New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-18
LAST TRUST BILL
READY TO OFFER
Holding Companies Measure
Aimed Only at the bad"
Corporations.
From Tho Tribune Bureau. J

WASHINGTON, March u The administra
ton bill TO prohibit holding companies
which operate in restraint of trade was
made public tonight by Chairman Clay
ton OF the House judiciary Committee. II
is the last OF the four measures prepared
by the Judiciary Committee. and its in
PRODUCTION follows a conference at the
White House of the President and Repre-
sentatives Clayton. Carlin and Floyd.
Hearings on the holding companies bill
are yet to be held, and while its funda-
mental provisions meet the approval OF
the administration, II is subject to
change, II the hearings demonstrate the
need. The measure is short, but il gave
the Democrats of the committee more
trouble than any of the three bills hereto
fore introduced
The task OF differentiating between
good and bad holding companies has en-
gagged attention for several weeks, am.
the bill as presented makes the elimina-
ton or lessenlng Of competition the key
note of the objection 10 holding com
panies
The personal guilt idea, on which
the President insists throughout the, anti
trust programme, is reflected in the bill,
the text of which is as follows:
Section l. That IT shall be unlawful
for one corporation engaged in inter
state or foreign commerce to acquire, di-
rectly or indirectly. the whole or any
part of the stock or other share capitai
a1
interstate or foreign commerce, where
the effect OF such acquisition is TO elimi'
nate or lessen competition between III o
CORPORATION whose stock is so acquired
and the corporation making the acqu,si-
ton, or 10 create a monopoly of any Inc
Of trade in any section or community.
Sec 2 That IL shall be unlawful for
one corporation to acquire. directly or
indirectly. the whole or any part OF the
stock or other share capital Of two o.
more corporations engaged i'm interstate
or foreign commerce. where the effect OF
such acquisition, or the use Of such stock
BY the voting or granting of proxies, or
otherwise, is TO eliminate or lessen com
petition between such corporations, Or
any Of them, whose stock or other share
capital is 50 acquired, or to create &
monopoly of any line of trade in any sec
ton or community.
Sec 3. That this act shall not apply
TO corporations purchasing such stock
solely for investment. and not using the
same by voting or otherwise. 10 bring
about or in attempting 10 bring about
the lessening of competition.
Sec 4. That every violation of this act
shall constitute a mlsdemeanor. punish
aole by a fine not exceeding 5000, or inn
prisonment not exceeding one year, or
both such fine and Imprisonment in the
discretion OF the court: and any individual
who. as officer or director OF a corpora
ton. or otherwise. orders, takes action
or participates in carrying out any trans
action herein forbidden shall be held and
deemed guilty OF misdemeanor under
this section
Sec >. That nothing contained in this
act shall prevent a corporation engaged
in interstate or foreign commerce from
causing the formation OF subsidiary cor
rotations for the actual carrying on of
their immediate lawful business. or the
natural and legitimate branches thereof,
or from owning and holding all or part
Of the stock of such subsidiary corpora
tons. when the effect Of such formation
is not to eliminate or lessen pre-exist-
ing competition
Sec. s. That nothing contained in this
act shall be held 10 affect or impair any
right heretofore legally acquired: pro-
vided. that nothing in this section shall