sold the bridge To the iobber
at $1.25: TO the retailer at 50. and
the bridge was sold to the consumer
at So. He cOntended the profit on
the bridge was justified.
John T. Manson of New Haven.
Conn, urged that no bank with a
capital of less than SIS, goo, 600 should
be brought within the provision
against interlocking directorates and
that all mutual savings banks should
be exempted.
To Enlarge Scope.
In order to enlarge the scope Of
the federal reserve system the organi-
cation committee Tuesday issued rules
and regulations prescribing conditions
under which state banks and trust
companies may enter the system and
buy stock in the reserve banks to be
organized.
After sending kilograms to the at
torney general in each state in the
union. the committee has found that
these banks and trust companies are
entitled to much the same privileges
as those extended to national banks.
but a more rigid entrance examination
is required.
The committee Tuesday decided any
state bank or trust company may
make application for right To sub
scribe for stock i'm the federal reserve
bank organized or TO be organized in
its locality Whenever such stock is
issued to a state bank or trust COM
pany. it shall be done under the fol
lowing rules and regulations:
Rules Will Apply.
THE state bank or trust COM
pany shall forward to the reserve
board a resolution similar to that
adopted by the board Of directors OF
national banks which have applied
2-The bank shall then apply for
an amount of capital stock in the
federal reserve bank OF its district
equivalent to six per cent Of its unim-
paired stock.
State banks and trust companies
shall also file with their application
for membership copies of their char
ters with a digest showing the pow
ers they now exercise and those they
expect.
Am order to be eligible to mem
DeISnlD the STATE EstIlhS dllu Il Ntsa~
companies must have impaired cap
ital stock az follows:
In cities or towns Of less than 5000
inhabitants, $4,000.
In cities or towns Of more than
5000 inhabitants, but less than 5000
inhabitants, $4,000.
In cities OF more than 5000 inhabi-
tants, but less than 90, 600 inhabitants
100000.
In cities of more than $4,000 in
habitants. 100000.
Provision is also made in the new
regulations for state banks and trust
companies TO become members or the
federal reserve system by first being
converted into national banks.
Where such conversion Is completed |
before the expiration Of so days after
the passage Of the federal reserve act.
these banks will be given until Feb.
%. 1914, to accept the provisions OF
the act.